Peppermint Innovation Limited posted a $2.4 million net loss for FY26 as it shifted from platform development to commercial execution in the Philippines, achieving key regulatory milestones and securing strategic investment.
- Net loss widened 36% to $2.4 million
- Revenue declined 30% to $218,000 amid transition
- Achieved full interoperability with Philippine payment networks
- Raised $2.8 million net from share issues and $2.1 million strategic investment
- Merchant Acquisition Licence granted by Bangko Sentral ng Pilipinas
Losses deepen as Peppermint pivots to commercial phase
Peppermint Innovation Limited (ASX:PIL) recorded a net loss of $2.4 million for the year ended 30 June 2026, a 36% increase from the prior year’s $1.7 million loss. The widening deficit comes as the company transitions from building its mobile banking platform to executing commercial operations in the Philippines.
Revenue from continuing operations fell 30% to $218,000, reflecting the shift away from development contracts towards transaction-led income streams. Despite the revenue decline, Peppermint achieved several important operational milestones during the year.
Key regulatory and commercial milestones in Philippines market
The company successfully integrated with the Philippines’ national payment networks, achieving full interoperability with InstaPay and QRPh real-time payment systems. Testing on PESONet, the high-value transfer network, was also completed, positioning Peppermint for broader market participation.
Notably, Peppermint secured a Merchant Acquisition Licence (MAL) from the Bangko Sentral ng Pilipinas (BSP), enabling it to onboard merchants accepting QRPh payments directly via its bizmoto digital wallet platform. This regulatory approval is a critical enabler for scaling transaction volumes and merchant acquisition.
Meanwhile, the Coop Health Management Federation renewed its 1CoopHealth System licence for another year at an increased annual fee, securing recurring revenue. Peppermint also expanded its cash-in and bill-payment network through partnerships with ECPay and BTI Payments, extending physical touchpoints to over 12,000 locations nationwide.
Capital raising and funding dispute resolution support growth ambitions
Cash and cash equivalents increased to $1.3 million at year-end, bolstered by net proceeds of $2.8 million from share issues and a $2.1 million strategic investment from Philippine payments companies Optimal Payments Place Inc. and Tsunami Financial Solutions Inc. This injection validates Peppermint’s regulated infrastructure and provides growth capital for commercialisation.
The company also resolved a previously disclosed monetary dispute with Obsidian Global GP LLC, with final settlement payments completed in April 2026. This removed a significant funding overhang and cleared the way for renewed investor confidence.
Operational progress and platform investments
Peppermint’s registered user base for its Pinoy Coop Mobile (PCM) app grew from 46,486 to 68,828, spanning 199 cooperatives within the MASS-SPECC network. Monthly transaction values processed through its QRPh Person-to-Merchant pilot surged from over ₱50 million in May 2026 to more than ₱150 million in June 2026, illustrating rapid uptake.
The company is also investing in platform security and scalability, migrating core infrastructure to Amazon Web Services and adopting an enterprise-grade Java architecture to support higher transaction volumes and production stability.
Financial position and outlook considerations
Despite the operational progress, Peppermint reported negative net tangible assets of $578,000 and continues to incur losses, with net cash used in operating activities of $1.05 million. Directors remain confident in the company’s ability to continue as a going concern, citing cash flow forecasts that incorporate increased revenue from existing contracts, new projects, and targeted cost savings.
The company anticipates accessing further funding through equity or debt raisings as needed to support its commercialisation trajectory. Share-based payments of $18,867 were recognised related to performance rights granted to key management personnel, aligned with future revenue and profitability milestones.
Bottom Line?
Peppermint’s FY26 results highlight the financial strain of transitioning to commercial operations in the Philippines payments sector, with upcoming revenue growth and funding execution critical to sustaining momentum.
Questions in the middle?
- Will Peppermint’s transaction volumes scale sufficiently to reverse revenue declines?
- How will the company manage cash burn while investing in platform scalability?
- What is the timeline and likelihood for successful ASX reinstatement amid ongoing capital needs?