Fintech firm 8common has kicked off FY26 with an 8% rise in SaaS and transaction revenue, positive operational cashflow, and a renewed multi-year government contract.
- Transaction and SaaS revenue up 8% to $1.29 million
- Positive operational cash inflow of $55k and EBITDA of $152k
- NSW Department of Education renews Expense8 contract valued at $1.56 million
- Operational costs cut by 38% compared to prior corresponding period
- Stable user base of 183,000 with ARPU of $28.06
Strong Start to FY26
8common Limited (ASX, 8CO), a fintech company specialising in enterprise-grade financial transaction processing, has reported a promising start to its 2026 financial year. The company posted an 8% increase in its combined transaction and SaaS revenue to $1.29 million for the September quarter, supported by a robust gross margin averaging 70%. This growth comes despite a 16% decline in total revenue to $1.7 million, reflecting shifts in revenue composition.
Positive Cashflow and EBITDA
Notably, 8common achieved positive operational cash inflow of $55,000 and an EBITDA of $152,000 for the quarter, marking a second consecutive quarter of positive earnings before interest, tax, depreciation, and amortisation. This turnaround is underpinned by a disciplined cost reduction strategy, with total expenses down 38% year-on-year, driven largely by a 45% cut in administrative and corporate costs.
Key Contract Renewal and Partner Expansion
The company secured a significant contract renewal with the New South Wales Department of Education, extending its Expense8 platform agreement for two years with options for two additional one-year extensions. This contract is valued at an estimated $1.56 million over the initial term, with a potential total value exceeding $3.5 million including GST. Additionally, 8common expanded its partner network by onboarding Callida and GreenCloud, bringing the total number of partners to seven and enhancing its market reach.
Stable User Base and Recurring Revenue
8common maintained a stable user base of approximately 183,000 active users, with an average revenue per user (ARPU) of $28.06. The company’s annualised recurring revenue (ARR) based on Q1 SaaS and transaction revenue stands at around $5.2 million, reflecting steady demand for its Expense8 and CardHero platforms. CardHero, the prepaid card fund distribution solution, contributed $118,000 in revenue and continues to operate cashflow positive.
Financial Position and Outlook
At quarter-end, 8common held a cash balance of $106,000, supported by a $1.5 million unsecured loan facility from Executive Chairman Nic Lim, with $400,000 drawn. The company repaid $50,000 of this facility during the quarter, maintaining financial flexibility. CEO Andrew Bond highlighted that the company’s infrastructure and technology upgrades completed in FY25 have positioned 8common well for growth, with a focus now on expanding product offerings and client segments to sustain positive cashflow and EBITDA for the full year.
Bottom Line?
8common’s Q1 results signal a turning point, but sustaining momentum will depend on continued contract wins and user growth.
Questions in the middle?
- How will 8common’s expanded partner network impact future revenue streams?
- What is the timeline and likelihood for onboarding new federal government users from the pipeline?
- How might the company manage cashflow and financing needs beyond the current loan facility?