8common Posts 32% Revenue Growth and 76.5% Gross Margin in Q4 FY25
8common Limited has closed FY25 with a positive operational cash flow and EBITDA, driven by record SaaS revenue and significant margin improvements following major infrastructure upgrades.
- Record normalised SaaS and transaction revenue of $1.36 million in Q4 FY25
- Gross margin improved to 76.5%, up from 58% a year earlier
- Operational costs cut by 38% year-on-year
- Positive net operating cash inflow of $203k for the quarter
- New government client wins including Australian Institute of Marine Science
Strong Finish to FY25
Fintech company 8common Limited (ASX – 8CO) has reported a positive operational cash flow and EBITDA for the fourth quarter of FY25, marking a significant turnaround after a year of strategic investments. The company recorded a normalised transaction and SaaS revenue of $1.36 million for the quarter, a 32% increase compared to the previous corresponding period, supported by a gross margin expansion to 76.5%.
This strong finish was underpinned by the completion of major infrastructure, billing, and technology upgrades that management credits with driving meaningful margin improvements. These enhancements have not only boosted profitability but also positioned 8common well for future growth.
Operational Efficiency and Cost Control
Alongside revenue growth, 8common achieved a 38% reduction in total operational costs compared to the prior year, with administrative and corporate expenses down 45%. This disciplined cost management contributed to a net operating cash inflow of $203,000 for the quarter and a modest positive cash flow for the full year.
The company’s user base remained stable at approximately 185,000, with an average revenue per user (ARPU) rising to $34.14, reflecting improved monetisation of its Expense8 platform and CardHero prepaid card solution.
Renewed Government Momentum
Post the federal election, 8common has seen a resurgence in government procurement activity, securing new contracts including with the Australian Institute of Marine Science. The onboarding of key government agencies such as the Net Zero Economy Authority and the National Anti-Corruption Commission during the quarter further validates the company’s positioning in the public sector.
Reseller partnerships are also strengthening, with multiple partners bidding on new business opportunities, suggesting a pipeline that could drive further revenue growth in FY26.
Financial Position and Outlook
Despite the positive cash flow, 8common’s cash balance remains low at $0.1 million as of June 30, 2025, supported by a $1.5 million unsecured loan facility from the Executive Chairman. The company has begun repaying portions of this facility, indicating cautious financial management as it balances growth investments with liquidity.
CEO Andrew Bond highlighted the foundational work completed over the past nine months and expressed confidence in the company’s ability to capitalise on new client wins and margin expansion opportunities in the coming year.
Bottom Line?
8common’s Q4 results signal a turning point, but sustaining momentum and managing liquidity will be critical as it moves into FY26.
Questions in the middle?
- Can 8common maintain EBITDA positivity and cash flow growth beyond one quarter?
- How will the company leverage its government contracts to accelerate user growth and revenue?
- What impact will the repayment of the loan facility have on 8common’s financial flexibility?
