Change Financial has confirmed meeting its upgraded FY26 revenue and underlying EBITDA targets, powered by strong growth in its Australian and New Zealand PaaS business. The company enters FY27 with record monthly metrics but holds back on full-year guidance amid client migration uncertainties.
- FY26 revenue rose 21% to US$18.2 million
- Underlying EBITDA surged 17-fold to US$3.3 million
- Record June month for PaaS active cards and transactions
- FY27 guidance withheld due to legacy client churn and onboarding
- Plans to switch financial reporting to AUD from July 2026
FY26 Results Confirm Upgraded Guidance
Change Financial Limited (ASX:CCA) has delivered on its upgraded FY26 guidance with unaudited revenue hitting US$18.2 million (A$26.0 million), a 21% increase on FY25. Underlying EBITDA soared to US$3.3 million (A$4.7 million), a remarkable 17-fold jump from the prior year, underpinning the company’s maiden EBITDA positive year in FY25. The Q4 FY26 quarter alone contributed US$4.6 million in revenue and US$0.8 million in underlying EBITDA, reinforcing strong operating leverage.
PaaS Growth Fuels FY27 Momentum
Entering FY27, Change is riding robust momentum in its Payments as a Service (PaaS) platform across Australia and New Zealand. June marked record highs for active cards, transaction volumes, and gross transaction volume processed through the Vertexon platform, alongside a peak month for PaaS revenue. Existing clients and those currently onboarding are expected to drive sustained growth, with several new PaaS deals in late-stage contracting. The company anticipates ongoing margin expansion as its PaaS operations scale.
Legacy Client Migration Clouds FY27 Guidance
Despite the positive outlook, Change is cautious on FY27 revenue and EBITDA guidance due to expected churn in legacy On-Premises clients, primarily in LATAM, as they transition away from older Vertexon code bases. Discussions continue with key Southeast Asian clients about migrating to the cloud-based Vertexon PaaS platform, with one client partially migrated. These shifts introduce short-term revenue uncertainty and one-off impacts on legacy Vertexon income, prompting the company to withhold full-year guidance until greater clarity emerges.
Strategic Initiatives and Reporting Changes
Change is aggressively integrating agentic AI to accelerate product development cycles, enabling faster rollout of new features to support growth. The company is also actively exploring strategic M&A opportunities aligned with its growth ambitions. Additionally, following the wind-down of its US operations, the board has resolved to transition financial reporting from USD to AUD starting 1 July 2026, aiming to provide investors with clearer insight into the company’s financial performance.
Bottom Line?
FY27 holds promise with PaaS growth and AI-driven innovation, but legacy client churn injects caution ahead of updated guidance.
Questions in the middle?
- How quickly will legacy On-Premises clients complete migration to the Vertexon PaaS platform?
- What impact will agentic AI adoption have on product delivery timelines and customer acquisition?
- Which strategic M&A opportunities is Change Financial prioritising to complement its PaaS expansion?