Spenda’s Revenue Soars 106% to $11.1M Amid $13.8M Impairment Charge
Spenda Limited reported a 106% surge in revenue to $11.1 million for FY25, driven by acquisitions and expanded services, yet posted a substantial $24.3 million net loss largely due to goodwill impairment. The company’s strategic moves and funding needs highlight a pivotal phase ahead.
- Revenue doubled to $11.1 million in FY25
- Statutory net loss widened to $24.3 million
- Significant $13.8 million goodwill and intangible asset impairment
- Acquisition of Limepay Pty Ltd and sale of invoice finance portfolio
- New technology partnership to develop corporate credit and payments platform
Revenue Growth and Strategic Acquisitions
Spenda Limited has reported a remarkable 106% increase in revenue for the year ended 30 June 2025, reaching $11.1 million compared to $5.4 million in the prior year. This growth was largely fueled by the acquisition of Limepay Pty Ltd and the expansion of services to key strategic customers, blending software, payments, and lending offerings into a unified platform.
The company’s integrated platform aims to streamline supply chain transactions by combining software as a service (SaaS), payment processing, and lending solutions, creating multiple revenue streams and enhancing operational efficiency for its clients.
Financial Performance and Impairment Impact
Despite the revenue surge, Spenda recorded a statutory net loss after tax of $24.3 million, an 84% increase from the $13.2 million loss in FY24. A significant factor was a non-cash impairment charge of $13.8 million on goodwill and intangible assets, reflecting management’s reassessment of the recoverable value of acquired businesses, particularly within its SaaS and payments cash-generating unit.
The impairment underscores the challenges Spenda faces in translating its strategic investments into immediate profitability, although management remains optimistic about replicating revenue growth with controlled overheads in the coming year.
Operational Highlights and Strategic Initiatives
During FY25, Spenda completed the acquisition of Limepay Pty Ltd, enhancing its payments infrastructure and contributing over $3.3 million in revenue. The company also divested its invoice financing portfolio to Grapple Fund Pty Ltd for $2 million, signaling a strategic refocus away from lending book ownership towards technology and platform services.
Additionally, Spenda entered into a technology services agreement with APG Pay Pty Ltd to develop a closed-loop corporate credit and payments platform, aiming to further integrate and innovate within the supply chain finance ecosystem.
Funding and Going Concern Considerations
Spenda remains reliant on debt and equity funding to sustain operations, having secured a $3 million working capital facility with Capricorn Society Limited and drawn down $1.25 million from a convertible note facility with Obsidian Global GP, LLC post-year-end. The company’s auditors are expected to include an emphasis of matter regarding going concern, reflecting ongoing funding risks despite the company’s growth initiatives.
No dividends were declared for FY25, consistent with the prior year, as Spenda prioritizes reinvestment and balance sheet strengthening.
Looking Ahead
Spenda’s ‘One Platform’ strategy, which integrates software, payments, and lending into a seamless supply chain solution, remains central to its growth ambitions. The company’s ability to scale payment volumes; up 101% to $363 million; and leverage strategic partnerships will be critical to improving financial outcomes and investor confidence in FY26 and beyond.
Bottom Line?
Spenda’s FY25 results mark a turning point with strong revenue momentum shadowed by significant impairment and funding challenges, setting the stage for a critical year ahead.
Questions in the middle?
- Can Spenda convert its revenue growth into sustainable profitability in FY26?
- What impact will the new corporate credit platform with APG Pay have on future earnings?
- How will ongoing funding needs and going concern risks influence investor sentiment?