Freelancer Pairs 31% Volume Growth With Marketplace Repair Plan

Freelancer Limited (ASX: FLN) increased group gross marketplace value (GMV) 30.9% to A$574.6 million during the first half of FY26 as rapid growth at Escrow.com and record activity at Loadshift outweighed a contraction in its core Freelancer marketplace.

Group revenue fell 12.1% to A$23.9m and gross profit declined 10.4% to A$20.9m, although revenue was broadly flat in the group’s main operating currency at US$16.8m, down 2.6%.

The group generated A$1.1m in EBITDA and recorded an A$0.3m operating loss, compared with A$1.8m operating profit in the previous corresponding period.

The A$2.1m net loss after tax primarily reflected an A$2.4m non-cash impairment of non-core digital assets, while the carrying values of Freelancer, Escrow.com and Loadshift remained supported.

Freelancer finished June with A$17.9m cash, no debt, and a focused second-half plan to restore marketplace growth while extending the scale and operating leverage emerging across Escrow.com and Loadshift.

Escrow Growth Reshapes Mix

Escrow.com GMV climbed 39% to A$517.6m, or 54.6% in constant-currency terms, as domain-name activity remained a major driver and transactions involving Internet Protocol version 4 addresses and wholesale electronics expanded.

Revenue increased 15.1% to A$7m and 27.7% in constant currency, while the take rate fell from 1.63% to 1.35% because larger transactions carried lower percentage fees.

The business completed its seventh consecutive profitable year, progressed a banking integration incorporating real-time payments and released Escrow 2.0 to early-access users.

Escrow.com has secured more than US$8.3 billion of transaction value for about three million lifetime customers, with management targeting further growth in wholesale electronics, import and export activity.

Marketplace Problems Under Repair

Freelancer marketplace GMV declined 20.3% to A$42.4m and revenue dropped 23.2% to A$14.9m, with the constant-currency declines narrowing to 11.7% and 15% respectively.

Enhanced integrity controls reduced fraud but introduced login friction for legitimate users, automated AI scraping disrupted site stability and search engine optimisation, and a payment gateway migration exposed previously masked acceptance problems.

Management has optimised integrity settings, restored site stability, and begun shifting transaction volume from underperforming gateways, while traffic has recovered above pre-de-indexation levels and project activity is lifting.

“The Freelancer marketplace had a hard half, and the causes are not mysterious,” chief executive officer and chair Matt Barrie said.

"For the second half the priorities are narrow: Freelancer product stability under new leadership and getting Freelancer growing again, keep Escrow.com compounding, lift Loadshift monetisation, and use AI where it moves a number rather than where it makes a headline.

Loadshift Posts Record Half

Loadshift delivered record GMV of A$14.6m, up 9.6%, and record revenue of A$1.8m, up 12.2%, supported by continued marketplace activity and product releases intended to improve conversion and reduce off-platform transactions.

The freight platform released redesigned carrier onboarding, enterprise features, embedded calling, and listing improvements as Freelancer assessed selective expansion beyond Australia.

Across the wider group, AI now routes all Tier 1 support tickets and resolves about 11% without human involvement, while AI-assisted engineering has lifted release throughput by as much as 40% in selected work.

AI development projects represented about 7.4% of Freelancer GMV during the second quarter, highlighting a growing demand category as management pursues higher-value work, repeat use and improved customer retention.

Management expects benefits from the initiatives to emerge through the second half and into FY27, although the timing of the financial recovery following higher traffic and project volumes remains uncertain.

"We are debt-free and close to breakeven—nearly every problem in front of us is one we caused ourselves, which means it is one we can undo," Mr Barrie added.