Spenda Posts $3.57m Cash Receipts, Payment Volumes Double to $138m in Q2 FY25

Record Revenue Growth and Operational Momentum

Spenda Limited (ASX:SPX) has delivered a standout performance in the quarter ended 31 December 2024, posting cash receipts from customers of $3.57 million, an 86% increase quarter-on-quarter and a remarkable 160% jump compared to the same period last year. This surge in cash inflows underscores the growing market acceptance of Spenda’s integrated software and payment solutions.

Payment volumes also saw a dramatic rise, reaching $138 million in Q2 FY25, more than doubling the $64 million recorded in Q2 FY24. This growth reflects the successful expansion of Spenda’s platform usage, particularly through key contracts with Capricorn DSD, SwiftStatement, and Carpet Court SOE, which are driving multiple recurring revenue streams.

Improved Cash Flow and Cost Management

Alongside revenue growth, Spenda has made significant strides in improving its cash flow dynamics. The company’s average monthly cash burn declined by approximately 35% to $316,000 in the first half of FY25, down from $483,000 in the prior corresponding period. This reduction is notable given the recent acquisition of Limepay, which added operational costs but also expanded Spenda’s capabilities and customer base.

Operating costs have become more predictable, with average monthly expenses around $1.03 million for the six months to December 2024. While some cost increases were driven by transaction and integration expenses related to Limepay, the company is focused on rationalising its lending portfolio and decommissioning low-margin programs to further improve margins.

Strategic Product Rollouts and Market Engagement

Spenda’s commercial initiatives are gaining traction, particularly the SwiftStatement Member program launched with Capricorn in November 2024. The pilot’s success has validated the product’s market fit across Capricorn’s 30,000-strong member base, with first commercial revenues generated in the quarter. The company is enhancing supply-side features to accelerate delivery and onboarding, aiming to broaden adoption in 2025.

Marketing efforts have also intensified, with Spenda participating in Capricorn’s Gala and Roadshow events to boost member engagement and align branding post-Limepay acquisition. The company continues to scale its finance and payments products, including SpendaAR, SpendaAP, and Payment Widget, contributing to growing SaaS licensing fees.

Financial Position and Outlook

Spenda ended the quarter with $7.2 million in cash and cash equivalents, up from $6.5 million at the previous quarter’s end, alongside a $12.3 million gross client loan book. Despite a slight contraction in the net client loan book, the company maintains a positive net cash position of $4.4 million.

Looking ahead, Spenda plans to focus on commercialising existing contracts, expanding the AirPlus product to improve margins, and pursuing a financial services license alongside ISO 27001 accreditation. These initiatives aim to broaden service offerings and enhance operational scalability.

Management acknowledges the longer-than-expected timeline to execute its strategy but remains confident that the company is on a clear path to breakeven and EBITDA positivity. The emphasis on multiple income streams and increasing average revenue per user (ARPU) positions Spenda well for sustainable growth in 2025.