Change Financial’s Profitability Turnaround Raises Questions on Sustainability and Competition
Change Financial has surpassed its FY25 revenue targets and is set to report its first positive underlying EBITDA, signaling a pivotal shift for the fintech. The company also projects strong revenue and earnings growth for FY26, underpinned by robust sales momentum and operational efficiencies.
- FY25 revenue reached US$15.1 million, up 42% year-on-year
- Maiden positive underlying EBITDA expected in FY25
- FY26 revenue guidance raised to US$16.5–18.0 million
- Underlying EBITDA forecast to increase significantly to US$2.5–3.5 million in FY26
- Company expects to be net cash flow positive in FY26
Strong Revenue Growth and Profitability Milestone
Change Financial Limited (ASX, CCA), a Brisbane-based fintech specialising in payment solutions and card issuing technology, has announced a significant financial milestone. For the fiscal year 2025, the company expects to report its maiden positive underlying EBITDA, a key profitability metric, alongside revenue of US$15.1 million, a 42% increase over the previous year. This performance notably exceeds the company’s earlier guidance of over 30% revenue growth.
The company’s growth trajectory is underpinned by a three-year compound annual growth rate (CAGR) of 22%, reflecting sustained momentum in client acquisition and sales execution. The fourth quarter of FY25 alone delivered a record US$4.0 million in revenue, further highlighting the accelerating sales pipeline.
Optimistic Outlook for FY26
Looking ahead to FY26, Change Financial projects revenue between US$16.5 million and US$18.0 million, with underlying EBITDA expected to rise sharply to a range of US$2.5 million to US$3.5 million. This forecast represents a substantial improvement in earnings quality and margin expansion as the company leverages operating scale.
Importantly, Change anticipates becoming net cash flow positive in FY26, marking a critical inflection point in its lifecycle. This transition reflects both increased client invoicing and a meaningful reduction in operational costs, particularly within its US operations.
Strategic Drivers and Market Position
Change Financial’s core platform, Vertexon, integrates seamlessly with banks and fintechs to deliver digital and virtual card solutions, including support for Apple Pay, Google Pay, Samsung Pay, and Buy Now Pay Later services. With over 150 clients across more than 40 countries and management of over 27 million cards worldwide, the company is well positioned to capitalize on the growing demand for flexible payment technologies.
The company’s testing platform, PaySim, also plays a vital role by enabling end-to-end payment system testing, a service that has become a standard for many Australian companies, including eftpos. This diversified product suite supports Change’s ability to maintain a revenue CAGR above 20% over the medium to long term.
Looking Ahead
While the FY25 results remain unaudited and subject to final confirmation, the strong financial indicators and raised guidance suggest Change Financial is entering a new phase of operational leverage and profitability. Investors will be keen to see how the company sustains its sales momentum and manages margin improvements as it scales.
Bottom Line?
Change Financial’s maiden positive EBITDA and robust FY26 guidance signal a fintech on the cusp of sustained profitability and growth.
Questions in the middle?
- How will Change Financial sustain and accelerate its sales pipeline momentum in FY26?
- What specific cost efficiencies contributed to the net cash flow positive position in Q4 FY25?
- How might competitive pressures in the payments and card issuing space impact margin expansion?
