8common Narrows Loss but Faces Going Concern Questions Amid Liabilities

Financial Performance Overview

8common Limited, a fintech company specialising in financial transaction and payment management platforms, has released its half-year results for the period ending 31 December 2025. The company reported total revenue of $3.23 million, down 14% from the previous corresponding period. This decline was primarily due to reduced implementation revenue, a non-recurring component of their income.

Despite the revenue dip, 8common achieved a notable turnaround in profitability metrics. EBITDA swung from a loss of $318,420 in the prior period to a positive $248,215, reflecting improved operational efficiency and cost management. The net loss after tax narrowed significantly to $171,404 from $698,975, signalling progress towards financial stability.

Growth in Core SaaS Revenue and User Base

The company’s core Software-as-a-Service (SaaS) revenue grew 6% year-on-year to $2.57 million, driven by an increase in platform users to 185,000. Average Revenue Per User (ARPU) remained steady at $27.85, with Federal Government clients delivering a higher ARPU of $41.66. This segment’s expansion, including onboarding new government agencies, is a key growth driver for 8common’s recurring revenue streams.

8common’s flagship products, Expense8 and CardHero, continue to gain traction among large enterprises and government entities. Notably, the NSW Department of Education renewed its Expense8 contract for two years, with options extending the deal’s value to an estimated $3.54 million. The company also expanded its partner network, adding firms like Callida and GreenCloud to its ecosystem.

Operational Efficiency and Cash Flow Improvements

Operational cost reductions were a highlight of the period, with a 28% decrease in cost of services and a 23% reduction in total expenses compared to the prior half. These savings were achieved while SaaS revenue grew, underscoring management’s success in optimising the business. As a result, 8common reported a positive net operating cash inflow of $148,277, a marked improvement from an outflow in the previous period.

The company’s cash position stood at $109,296 at the half-year mark, supported by a $1.5 million financing facility from the Executive Chairman. This facility provides a financial buffer, with $1.2 million still available for drawdown, ensuring liquidity as the company pursues growth initiatives.

Outlook and Going Concern Considerations

While 8common’s directors acknowledge material uncertainties related to the company’s going concern status, given net current liabilities exceeding $1.5 million, they remain confident in the business’s trajectory. Multi-year contracts with government clients underpin recurring revenue, and management expects continued user growth, particularly within the Federal Government sector, to drive ARPU and revenue expansion.

Cost efficiencies implemented over the past year have stabilised the operating cost base, which is expected to hold steady over the next 18 months. The company’s strategic focus on expanding its government and enterprise footprint positions it well for sustainable positive cash flow and improved financial strength.