Change Financial’s Q3 Revenue Surges 30% to US$3.9m Amid US Exit
Change Financial Limited delivered a record Q3 FY25 revenue of US$3.9 million, driven by strong growth in its Payments as a Service platform and recurring revenue streams, while substantially completing its US operations exit. The company is confident of surpassing 30% revenue growth and achieving its first underlying EBITDA positive result for FY25.
- Q3 FY25 revenue hits record US$3.9 million, up 30% year-on-year
- Recurring revenue streams account for 74% of FY25 year-to-date revenue
- Substantial wind-down of US operations reduces costs and improves EBITDA
- New client wins include first BIN sponsorship in Australia and expanded Asia-Pacific presence
- Cash holdings of US$3.2 million with zero debt as of March 31, 2025
Strong Revenue Growth and Recurring Income
Change Financial Limited (ASX: CCA) has reported a robust third quarter for fiscal year 2025, posting record revenue of US$3.9 million, a 30% increase compared to the prior corresponding period. This growth was primarily driven by the company’s Payments as a Service (PaaS) platform, Vertexon, which now supports over 69,000 active cards and has seen a 386% increase in cash flow year-on-year.
Recurring revenue streams, including support, maintenance, and transaction fees, now represent 74% of the company’s FY25 year-to-date revenue of US$11.1 million, up 48% on the prior corresponding period. This shift towards a more predictable revenue base underpins Change Financial’s confidence in sustainable growth.
Strategic US Exit and Cost Efficiencies
The company has substantially completed the wind-down of its US operations, a strategic move announced in late 2024 due to regulatory and market challenges. This exit has materially reduced operating expenses, contributing to an underlying EBITDA of US$0.4 million for Q3 FY25, or US$0.6 million excluding US costs. The improved cost structure is expected to further enhance profitability in the second half of FY25.
CEO Tony Sheehan highlighted that the US exit is delivering operational efficiencies and allowing the company to focus on profitable revenue growth in its core markets.
Expanding Client Base and Market Footprint
Change Financial secured new client wins during the quarter, including its first BIN sponsorship client in Australia, a significant milestone opening a global payments opportunity. The company also signed new projects and license sales with existing clients in Australia, New Zealand, and Asia, expanding its footprint across Oceania and Southeast Asia.
Partnership agreements with a second global processor were also signed to accelerate client acquisition and market penetration in the region. The company’s PaySim testing platform continues to gain traction, supporting clients’ payment system reliability and performance needs.
Financial Position and Outlook
As of March 31, 2025, Change Financial held cash reserves of US$3.2 million with no debt, supported by US$0.9 million in guarantees backing the Vertexon platform. Despite some quarter-to-quarter cash flow fluctuations due to seasonality and one-off costs, the company maintains a strong liquidity position.
Looking ahead, Change Financial is confident in achieving its FY25 targets of over 30% revenue growth and delivering its maiden underlying EBITDA positive result. The company is focused on driving sales in Asia and Oceania, improving operational efficiencies, and leveraging its scalable PaaS platform to capture further market share.
Executive Director Tom Russell and CEO Tony Sheehan will host an investor webinar on April 29, 2025, to discuss the quarter’s results and strategic outlook.
Bottom Line?
With US operations behind it and recurring revenues scaling, Change Financial is poised to turn growth into sustained profitability in FY25.
Questions in the middle?
- How will Change Financial sustain momentum in client acquisition across Asia-Pacific markets?
- What impact will foreign exchange fluctuations have on reported USD revenues and margins?
- Can the company maintain cost discipline while scaling its PaaS platform and expanding services?
