Change Financial Posts 21% Revenue Growth and 17x EBITDA Surge in FY26

Robust FY26 Financial Performance

Change Financial Limited (ASX:CCA) closed FY26 on a high note, reporting a 21% increase in revenue to US$18.2 million (A$26.0 million) and a remarkable 17-fold jump in underlying EBITDA to US$3.3 million (A$4.7 million). The company’s Q4 revenue of US$4.6 million (A$6.6 million) marked a 16% rise on the prior corresponding period, reflecting sustained momentum in its core Payments as a Service (PaaS) business.

The firm achieved a three-year compound annual growth rate (CAGR) of 28%, more than doubling revenue since FY23. This growth has come alongside a relatively stable fixed cost base, enabling significant operating leverage and a substantial improvement in profitability.

Vertexon PaaS Platform Scales Rapidly

At the heart of Change’s expansion is its Vertexon PaaS platform, which now supports over 150,000 active cards, up 104% year-on-year. June 2026 was a record month, with the highest numbers recorded for active cards, transactions, and gross transaction volume (GTV). PaaS revenue hit US$0.7 million (A$1.0 million) in June alone, contributing to gross margin expansion of 600 basis points to 32% for FY26.

The company is onboarding four contracted clients onto the Vertexon platform, with card programs scheduled to launch in the first half of FY27. Additionally, four more clients are in the final contracting phase, underscoring a strong pipeline poised to drive further revenue growth.

Product Innovation and Geographic Expansion

Change is also advancing its PaySim product, which underwent a modernisation project accelerated by Agentic AI technology. Phase 1 of this upgrade has been piloted, with emerging sales opportunities anticipated to boost future revenues through both direct and partner channels. The company recently sold a new PaySim licence to a tier 1 financial institution, highlighting growing demand.

Geographically, Change continues to expand across Australia, New Zealand, Southeast Asia, and beyond. Its strong relationships with two strategic Southeast Asian clients have led to multiple professional services projects worth US$0.6 million (A$0.9 million) in Q4, with delivery planned over upcoming quarters.

Financial Position and Cost Management

Change ended the quarter with US$3.1 million (A$4.4 million) in cash and no debt, plus US$1.4 million (A$2.0 million) held in cash-backed security guarantees required by payment partners. Operating cash flow remained positive at US$0.6 million (A$0.9 million) for Q4 and US$1.4 million (A$2.0 million) for the full year.

Staff costs increased modestly by 14% year-on-year, partly due to one-off restructuring expenses, but the company expects only modest growth in personnel expenses going forward. Cost savings of approximately US$0.5 million (A$0.7 million) have been identified to offset EBITDA impacts from legacy client off-boarding, expected to reduce net annualised EBITDA by about US$0.75 million (A$1.1 million).

FY27 Outlook and Challenges

Looking ahead, Change anticipates continued growth driven by Vertexon PaaS and PaySim sales, supported by client onboarding and a healthy sales pipeline. The company is focused on migrating two Southeast Asian On-Premises clients to its higher-margin cloud platform, which promises cost efficiencies and scalability.

However, uncertainty remains around the timing of migration for a key Latin American legacy client, which could impact FY27 revenue and EBITDA. The company expects to be net cash flow positive in FY27 and plans to provide updated guidance at its upcoming AGM.