Way2VAT’s Q2 Revenue Surges 50% to $1.65M, Client Base Hits 414

Record Revenue and Client Growth

Way2VAT Ltd, a fintech leader specialising in automated VAT reclaim solutions, has delivered a standout performance in the June quarter of FY25. The company posted record quarterly revenue of A$1.65 million, marking a 50% increase compared to the same period last year and a 57% rise from the previous quarter. This surge was largely driven by new client acquisitions, notably the global real estate giant JLL, and increased activity from existing clients such as Solenis Chemical and Tik Tok.

Way2VAT’s enterprise client base expanded modestly to 414, reflecting steady growth and deeper penetration within existing accounts. The JLL contract, announced in May, has broadened in scope to cover 77 entities, signalling potential for further revenue upside as more VAT reclaims are processed across JLL’s global operations.

Operational Efficiency and Cost Management

Alongside revenue growth, Way2VAT has successfully reduced its operating expenses to A$2.13 million in Q2, down from a peak of A$2.52 million in FY24. This improvement stems from cost-cutting initiatives implemented in late FY24, including reductions in staff costs and professional services. The narrowing gap between revenue and operating expenses is a positive sign as the company approaches the seasonally stronger second half of the year, when VAT reclaim activity typically intensifies.

Cash Flow and Receivables Challenges

Despite strong revenue recognition, Way2VAT’s accounts receivable balance increased to approximately A$5.3 million, up from A$4.6 million at the end of March 2025. The company continues to face challenges in cash collections, particularly from German and Italian tax authorities, which have contributed to a slower cash conversion cycle. Management remains confident that collections will improve in coming quarters, supported by submitted VAT reclaim claims and ongoing engagement with tax authorities.

Way2VAT’s financing arrangements with Bank Hapoalim remain in place, including secured and unsecured loans and a credit line facility. The company is actively discussing potential increases to its financing capacity to support growth and working capital needs.

Looking Ahead

CEO Amos Simantov expressed optimism about the company’s outlook, highlighting a robust backlog of client work and a strong pipeline of new opportunities. The upcoming VAT reclaim deadlines in September and December across Europe, Asia, and the Middle East are expected to drive higher volumes and revenues in the second half of FY25. Additionally, Way2VAT’s strategy to convert local clients into international users of its platform continues to gain traction, particularly through its Spanish subsidiary DivoluIVA.

While the company’s cash runway remains under six months based on current burn rates, management is confident that revenue growth and improved collections will reduce operating cash burn, with plans to raise additional funds if necessary. Investors will be watching closely to see how these dynamics unfold in the critical upcoming quarters.