Gratifii Posts 210% Cash Receipt Growth, Eyes $84M FY26 Run Rate

Record Cash Receipts Highlight Resilience

Gratifii Limited (ASX – GTI) has delivered another quarter of impressive financial performance, reporting cash receipts of $19.4 million for the fourth quarter of fiscal year 2025. This figure represents a 210% increase compared to the same quarter last year and a 4.7% rise over the previous quarter, underscoring the company’s growing market traction despite ongoing economic pressures.

The full-year cash receipts totalled $63.7 million, surpassing the company’s FY25 target of $60 million and setting a strong foundation for an anticipated pro-forma run rate of approximately $84 million in FY26. This growth trajectory reflects Gratifii’s successful execution of its strategic initiatives and expanding client base.

Operational Advances and Platform Migration

A key operational milestone was the near completion of migrating clients from the legacy Neat Ideas platform to the new Gratifii Connect platform. This transition, which included the successful migration of RACV, is expected to be finalized by September, after which the older platform will be decommissioned. The new platform promises enhanced scalability, operational efficiency, and a broader suite of client offerings, positioning Gratifii for accelerated growth.

Alongside platform upgrades, Gratifii has expanded its product portfolio with the launch of Member’s Mobile, Australia’s first B2B2C co-branded mobile service. RAC(WA) became the first of three contracted distribution partners to go live, targeting a combined member base of approximately 2.5 million consumers. Additionally, contracts have been signed for the upcoming rollout of Member’s Internet, slated for later this year, which could further drive revenue diversification.

Financial Health and Cost Efficiencies

Financially, the company reported a $209,000 operating surplus for the quarter, a remarkable $3.59 million improvement over the previous quarter. The full-year normalised operating cash loss was a modest $0.9 million, slightly higher than the prior year but commendable given tightened supplier trading terms. Notably, one-off redundancy costs of $99,000 were incurred in 4Q, expected to yield approximately $800,000 in annualised employment cost savings starting FY26.

Gratifii’s cash position strengthened significantly, ending the quarter with $2.83 million on hand, bolstered by a successful institutional placement that raised $1.7 million before fees. This capital injection provides a solid buffer to support ongoing growth initiatives and operational scaling.

Looking Ahead

CEO Iain Dunstan highlighted the company’s momentum despite a challenging economic backdrop, emphasizing the strategic importance of platform migration and new product rollouts. With several enterprise prospects in banking and insurance sectors under discussion, and the anticipated operational efficiencies from recent integrations, Gratifii is well positioned to accelerate earnings growth and margin expansion in FY26.

While the company expects a seasonally softer first quarter, the combination of platform scale, new client onboarding, and expanded Member’s Mobile adoption sets the stage for sustained revenue growth and improved profitability.