8common Limited posted positive EBITDA and net profit before tax in Q4 FY26, secured a major multi-year contract with the Australian Taxation Office, and fully repaid its loan facility.
- Positive EBITDA of $554k in Q4 FY26 and $855k for FY26
- New $1.9 million contract with Australian Taxation Office
- Total revenue down 18% year-on-year due to billing changes
- Loan facility fully repaid, leaving $1.5 million available
- User base grows to over 192,000 with ARPU of $26.62
Profitability Milestone Amid Revenue Dip
Fintech firm 8common Limited (ASX:8CO) has posted positive EBITDA of $554,000 in the June 2026 quarter, marking a significant financial milestone after a full-year EBITDA of $855,000. The company also recorded a net profit before tax of $359,000 for the quarter and $45,000 for the full FY26 year. Despite these gains, total revenue declined 18.7% year-on-year to $1.7 million in Q4 FY26, primarily reflecting a one-off billing schedule change in the prior corresponding period that inflated revenue figures.
New Government Contract Boosts SaaS Footprint
8common secured a major new contract with the Australian Taxation Office (ATO) valued at $1.9 million including GST over three years, signed shortly after the quarter ended. This deal will add over 20,000 users to the company’s Expense8 platform, expanding its government footprint to more than 192,000 users. The company also extended contracts with key federal agencies including the Department of Finance, Department of Home Affairs, and Federal Courts of Australia, underscoring strong revenue retention in its core government segment.
Stable Cash Flow and Loan Repayment
Operational cash flow remains robust with cash receipts from operations of $2.29 million in Q4 FY26 and a net operating cash inflow of $399,000. 8common fully repaid the remaining $305,000 balance of its loan facility provided by Executive Chairman Nic Lim during the quarter, leaving the $1.5 million unsecured facility unused but available through to May 2027. The company’s cash position held steady at $113,000 at quarter end, supported by this facility.
User Growth and Revenue Metrics
The user base expanded 3.8% year-on-year to 192,000 users, although average revenue per user (ARPU) fell 21.7% to $26.62, reflecting the impact of the prior billing adjustment and possibly mix changes. Annualised recurring revenue (ARR) sits at approximately $5.4 million based on June’s SaaS and transaction revenue. SaaS gross margins remain healthy, averaging 84% for the quarter, up from 73.3% in Q4 FY25.
CEO Highlights Growth Strategy
CEO Andrew Bond highlighted the company’s refined product development approach and new growth plans for FY27 aimed at deepening engagement with enterprise and government clients. The company’s flagship Expense8 platform continues to gain traction in the federal government sector, while CardHero, its prepaid card fund distribution solution, remains cashflow positive and is generating renewed pre-sales interest.
Bottom Line?
8common’s positive EBITDA and new ATO contract signal momentum, but sustaining revenue growth and managing cash will be key as FY27 unfolds.
Questions in the middle?
- How will the new ATO contract impact revenue recognition and cash flow in FY27?
- Can 8common reverse the ARPU decline while expanding its user base?
- What are the risks and opportunities in leveraging the $1.5 million unused loan facility?