Smart Parking is a lean, tech-driven operator with a proven model, solid fundamentals, and a genuinely scalable path to growth.
The business itself is nice and simple: it helps owners of parking assets (think shopping centres, hospitals, transport hubs etc) better manage and monetise their space. The pitch is straightforward: SPZ handles enforcement, ensures compliance, and increases space availability for actual customers, all while sharing in the revenue upside. In most cases, the client doesn't even foot the capex bill. It's win-win.
The engine behind this is Smart Parking's integrated tech platform: ANPR cameras, SmartCloud software, and automated enforcement via Parking Breach Notices (PBNs). The system tracks vehicles, detects overstays or breaches, and initiates enforcement. Critical to this model is access to vehicle registration data, which SPZ secures through legal agreements with government agencies. This end-to-end control allows for efficient scaling with minimal human intervention.
Importantly, it's working. Over the past four years, revenue has grown at a 21% CAGR, adjusted EBITDA margins have expanded to 27%, and free cash flow conversion remains high. FY24 delivered $54.3m in revenue and $14.7m in adjusted EBITDA, with $12.2m in free cash flow—an 83% conversion. The business model is capital-light post-installation, and new sites tend to pay back in under a year.
The strategic footprint is expanding. With 1,561 sites under management as of H1 FY25, Smart Parking has barely scratched the surface of a global opportunity: the company estimates over 240,000 addressable sites. It has already established operations in the UK, NZ, Germany, and Denmark, and entered the U.S. in 2025 via the acquisition of Peak Parking. The U.S. market is especially enticing—not only the largest in value terms but also deeply fragmented and inefficient.
The Peak Parking deal added more than 1,000 managed sites in markets like Texas, Florida, and Georgia, offering immediate scale and distribution for Smart Parking's tech. The AUD $38m acquisition was funded through a $30m equity raise at $0.88/share, demonstrating investor confidence and providing ample runway. With $7.2m in cash and $20m in undrawn debt capacity, the balance sheet remains conservative.
Operationally, the business is in rollout mode. Growth is both organic via direct wins of new sites and inorganic, through tuck-in acquisitions. The model is modular and replicable, and the company has demonstrated the ability to enter new geographies effectively, as evidenced by its rapid progress in Germany and Denmark. Management execution has been disciplined, with site growth averaging 31% per year since 2018.
While regulatory risk (especially access to vehicle data) exists, Smart Parking has a track record of navigating these hurdles. Queensland remains paused for now due to local policy, but other jurisdictions have proven workable, and the company continues to diversify.
This is not a winner-takes-all market. Despite some capable competition, the majority of the world’s car parks are still managed manually or with outdated systems. With a first-mover advantage in many regions, strong tech IP, and recurring revenue from long-term contracts, Smart Parking is positioned to capture share steadily over time.
At the current share price of $0.85, the company is valued at around $350 million. The trailing P/E ratio is high (~80x), but that reflects one-off impacts and a business in scaling mode. On a pro-forma basis including Peak, earnings per share are estimated to nearly double, suggesting a forward P/E under 40x. While still elevated, it's a more reasonable multiple given the company's capital efficiency, cash generation, and average profit growth of ~30% per annum. So it’s not cheap, but nor is it expensive if current trends continue.
This is a very easy to understand business, with excellent economics and a lovely track-record of disciplined execution. And there’s a lot of scope to grow. Happy to hold.
