Change Financial Surges 42% Revenue, Posts Maiden Positive EBITDA After US Exit

Strong Revenue Growth and Operational Momentum

Change Financial Limited (ASX – CCA) has delivered a standout FY25 performance, reporting a 42% increase in revenue to US$15.1 million, well above its initial guidance of over 30%. This growth was primarily driven by a remarkable 391% surge in Payments as a Service (PaaS) revenue, which now constitutes a significant portion of the company’s income. Recurring revenue streams, including PaaS transaction fees and support & maintenance, accounted for 76% of total revenue, up from 58% the previous year, underscoring the company’s shift towards more predictable and stable income.

First Positive Underlying EBITDA and Cash Flow Milestone

For the first time, Change Financial posted a positive underlying EBITDA of US$0.2 million for the full year, a notable turnaround from prior losses. Excluding the recently exited US operations, underlying EBITDA rises to US$1.3 million, highlighting the improved profitability of the core business. The company also achieved positive operating cash flow of US$0.8 million, reflecting disciplined cost management and operational leverage as revenues scaled. This financial discipline was evident in a stable fixed cost base despite significant revenue growth.

Strategic Exit from US Market Enhances Profitability Outlook

In late 2024, Change Financial made the strategic decision to withdraw from the challenging US market due to regulatory complexities and a prolonged path to profitability. The exit, completed by early 2025, had an immaterial impact on revenue but substantially reduced operating costs. This move has materially improved the company’s operating leverage and is expected to drive further margin expansion and cash flow improvements in FY26 and beyond.

Scaling Vertexon PaaS and PaySim Platforms

Operationally, Change Financial continues to scale its Vertexon PaaS platform, which now supports over 73,000 active cards across Australia and New Zealand, up from 40,000 at the start of FY25. The platform’s capabilities have expanded with new digital pay features such as Apple Pay and Google Pay integration, enhancing client offerings. The company is onboarding three new contracted PaaS clients expected to go live in FY26, further fueling growth. Meanwhile, the PaySim testing solution saw increased sales momentum globally, with multiple new licenses and modules sold during the year.

Confident Outlook for FY26

Looking ahead, Change Financial has set ambitious FY26 guidance, targeting revenue between US$16.5 million and US$18 million and a substantial increase in underlying EBITDA to between US$2.5 million and US$3.5 million. The company anticipates becoming net cash flow positive in FY26, marking a significant milestone. CEO Tony Sheehan highlighted the growing sales pipeline and faster client onboarding as key drivers of this optimism, alongside continued product enhancements and market expansion.