Change Financial has reported a robust first half of FY26, with revenue and EBITDA surpassing expectations, prompting an upgraded full-year guidance and signalling a key milestone in cash flow positivity.
- H1 FY26 revenue up 29% to US$9.3 million
- Underlying EBITDA improves to US$1.8 million from prior loss
- FY26 revenue guidance raised to US$17.5–18.5 million
- Underlying EBITDA guidance increased by 15% at midpoint
- Company expects to be net cash flow positive in FY26
Strong Start to FY26
Change Financial Limited (ASX, CCA) has kicked off FY26 with a performance that exceeded its own expectations. The company reported unaudited revenue of US$9.3 million (A$13.9 million) for the first half, marking a 29% increase compared to the same period last year. This growth reflects sustained momentum following consecutive record revenue quarters, including a strong Q2 result of US$4.7 million.
Underlying EBITDA also showed a remarkable turnaround, reaching US$1.8 million (A$2.7 million) in H1 FY26, a significant improvement from the US$0.5 million loss recorded in H1 FY25. This shift highlights the emergence of operating leverage as Change scales its business.
Upgraded FY26 Guidance
Buoyed by this strong start, Change Financial has upgraded its full-year FY26 guidance. Revenue is now expected to fall between US$17.5 million and US$18.5 million (A$26.1 million to A$27.6 million), while underlying EBITDA guidance has been raised to a range of US$3.1 million to US$3.8 million (A$4.6 million to A$5.7 million). This represents a 15% increase at the midpoint compared to previous forecasts.
The company’s ability to improve profitability while growing revenue underscores its strategic investments in product development, technology, and talent. Change aims to maintain a revenue compound annual growth rate (CAGR) exceeding 20% over the medium to long term, with the three-year CAGR now increased to 25% as of H1 FY26.
Cash Flow Positivity and Operating Leverage
Another milestone for Change Financial is its expectation to be net cash flow positive for FY26. The company maintains a healthy cash position and operates without debt, marking a significant inflection point in its lifecycle. This transition to positive cash flow signals that Change is not only growing but doing so sustainably, with improved operational efficiency.
While professional services and licence revenue contributed above historical levels in H1, these are one-off in nature and subject to timing variability. The company continues to hold a strong sales pipeline entering the second half, though precise revenue recognition remains challenging to forecast on a quarterly basis.
Positioning in the Fintech Landscape
Change Financial operates in the fintech space, providing payment solutions, card issuing, and testing services to banks and fintechs globally. Its Vertexon platform integrates seamlessly with core banking systems to deliver digital and virtual card solutions, including support for Apple Pay, Google Pay, Samsung Pay, and Buy Now Pay Later services. The company currently manages over 45 million cards worldwide, serving more than 150 clients across 40 countries.
With its PaySim testing platform, Change also helps clients ensure the reliability and performance of their payment systems, a critical service in an increasingly digital financial ecosystem. The company’s continued growth and improved financial metrics position it well to capitalize on the expanding demand for flexible, scalable payment technologies.
Bottom Line?
Change Financial’s upgraded guidance and cash flow positivity mark a pivotal moment, but investors will watch closely how revenue recognition and pipeline conversion unfold in H2 FY26.
Questions in the middle?
- How will Change manage the timing risks associated with one-off professional services revenue?
- What are the key drivers behind the improved operating leverage and EBITDA growth?
- Can Change sustain its elevated revenue growth rate amid increasing fintech competition?