Novatti Powers Ahead with Fourth Consecutive EBITDA Positive Quarter and $1m Growth Boost
Novatti Group has reported its December quarter results, marking a fourth consecutive EBITDA positive quarter in its Payments AU/NZ business and securing $1 million in strategic growth funding. The company’s stake in AUDC has nearly doubled following a successful Pre-Series A funding round.
- Payments AU/NZ achieves fourth consecutive EBITDA positive quarter with $0.4m
- Group EBITDA slightly negative at -$0.1m; operating cashflow at -$0.3m
- Secured $1m growth funding from Australian Wealth Advisors Group via share placement
- Novatti’s AUDC interest value rises to $16m after Pre-Series A funding round
- Board strengthened with two new financial services leaders appointed
Steady Progress in Core Payments Business
Novatti Group Limited (ASX, NOV) has delivered a notable performance in its December 2025 quarter, with its Payments AU/NZ segment achieving a fourth consecutive quarter of positive EBITDA, registering $0.4 million. This milestone underscores the company’s ongoing commercial traction in a competitive payments landscape, particularly driven by its Issuing business, which saw a 16% revenue increase quarter-on-quarter and a 32% rise year-on-year in transaction volume.
The group overall reported a slight negative EBITDA of -$0.1 million and operating cashflow of -$0.3 million, reflecting continued investment in growth initiatives and corporate overheads. Despite this, Novatti maintains a healthy cash position of $3.7 million, providing a solid runway for its strategic plans.
Strategic Funding and Growth Initiatives
A key highlight of the quarter was the $1 million growth funding secured from Australian Wealth Advisors Group Ltd (AWAG), a subsidiary of Armytage Private, through a share placement. This investment signals confidence from a strategic investor impressed by Novatti’s turnaround and growth pivot. The funds are earmarked to accelerate marketing efforts, bolster sales in the Acquiring business, and enhance product features, aiming to replicate the success seen in Issuing across other core offerings.
Novatti’s strategy to scale its Acquiring business is supported by migrating existing customers onto a new omni-channel platform, improving customer experience and positioning for margin expansion. The company also continues to build a robust pipeline with new contracts and proposals underway, including a renewed contract with a tier-one telecommunications provider.
Growing Value in Digital Finance
Novatti’s investment portfolio also saw significant value appreciation. Its approximately 45% stake in AUDC Pty Ltd, issuer of the AUDD stablecoin, increased to $16 million following AUDC’s successful Pre-Series A funding round. This marks a substantial uplift from the previous $7 million valuation after the Seed Round. AUDD continues to gain market traction, with $1.4 billion in payment volume processed on the Stellar blockchain and becoming the first Australian Dollar stablecoin listed on Coinbase and Swyftx.
Board Enhancements and Governance
Governance was strengthened with the appointment of two seasoned financial services executives, Chris Ryan and Tom Ng, to the board and Audit and Risk Committee. Their extensive experience across APAC and fintech sectors is expected to support Novatti’s scaling and M&A strategies. Meanwhile, the company acknowledged the resignation of non-executive director Killian Murphy, thanking him for his contributions.
Novatti’s convertible note facility remains a key financing instrument, with $3.118 million outstanding and a maturity date in December 2026. The company’s prudent cash management and strategic funding position it well to navigate the evolving payments and digital finance environment.
Bottom Line?
Novatti’s sustained EBITDA momentum and strategic funding set the stage for accelerated growth, but investors will watch closely for continued execution and market expansion.
Questions in the middle?
- How will Novatti’s growth funding specifically impact sales and product development timelines?
- What are the risks and opportunities in scaling the Acquiring business alongside Issuing?
- How might the evolving regulatory landscape affect Novatti’s stablecoin investment and digital finance ambitions?
