Change Financial’s FY25 Revenue Soars 42% to US$15.1m, Beats Guidance
Change Financial Limited reported a record Q4 FY25 revenue of US$4.0 million, marking a 26% year-on-year increase, alongside positive underlying EBITDA and a strong outlook for FY26.
- Q4 FY25 revenue hits record US$4.0m, up 26% year-on-year
- FY25 revenue grows 42% to US$15.1m, exceeding guidance
- Recurring revenue accounts for 76% of FY25 total
- US operations wound down, improving profitability and cash flow
- FY26 guidance projects revenue US$16.5m–18.0m and positive EBITDA
Strong Finish to FY25
Change Financial Limited (ASX, CCA) closed FY25 on a high note with a record quarterly revenue of US$4.0 million, representing a 26% increase compared to the same quarter last year. The full fiscal year saw revenue climb 42% to US$15.1 million, comfortably surpassing the company’s prior guidance of growth exceeding 30%. This robust performance underscores the success of Change Financial’s strategic focus on its Payments as a Service (PaaS) platform and expanding client base.
Recurring Revenue and Platform Growth
Recurring revenue streams, primarily from the Vertexon PaaS platform and support and maintenance fees, accounted for 76% of FY25 revenue, highlighting the company’s shift towards more predictable income. The number of active cards on the Vertexon platform surged by 133% year-on-year to over 73,000, reflecting strong client adoption and onboarding momentum in Australia and New Zealand. This growth is a key driver of the company’s expanding transaction volumes and revenue base.
Strategic US Market Exit and Operational Efficiency
In a decisive move, Change Financial exited the US market during FY25 due to regulatory challenges, substantially completing the wind down of its US operations. This exit has had a positive impact on the company’s financials, with underlying EBITDA turning positive at US$0.2 million for FY25 and rising to US$1.3 million when excluding US operation costs. The wind down has also improved operational capacity and cash flow, with the company reporting positive net cash flow from operating activities of US$0.9 million in Q4 and US$0.7 million for the full year.
Outlook and Growth Focus
Looking ahead, Change Financial projects FY26 revenue between US$16.5 million and US$18.0 million, with underlying EBITDA expected to range from US$2.5 million to US$3.5 million. The company anticipates maintaining positive net cash flow and is focused on expanding its sales pipeline, particularly in Oceania and Southeast Asia. CEO Tony Sheehan emphasized the company’s confidence in sustaining a revenue compound annual growth rate above 20% over the medium to long term, driven by continued investment in sales and marketing and operational efficiencies.
Innovations and Client Wins
During the quarter, Change secured a new PaaS client with established card programs in Australia and New Zealand, targeting a launch in early H2 FY26. The company also reported increased sales activity for its PaySim testing platform, including new licenses and upsells to global payments companies. These developments signal growing demand for Change’s integrated payment solutions and testing capabilities, reinforcing its competitive positioning.
Bottom Line?
With a solid FY25 behind it and ambitious FY26 guidance, Change Financial is poised at a pivotal growth inflection point.
Questions in the middle?
- How will Change Financial capitalize on growth opportunities in Southeast Asia and Oceania?
- What impact will the cyclical nature of one-off licence sales have on future quarterly revenues?
- How might foreign exchange fluctuations affect reported financials and cash holdings going forward?
