HUB Cyber Security (HUBC, Financial) has entered into a strategic, long-term agreement for KYC and compliance services with Kyrrex, alongside a major cryptocurrency merchant, which acts as a leading cryptocurrency payments gateway. This partnership is tied to the impending merger between Kyrrex and the crypto merchant vendor. Under this deal, HUB will provide its advanced Perpetual KYC solution, which includes continuous, automated customer identity monitoring and management, regulatory intelligence, risk scoring, and data integration services.
The Perpetual KYC service agreement is structured on an annual recurring basis and aims to support approximately 1.2 to 1.5 million customer entities. This is expected to generate about $25 million in annual revenue for HUB, starting July 1, 2025. Additionally, HUB will conduct "Regulatory Readiness Sprints" during pre-merger due diligence, deploy a Unified KYC Secured Fabric for immediate cost efficiencies, and offer Horizon Scanning-as-a-Service to ensure the merged entity remains compliant with evolving MiCA, FinCEN, and FATF standards.
HUBC Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hub Cyber Security Ltd (HUBC, Financial) has seen significant growth in its pipeline, especially from financial institutions and public infrastructure providers in Europe and North America.
- The company has been awarded a €20 million engagement by the Bank of San Marino to modernize its digital banking infrastructure, expected to be delivered in full this year.
- Hub Cyber Security Ltd (HUBC) has improved its gross margin profile by over 1,000 basis points year over year in the second half of 2024.
- The company has reduced legacy liabilities by over $17 million and secured new financing on favorable terms, strengthening its financial position.
- Hub Cyber Security Ltd (HUBC) is expanding its US presence with a new office in New York City and is aggressively hiring world-class talent with deep domain expertise.
Negative Points
- Revenue for the second half of 2024 was $13.8 million, down from $17.6 million in the same period of 2023, reflecting strategic pivots.
- Full-year 2024 revenue was $39.6 million, a decrease from $42.7 million in 2023.
- The company reported an operating loss of $11.1 million in the second half of 2024, despite improvements.
- Cash and cash equivalents at the end of the year were only $3.1 million, indicating potential liquidity concerns.
- Hub Cyber Security Ltd (HUBC) is transitioning from hardware and services to a software-centric model, which may involve risks associated with strategic shifts.
