Spenda Limited boosted revenue by 10% to $8.78 million in FY26 but still posted a $24 million net loss, reflecting ongoing challenges despite a strategic divestment and cost-cutting drive.
- 10% revenue increase to $8.78 million
- Net loss narrows slightly to $24 million
- Divestment of lending business to APG Pay
- Annualised cost savings of ~$4.8 million
- Raised capital via placements and convertible notes
Revenue Growth Masks Persistent Losses
Spenda Limited (ASX:SPX) posted a 10% rise in revenue to $8.78 million for the year ended 30 June 2026, driven by growth in its SaaS and payments segment. However, the company’s net loss after tax remained substantial at $24.02 million, only marginally improved from the $24.31 million loss in the prior year. This continued loss underscores the uphill battle Spenda faces in turning its business around despite operational improvements.
Strategic Divestment and Product Refocus
In a significant strategic move, Spenda divested its lending business, including the Spenda Ledger platform, to APG Pay for $1.8 million in May 2026. This sale marked the exit of its lending cash-generating unit, which had been a drag on the company’s finances, and resulted in a loss on disposal of nearly $9 million. Post-divestment, Spenda now operates primarily as a single cash-generating unit focused on SaaS and payments.
The company also relaunched Spenda Pay as an AI-powered accounts payable platform, aiming to streamline invoice processing and enable payments via existing credit cards with rewards integration. This pivot towards scalable, technology-driven offerings is a core part of Spenda’s turnaround strategy.
Cost Cutting Delivers Annualised Savings of $4.8 Million
Spenda aggressively reduced its cost base during FY26, achieving cumulative annualised savings of approximately $4.8 million by June 2026. These savings stemmed from headcount reductions, contractor changes, and lowered subscription and infrastructure expenses. Management reported monthly savings of around $400,000 since May 2026, reflecting a disciplined approach to matching overheads with current revenue levels.
Capital Raises and Convertible Notes Support Working Capital
To bolster its balance sheet, Spenda completed several capital raising initiatives, including private placements totaling $2.8 million, a share consolidation on a 20:1 basis, and a $3.5 million convertible note facility with Obsidian Global Partners LLC. The convertible notes carry a variable conversion price linked to future share prices and include embedded derivatives accounted for at fair value, adding complexity to the company’s financial structure.
These capital injections provide Spenda with runway to execute its strategic plans, though the company remains in a net current liabilities position of $773,000 as at 30 June 2026.
Impairment Charges Reflect Ongoing Asset Write-Downs
Spenda recognised a $6.46 million impairment charge on intangible assets related to its SaaS and payments CGU, reflecting delays in contracted and forecast revenue. The company’s goodwill and software assets were fully impaired as at 30 June 2026, wiping the intangible asset balance to nil. This follows prior impairments and highlights the challenges in realising the value of past acquisitions and technology investments.
Governance and Leadership Changes
The year saw notable board and management turnover, with the resignation of Managing Director Adrian Floate and several directors throughout FY26. Niv Dagan was appointed Non-Executive Chairman in July 2026, bringing capital markets and asset management experience. The refreshed leadership team faces the task of steering Spenda through its turnaround and growth phases.
Going Concern Uncertainty Remains
The company’s auditor issued an unqualified opinion with an emphasis of matter on going concern, citing Spenda’s operating losses, cash outflows of $7.26 million, and net current liabilities. While the directors believe the company can meet its obligations through planned initiatives, including further cost reductions, asset sales, and capital raises, material uncertainty persists.
Spenda’s ability to execute its strategic plan, grow revenues sustainably, and manage cash flow will be critical to resolving this uncertainty.
Bottom Line?
Spenda’s FY26 results reveal progress on revenue and cost fronts but underline persistent losses and asset impairments, leaving its turnaround fragile and dependent on execution and capital markets.
Questions in the middle?
- Can Spenda sustain revenue growth from its AI-powered Spenda Pay platform to offset legacy losses?
- Will ongoing cost-cutting measures stabilize cash flow without impairing growth capabilities?
- How will the convertible note structure impact shareholder dilution and future capital raising flexibility?