Novatti Posts 23% Revenue Growth and Narrows EBITDA Loss to $3.1m
Novatti Group reports a record $51.8 million revenue for FY25 alongside a 65% improvement in underlying EBITDA, signaling a successful turnaround and a strategic pivot back to growth.
- Record $51.8 million revenue, up 23.3% year-on-year
- Underlying EBITDA loss narrowed by 65% to $3.1 million
- 48% reduction in cash use in second half of FY25
- Streamlined operations with exit from non-core assets and markets
- Raised $7 million capital to strengthen balance sheet
A Year of Turnaround and Growth
Novatti Group Limited (ASX – NOV), a prominent player in the Australian fintech payments sector, has unveiled its FY25 results showcasing a significant turnaround. The company posted record annual revenue of $51.8 million, a 23.3% increase compared to the previous year, driven by a sharpened focus on high-margin services and strategic business reforms.
Underlying EBITDA improved markedly, with losses narrowing by 65% to $3.1 million. This improvement reflects the compounding benefits of Novatti’s turnaround initiatives, particularly evident in the second half of the fiscal year where cash usage dropped by nearly half compared to the first half. The company ended FY25 with $2.5 million in cash, underscoring enhanced financial discipline.
Strategic Streamlining and Market Focus
Novatti’s management continued to streamline operations by divesting non-core assets and exiting less profitable or complex business lines. Notably, the sale of its stake in the International Bank of Australia for $2.87 million and the exit of Emersion from the US market were key moves to reduce cash burn and refocus on core markets in Australia and New Zealand.
The company also completed a brand refresh in Q3 FY25, which helped clarify its value proposition and attract new business, especially in lucrative areas like card issuing. This repositioning has translated into several commercial wins, including contracts with a major Asian airline to upgrade voucher payments, a tier-one Australian telecommunications company renewing a multi-year agreement, and expansion of card issuing services into New Zealand for a global fintech client.
Capital Raising and Leadership Strengthening
To support its pivot back to growth, Novatti raised approximately $7 million through a partially underwritten capital raising in Q2 FY25. The proceeds were used to repay legacy liabilities and fund growth initiatives. The company also bolstered its leadership team by appointing Hayden Vowell as CFO, bringing extensive experience in scaling high-growth technology businesses.
Innovating with Stablecoins
Beyond traditional payments, Novatti’s investment in AUDC, an AUD-backed stablecoin, continues to gain momentum. Following a successful $1.2 million seed round after FY25, Novatti’s 57% stake in AUDC is now valued at $7 million. This positions Novatti to benefit from growing institutional interest and regulatory support for stablecoins, a promising frontier in fintech innovation.
Overall, Novatti’s FY25 results reflect a company emerging from a challenging period with a clearer strategic focus, improved financial health, and renewed growth ambitions.
Bottom Line?
Novatti’s turnaround gains traction, setting the stage for growth and innovation in FY26.
Questions in the middle?
- How will Novatti balance growth ambitions with ongoing cost discipline?
- What impact will regulatory developments have on AUDC’s stablecoin prospects?
- Can Novatti sustain momentum in high-margin services amid fintech competition?
