Way2VAT Surges to Record $2.13M Quarterly Revenue, Expands Global Client Base

Strong Revenue Growth and Acquisition Integration

Way2VAT Ltd (ASX, W2V), a global fintech leader specialising in automated VAT claim and return solutions, has delivered a robust finish to FY25 with record quarterly revenue of A$2.13 million, marking a 52% increase compared to the same quarter last year. The full year revenue climbed 41% to A$6.51 million, reflecting the company’s accelerating growth trajectory.

This performance was bolstered by the recent acquisition of RBC VAT Limited, a UK-based VAT advisory firm with over two decades of experience. Completed in late September 2025, the acquisition has not only expanded Way2VAT’s footprint in Europe but also enhanced its advisory capabilities, complementing its automated technology platform. RBC’s integration has been smooth, with early synergies realised through cross-selling and cost efficiencies.

Strategic Partnership with Coupa Software

In a significant development, Way2VAT announced a commercial partnership with Coupa Software Incorporated, a leading global business spend management platform. This collaboration will see Way2VAT’s APAI real-time invoice validation product available on the Coupa App Marketplace, enabling seamless integration for Coupa’s enterprise clients. The partnership is expected to open new revenue streams through joint sales efforts and easier adoption by existing clients who use Coupa’s platform.

The integration is on track for completion by the end of Q1 FY26, with a revenue-sharing agreement in place. While the financial impact remains uncertain at this early stage, the partnership aligns with Way2VAT’s strategy to embed its technology within broader procurement and accounts payable ecosystems.

Expanding Enterprise Client Base Across Key Sectors

Way2VAT’s enterprise client base grew from 489 to 501 during the quarter, with notable new contracts signed across pharmaceuticals, e-commerce, and industrial sectors. High-profile clients include Rakuten, a global e-commerce giant; Aptar Group, a major pharmaceutical packaging manufacturer; Apellis Pharmaceuticals, a Nasdaq-listed firm; and Ferroglobe, a leader in metallurgical products.

The pharmaceutical sector is emerging as a core vertical, with several new clients joining alongside existing industry leaders. These contracts, while not expected to generate significant revenue immediately, position Way2VAT well for long-term growth as these relationships mature.

Financial and Operational Considerations

Cash receipts doubled from the previous quarter to A$1.96 million, reflecting improved collections from tax authorities and clients. However, operating expenses rose to A$2.97 million, partly due to working capital management ahead of a recent capital raise. Accounts receivable increased slightly to approximately A$6.4 million, consistent with revenue growth and the inclusion of RBC’s balances.

Way2VAT continues to manage its financing carefully, with outstanding loan facilities decreasing slightly during the quarter. The company secured an additional unsecured bridge loan of A$700,000 in January 2026 to support ongoing operations. Despite a cash runway of less than half a quarter at quarter-end, management expects operating cash burn to decline as revenue growth and cash collections improve.

Looking Ahead

Founder and CEO Amos Simantov expressed confidence in the company’s growth pillars, highlighting ongoing organic expansion, cross-selling opportunities, and a continued search for earnings-accretive acquisitions. The integration of RBC and the partnership with Coupa are expected to be key drivers in 2026, alongside the strengthening of client relationships in strategic sectors.

While the company faces typical early-stage challenges in monetising new contracts and managing cash flow, its technology leadership and expanding global footprint position it well for the next phase of growth.