Way2VAT Ltd reported a strong 46% revenue increase for FY25, driven by a surge in enterprise clients and a strategic acquisition that deepens its European presence. Despite a narrower net loss, the company’s transition to a SaaS-focused model and recent capital raises set the stage for future growth.
- 46% revenue growth to AUD 6.6 million in FY25
- 27% increase in enterprise clients including JLL, Savills, and Rakuten
- Acquisition of UK-based RBCVAT Limited completed in September 2025
- Net loss narrowed by 14% to AUD 4.8 million despite acquisition costs
- Raised over AUD 8.6 million through placements and convertible notes
Revenue Growth and Client Expansion
Way2VAT Ltd has delivered a notable 46% increase in revenue for the financial year ended 31 December 2025, reaching AUD 6.6 million compared to AUD 4.6 million in the prior year. This growth was underpinned by a 27% rise in enterprise clients, now totaling 501, with marquee names such as global real estate giants JLL and Savills, pharmaceutical leaders Aptar Group and Apellis, commodities supplier Trafigura Group, and ecommerce powerhouse Rakuten joining the roster.
Strategic Acquisition Strengthens European Presence
In a significant strategic move, Way2VAT completed the acquisition of RBCVAT Limited, a UK-based VAT advisory and compliance specialist with over two decades of operational history. Finalised on 30 September 2025, the deal enhances Way2VAT’s advisory capabilities and complements its automated technology platform, marking a key step in expanding its footprint across Europe. The acquisition was funded through a well-supported capital raising, including a $4.1 million placement in September 2025, supplemented by earlier convertible notes and share placements.
Financial Performance and Cost Management
Despite the acquisition-related expenses and one-off costs, Way2VAT narrowed its net loss by 14% to AUD 4.8 million. Excluding these acquisition and performance-based option expenses, the underlying business achieved a 5% reduction in costs on a like-for-like basis compared to FY24. This reflects disciplined cost management amid the company’s transition towards a business model with four distinct revenue streams and a greater emphasis on recurring SaaS revenues.
Capital Raising and Balance Sheet Position
To support its growth and acquisition strategy, Way2VAT raised over AUD 8.6 million during 2025 through placements and convertible notes, attracting strong interest from institutional and sophisticated investors. The company ended the year with total assets of AUD 12.3 million and a net tangible asset position improving to negative AUD 0.008 per share from negative AUD 0.036 per share in 2024. No dividends were declared, consistent with the company’s focus on reinvestment and expansion.
Looking Ahead
The preliminary results are subject to audit, with the final report expected by 31 March 2026. Investors will be watching closely to see how the integration of RBCVAT unfolds and whether the company can leverage its expanded advisory capabilities and SaaS model to drive profitability in the coming years.
Bottom Line?
Way2VAT’s FY25 performance and strategic acquisition position it for growth, but execution risks remain as it integrates new assets and shifts its business model.
Questions in the middle?
- How effectively will Way2VAT integrate RBCVAT’s operations and culture?
- What impact will the shift to a SaaS-focused model have on future profitability?
- Will further capital raises be necessary to support ongoing expansion?