Way2VAT Nearly Doubles Revenue as New E-Invoicing Platform Poised for Launch

Revenue Nearly Doubles on Acquisition and Client Expansion

Way2VAT Ltd (ASX:W2V) kicked off FY26 with a striking 95% increase in quarterly revenue to A$2.05 million, nearly doubling its Q1 FY25 result of $1.05 million. Cash receipts surged 106% to $1.7 million, reflecting stronger collections alongside expanding operations. The UK-based RBC VAT Limited acquisition, completed late in FY25, contributed a 17% revenue uplift in its first six months under Way2VAT ownership, confirming the strategic value of the deal. This acquisition has bolstered Way2VAT’s European footprint and advisory capabilities, complementing its automated VAT technology platform. The company’s enterprise client base grew from 501 to 526 during the quarter, adding notable names like VB Spine, Anticimex, and Optima Facilities, although these new contracts are not expected to generate material revenue in their first year.

These gains build on momentum from the previous quarter, where record quarterly revenue set a new benchmark for growth and client acquisition, signaling an accelerating trajectory for Way2VAT’s global fintech ambitions.

E-Invoicing Platform to Address Growing VAT Compliance Demands

Way2VAT is preparing to launch a new e-invoicing platform in Q2 FY26, targeting evolving VAT fraud regulations primarily in Europe and APAC. This platform will unify the processing of structured electronic invoices with unstructured formats, reflecting the patchwork nature of global invoicing mandates. Crucially, it integrates Way2VAT’s AI-powered APAI technology, which extracts and validates data from traditional invoice formats like PDFs and images, positioning the combined solution as a comprehensive compliance tool. This integration aims to simplify invoice management workflows, reduce reliance on multiple tools, and support businesses transitioning toward broader e-invoicing adoption without disrupting existing accounts payable processes.

The platform’s launch represents the company’s fourth pillar of growth, complementing its existing automated VAT reclaim and advisory services. The upcoming commercial partnership with Coupa Software will see Way2VAT’s APAI product available on Coupa’s App Marketplace, enabling seamless integration into clients’ accounts payable invoice flows. The technical integration with Coupa has been completed, with joint marketing activities planned for May, potentially expanding Way2VAT’s reach in the procurement technology ecosystem.

Financial Position and Capital Raising to Support Growth

Despite solid revenue growth, Way2VAT’s operating expenses decreased by 6% quarter-on-quarter to $2.8 million, reflecting operational efficiencies including the integration of RBC revenues and costs. The company’s accounts receivable balance edged up slightly to approximately $7.5 million, consistent with its growing business volume. Financing facilities with Bank Hapoalim increased to $3.93 million during the quarter, with recent repayments of short-term bridge loans indicating active debt management.

In early April, Way2VAT secured firm commitments for a $2.6 million placement to retire short-term debt and fund strategic initiatives, issuing approximately 37 million shares at $0.07 each alongside free attaching options exercisable over three years. This capital injection should ease near-term funding pressures, as the company reported limited cash reserves of $594,000 at quarter-end and an estimated funding runway under half a quarter without further inflows. The placement follows a history of successful capital raises supporting Way2VAT’s growth plans and is expected to underpin continued expansion and technology development.

Payments to related parties, including CEO Amos Simantov, totalled $152,000 during the quarter, reflecting standard executive remuneration.

Outlook Reflects Strong Pipeline and M&A Interest

Way2VAT’s CEO Amos Simantov noted that Q1 is typically the slowest quarter due to client tax deadlines clustering in later quarters. The company anticipates building on this solid start with a robust pipeline of opportunities and multiple tenders underway. The firm is also monitoring potential M&A targets, particularly traditional VAT businesses lacking technology, to accelerate market consolidation and reinforce its automated VAT reclaim platform. This strategy aligns with Way2VAT’s broader ambition to dominate the VAT compliance automation space through intelligent automation and strategic acquisitions.

As the company rolls out its e-invoicing platform and deepens partnerships like that with Coupa, the coming quarters will be critical to translating technological innovation into tangible revenue growth and improved cash flow, a challenge common in fintech firms balancing rapid expansion with capital needs.