Gratifii Surges with Record $18.6m Cash Receipts Amid Strategic Growth Moves
Gratifii Limited reported a record quarterly cash receipt surge of 111% year-on-year, driven by key contract wins and successful platform migration despite cyclone disruptions. The company advances its post-merger integration and eyes an $84m revenue run rate in FY26.
- 3Q FY25 cash receipts hit $18.6m, up 111% year-on-year
- Operating loss of $3.4m due to creditor repayments and tighter credit terms
- Key contracts signed with BRG Holdings and Velocity Frequent Flyer
- Successful migration of RACV to Gratifii Connect platform completed
- Raised $2.5m via placement to support growth and integration
Robust Cash Growth Despite Seasonal and Weather Challenges
Gratifii Limited (ASX: GTI) has delivered a standout third quarter for FY25, posting cash receipts of $18.6 million. This represents a remarkable 111% increase compared to the same quarter last year and a 6.3% rise over the previous quarter, underscoring the company’s accelerating momentum despite a traditionally softer trading period and the disruptive impact of Cyclone Alfred in Queensland.
The surge in cash receipts highlights the resilience of Gratifii’s integrated rewards and incentives platform, which continues to gain traction across Australia, New Zealand, and Southeast Asia. The company’s ability to grow in a challenging environment speaks to the strength of its business model and expanding customer base.
Balance Sheet Strengthening Amid Operating Loss
While the quarter recorded an operating loss of $3.4 million, this was primarily driven by strategic balance sheet improvements. Gratifii repaid approximately $2.7 million in trade creditors to align with revised, tighter credit terms from major suppliers, reflecting a broader soft credit environment. Additionally, $3.9 million in pre-acquisition liabilities related to Club Connect were settled, contributing to the year-to-date net operating loss of $5.1 million.
These repayments, while impacting short-term profitability, position Gratifii for greater financial sustainability and operational efficiency moving forward. The company ended the quarter with $1.35 million in cash, maintaining a foundation for continued investment and growth.
Strategic Contract Wins and Platform Integration Progress
Gratifii’s commercial momentum was bolstered by several key contract wins during the quarter. A significant agreement with BRG Holdings Pty Ltd (The Big Red Group/Red Balloon) expands the breadth of experiences available through Gratifii’s platform. What's more, Velocity Frequent Flyer, Virgin Australia’s loyalty program, launched movie vouchers redeemable via Gratifii, marking a notable partnership in the loyalty space.
Operationally, the successful migration of RACV, one of Gratifii’s largest clients, onto the proprietary Gratifii Connect platform marks a critical milestone. This migration validates the platform’s scalability and readiness to support large enterprise clients. The decommissioning of the legacy Neat Ideas platform is scheduled for July 2025, completing the transition and enabling the company to unlock cost and revenue synergies from its recent acquisitions.
Capital Raise and Outlook for FY26
To support its growth trajectory and integration efforts, Gratifii completed a placement raising $2.5 million from sophisticated and professional investors. This capital injection is expected to underpin ongoing operational initiatives and expansion plans.
Looking ahead, Gratifii projects an enhanced proforma revenue run rate of approximately $84 million for FY26. The company is optimistic about sustained revenue growth and margin expansion, driven by a growing pipeline of high-quality opportunities, new distribution channels, and deeper customer engagement. Post-merger integration remains a strategic priority, with system consolidation and operational streamlining anticipated to deliver meaningful cost savings by year-end.
Despite near-term challenges from Cyclone Alfred, Gratifii’s operational momentum and strategic initiatives position it well to capitalize on market opportunities and accelerate earnings growth in the coming fiscal year.
Bottom Line?
Gratifii’s record cash growth and strategic integrations set the stage for a pivotal FY26, but watch closely for margin improvements and credit term impacts.
Questions in the middle?
- How will tighter supplier credit terms affect Gratifii’s cash flow and margins in the near term?
- What is the timeline and expected impact of the full client migration to Gratifii Connect on revenue and costs?
- How will new contracts with BRG Holdings and Velocity Frequent Flyer translate into sustained revenue growth?