Spenda Limited reported a significant reduction in its half-year net loss to $6 million, alongside a doubling of payment transaction volumes, as it restructures leadership and refocuses its core software and payments products.
- Half-year net loss narrowed 36% to $6.04 million
- Revenue declined 15% to $4.19 million
- Payment transactions processed surged to $431 million
- Secured $3.5 million convertible loan facility and $1.4 million private placement
- Board and executive leadership restructured, new CEO appointed
Financial Performance and Challenges
Spenda Limited has reported a half-year net loss of $6.04 million for the period ending 31 December 2025, marking a notable improvement from the $9.39 million loss recorded in the same period last year. Despite this progress, revenues fell by 15% to $4.19 million, reflecting ongoing margin pressures as the company’s payment processing activities, which carry structurally lower margins than lending, have grown.
The company’s cost of services rendered more than doubled, primarily due to the inclusion of Limepay payment processing costs for a full half-year. This shift contributed to a decline in gross margin, underscoring the operational challenges Spenda faces as it scales its payments infrastructure.
Operational Highlights and Product Focus
Spenda continues to strengthen its core product suite comprising Spenda Retail, Spenda Pay, and Spenda Ledger. These integrated software and payments platforms are designed to streamline business-to-business and business-to-consumer transactions, with features ranging from retail management and invoice payments to embedded payments and lending solutions for marketplaces and ecommerce platforms.
Customer adoption accelerated during the period, supported by partnerships with major players such as Carpet Court Australia, Capricorn Society, and APGPay. Notably, payment transaction volumes processed more than doubled to approximately $431 million, driven by acquisitions and expanded platform capabilities.
Funding and Capital Initiatives
To support its growth and operational needs, Spenda secured a $3.5 million convertible loan facility with Obsidian Global GP, LLC, alongside a $1.4 million private placement from sophisticated investors. These capital injections are critical as the company navigates a net current asset deficiency and cash outflows from operations exceeding $4.8 million in the half-year.
The company also received a $2.54 million R&D tax incentive rebate post-period, providing some relief to its cash position. However, the auditors have highlighted a material uncertainty regarding Spenda’s ability to continue as a going concern, given its cash flow deficits and working capital challenges.
Leadership and Governance Changes
Significant changes in Spenda’s leadership occurred during and after the reporting period. Corrie Hassan was appointed Chief Executive Officer, having served in an interim capacity since September 2025. Karim Razak took over as Executive Chairman in February 2026, following a board restructure that saw several director transitions, including the stepping down of the former Non-Executive Chairman and the appointment of new directors.
These governance changes align with the company’s strategic focus on operational efficiency, product rationalisation, and stronger market positioning.
Looking Ahead
Spenda’s short-term roadmap includes enhancements to its core platforms aimed at improving user experience, expanding market reach, and unlocking new revenue streams. The company plans to implement cost reductions, optimise working capital, and pursue further capital raising initiatives to secure its financial footing.
While the company’s progress in reducing losses and growing transaction volumes is encouraging, the path to sustained profitability and liquidity remains contingent on successful execution of these strategic and financial initiatives.
Bottom Line?
Spenda’s improved loss position and growing payment volumes offer hope, but funding and execution risks loom large.
Questions in the middle?
- Will Spenda secure the additional funding needed to sustain operations beyond 2026?
- How will the new leadership team impact the company’s strategic direction and execution?
- Can Spenda convert its growing payment volumes into sustainable profitability amid margin pressures?