8common Limited reported a positive EBITDA for the first half of FY26 alongside a 4% increase in SaaS revenue, supported by significant operational cost reductions and key contract renewals.
- SaaS revenue up 4% to $1.28 million in 2Q FY26
- 1H FY26 EBITDA positive at $242k (unaudited)
- Operational costs reduced by 20%, with admin and corporate costs down 36%
- NSW Department of Education renews Expense8 contract worth $1.56 million over two years
- Stable user base of 185,000 with ARPU at $27.75
Steady SaaS Growth and Positive Earnings
Fintech firm 8common Limited has reported encouraging financial results for the second quarter of FY26, maintaining operational cash inflow and achieving positive EBITDA for the first half of the fiscal year. The company’s SaaS revenue rose 4% year-on-year to $1.28 million, with a robust gross margin averaging 70%, signalling solid demand for its Expense8 and CardHero platforms.
Despite a 13% decline in total revenue to $1.56 million, 8common’s focus on recurring SaaS and transaction revenue has helped stabilise its core business. The company’s Annualised Recurring Revenue (ARR) stands at approximately $5.1 million, reflecting steady subscription income and transactional activity.
Cost Management and Cash Flow
Operational cost control has been a key highlight, with total expenses down 20% compared to the prior corresponding period. Notably, administration and corporate costs fell by 36%, contributing to a positive EBITDA of $242,000 for the half-year based on unaudited management accounts. This marks the third consecutive quarter of positive cash flow, with net operating cash inflow of $94,000 for 2Q FY26.
Cash reserves remained steady at $0.1 million as at 31 December 2025, supported by a $1.5 million unsecured loan facility from Executive Chairman Nic Lim. The company repaid $91,000 during the quarter, leaving approximately $300,000 outstanding, and retains $1.2 million available for drawdown if needed.
Contract Wins and Operational Highlights
8common secured a significant contract renewal with the NSW Department of Education, extending its Expense8 platform engagement for two years with an estimated value of $1.56 million, plus options for two further one-year extensions. This deal underscores the company’s strong foothold in the government sector.
Additionally, the CardHero prepaid card solution continues to generate positive cash flow, with a $118,000 customer investment contract signed to develop new features. The company also expanded its partner network, onboarding firms Callida and GreenCloud, increasing its partner count to seven.
User Base and Market Position
The user base remained stable at 185,000, with an average revenue per user (ARPU) of $27.75. 8common’s platforms serve a diverse client roster including Woolworths, Broadcast Australia, Amcor, and over 190 government entities, positioning it well within the enterprise and public sectors.
CEO Andrew Bond highlighted that infrastructure upgrades and AI-powered tools have driven cost savings and operational efficiencies, enabling the company to sustain positive cash flow. The firm continues to prioritise new client acquisition and business development efforts as it looks ahead to further growth opportunities.
Bottom Line?
8common’s disciplined cost management and government contract renewals set the stage for cautious optimism, but liquidity remains a watchpoint.
Questions in the middle?
- Will 8common sustain positive EBITDA as it scales client acquisition?
- How will the company manage liquidity given its low cash reserves and reliance on a loan facility?
- What impact will AI-driven infrastructure enhancements have on future operational efficiency and growth?