Complii FinTech Posts 1.7% Quarterly ARR Growth and $1.5m Convertible Note Inflow

Steady ARR Growth Amid Revenue and Cash Flow Challenges

Complii FinTech Solutions Ltd (ASX:CF1) posted a modest 1.7% increase in annual recurring revenue (ARR) on the previous quarter and a 5.9% rise year-on-year, excluding Registry Direct income. Despite this steady growth, customer receipts fell to $1.282 million in Q3 FY26 from $2.021 million in Q2, reflecting some softness in cash inflows. The group ended the quarter with $1.211 million in cash, bolstered by a net $1.349 million inflow from financing activities, primarily the issuance of $1.5 million in Tranche 1 convertible notes carrying a 12% interest rate.

Operating cash outflows remained substantial at $1.165 million, underscoring ongoing cash burn. The company has implemented staff cost reductions expected to save $0.488 million annually starting in Q4 FY26 and launched a ThinkCaddie in-sourcing initiative projected to cut costs by $0.18 million per annum from Q2 FY27. These moves are part of a broader effort to improve operational efficiency and move towards cash flow positivity.

CRM Rebuild and Product Enhancements Drive Strategic Focus

The Complii team advanced development on Stage 2 of its CRM rebuild, aiming to migrate the first major module onto a new core system with a full customer migration planned subsequently. This rebuild follows the completion of Stage 1, which delivered a compliance-driven CRM with enhanced user experience and modular workflows. The new CRM aims to open access to niche compliance markets such as staff trading and Anti-Money Laundering (AML) checks, expanding the addressable market.

Meanwhile, the capital raising system saw enhancements tailored for Tier 1 institutional clients, with development completed and client signings anticipated imminently. The platform facilitated approximately A$4.83 billion in new capital raised across 710 offerings during the quarter, demonstrating ongoing market traction despite revenue fluctuations.

Business Unit Shifts Reflect Regulatory and Market Dynamics

MIntegrity pivoted towards recurring revenue models focused on specialised compliance services for Australian Financial Services Licence (AFSL) holders, driven by increased demand ahead of the AUSTRAC reform deadline in March 2026. The unit expanded AML training content in partnership with ThinkCaddie and launched a compliance subscription service leveraging the Complii Lite platform.

PrimaryMarkets appointed a new CEO to spearhead scaling of liquidity solutions and deepen market presence. The unit actively pursued partnerships with brokers and registry providers to strengthen distribution and platform utilisation, aiming to capitalise on growing demand for private market liquidity solutions.

ThinkCaddie concentrated on content delivery and scalability ahead of the end-of-year CPD peak, transitioning to a sprint-based production model and expanding video and podcast offerings. The launch of an AML training product within the platform attracted positive early demand, particularly from firms training non-CPD staff, with plans for standalone sales in early Q4 FY26.

Financing and Cost Management Underpin Future Sustainability

The $1.5 million raised from Tranche 1 convertible notes, doubling the inflow from the prior quarter, provides vital runway as the company navigates cash flow pressures. A further $0.5 million tranche has been fully subscribed, pending shareholder approval expected in June 2026. The company’s financing facilities include a Westpac term deposit as a bank guarantee for office leases.

Complii’s management acknowledges the current cash runway covers just over one quarter of operating outflows but anticipates improved cash flow performance in Q4 FY26 due to revenue growth and cost savings. The company remains focused on client acquisition, cross-selling, and operational efficiency to achieve sustainable cash flow positivity.

These developments build upon prior capital raising efforts and CRM upgrades, following a series of incremental ARR increases and strategic platform enhancements. The ongoing CRM rebuild and institutional module upgrades signal a push to attract higher-tier clients and diversify revenue streams, while the cost-saving initiatives reflect a pragmatic response to financial headwinds.

Complii’s journey continues to balance investment in technology and compliance innovation with fiscal discipline, aiming to consolidate its position in the competitive capital markets SaaS landscape. The market will be watching how effectively the company converts its pipeline into revenue and manages the migration to its new CRM platform, alongside the impact of regulatory-driven services like AML training.

Notably, the company’s recent $2M convertible note raising and prior CRM upgrade milestones provide context for this quarter’s progress and funding strategy.