Spenda Limited reported a record $204 million in payment volumes for Q1 FY26 alongside a strategic cost reduction of 21% annualised. The quarter also saw a significant leadership change with the resignation of its Managing Director.
- Record payment volumes of $204 million in Q1 FY26, up 88% year-on-year
- 21% annualised cost savings achieved through restructuring
- Managing Director Adrian Floate resigns due to health reasons; interim CEO appointed
- Cash receipts steady at $2.1 million for the quarter
- Executed $3.5 million convertible note facility to support operations
Strong Start to FY26 with Record Payment Volumes
Spenda Limited (ASX, SPX), a technology company specialising in workflow software and embedded finance solutions, kicked off FY26 with a notable performance. The company reported total payment volumes (PV) of $204 million for the quarter ended 30 September 2025, marking an 88% increase compared to the same period last year. This surge underscores Spenda’s growing footprint in supply chain payments and embedded finance.
Cash receipts also remained robust at approximately $2.1 million, reflecting steady revenue inflows despite ongoing market challenges. The company’s focus on building recurring income streams appears to be gaining traction, providing a more predictable financial base.
Cost Rationalisation and Leadership Transition
In a bid to improve operational efficiency, Spenda implemented a restructuring program that has delivered $177,000 in monthly cost savings, equating to $2.1 million annually or a 21% reduction in operating cash outflows compared to FY25. This disciplined approach to cost management is central to the company’s strategy to achieve sustainable positive cash flow.
However, the quarter was also marked by a significant leadership change. Managing Director and CEO Adrian Floate resigned unexpectedly due to personal health reasons. The board appointed Corrie Hassan as interim CEO, who has emphasized tightening operational discipline and accelerating commercialization of existing products. Additionally, Francis De Souza joined as an Executive Director, signaling a refreshed leadership team focused on scaling the business efficiently.
Product Developments and Strategic Partnerships
Spenda continues to advance its product suite with key developments in its APG Pay platform and SwiftStatement program. The APG Pay partnership, which targets corporate travel customers across Australia, New Zealand, Hong Kong, and Singapore, processed over $50 million in payments during the quarter. Plans are underway to expand this platform into additional industry verticals.
Meanwhile, the SwiftStatement program, designed to enhance accounts payable processes with AI-driven invoice capture, is undergoing strategic refinement. Although adoption has been slower than anticipated, the company is piloting new features with its existing user base and plans a broader rollout in early 2026.
Financial Position and Outlook
Spenda ended the quarter with $3.2 million in cash and cash equivalents, supported by a $3.5 million convertible note facility secured with Obsidian Global GP LLC. This financing provides a buffer as the company continues to focus on cost control and revenue growth.
Interim CEO Hassan highlighted the company’s commitment to simplifying operations and scaling recurring revenue streams. Despite not reaching breakeven in FY25, the company’s strategic cost reductions and product commercialization efforts aim to build a solid foundation for growth in FY26.
Bottom Line?
Spenda’s record payment volumes and cost cuts set a promising stage, but leadership changes and product adoption challenges will test its momentum in the coming quarters.
Questions in the middle?
- How will the interim CEO’s strategic focus impact Spenda’s path to profitability?
- What is the timeline and expected impact of the SwiftStatement enhancements on customer adoption?
- How will the company leverage the $3.5 million convertible note to fuel growth and product expansion?