A$2.40m loss leaves Peppermint with A$578,233 net liabilities
Peppermint Innovation has shifted from building its Philippines payments platform to commercialising it, but the FY26 report shows the business remains loss-making, balance-sheet constrained and dependent on future funding. The company reported A$217,720 in revenue, a A$2.40 million net loss and negative net assets of A$578,233.
- A$2.40 million FY26 net loss on A$217,720 revenue
- Operating cash outflow narrowed to A$1.05 million
- PCM registered users rose to 68,828
- QRPh pilot transaction value reached more than PHP150 million in June
- ASX reinstatement and further funding remain unresolved
Losses Persist Despite Payments Commercialisation
Peppermint Innovation Limited (ASX:PIL) is trying to turn a regulated payments platform into a transaction-led business, but its FY26 accounts underline how far that commercial conversion still has to run. Revenue from continuing operations fell to A$217,720 from A$310,864, while the net loss widened to A$2.40 million from A$1.72 million.
The deterioration was not driven by a larger cost base. Administration expenses fell to A$2.27 million from A$2.73 million, but the revenue base remained too small to absorb them. A A$319,536 fair-value loss on derivatives also weighed on the result, compared with a A$254,068 gain in the prior year.
Philippines Platform Gains Regulatory Reach
Management says FY26 marked a strategic shift from platform construction to commercial execution. Peppermint now describes itself as a pure-play digital wallet and payments operator, targeting revenue through Operators of Payment Systems, network aggregators and merchant partners rather than acquiring every merchant relationship directly.
The company holds a Bangko Sentral ng Pilipinas electronic money issuer licence and secured a Merchant Acquisition Licence during the year. InstaPay and QRPh functionality went live during the September quarter, while PESONet testing was completed. The Pinoy Coop Mobile app increased registered users from 46,486 to 68,828 across 199 cooperatives, and cash-in and bill-payment partnerships expanded the physical network to more than 12,000 touchpoints.
There are also early signs of transaction activity, although these figures describe payment flows rather than Peppermint’s recognised revenue. Monthly QRPh person-to-merchant pilot transaction value rose from more than PHP50 million in May 2026 to more than PHP150 million in June. PCM wallet prefunding reached PHP486 million during calendar 2025, followed by PHP468.7 million in the first half of calendar 2026.
Cash Improved, But Most Is Restricted
Cash and cash equivalents increased to A$1.32 million at 30 June, from A$479,186 a year earlier. The more useful operating figure is considerably smaller: only A$429,782 was available for operations, while A$894,272 was restricted wallet cash matched by customer obligations.
Operating cash outflow narrowed to A$1.05 million from A$2.19 million, helped by lower payments to suppliers and employees and increased wallet balances. Financing provided A$1.68 million, including A$2.46 million of share-issue proceeds before A$69,091 in transaction costs and A$706,836 of borrowing repayments. The company also reports a A$2.1 million strategic investment from nominees of Philippine payments companies, Optimal Payments Place and Tsunami Financial Solutions.
Going Concern Depends on Execution and Capital
Peppermint ended the year with current liabilities of A$1.99 million against current assets of A$1.40 million, leaving net current liabilities of A$591,948 and a net asset deficiency of A$578,233. Trade and other payables rose to A$1.46 million, while accumulated losses reached A$31.17 million.
Directors say a 12-month cash-flow forecast supports the going-concern basis, relying on higher revenue from existing and new projects, targeted cost savings and further equity or debt funding. The report makes clear that those outcomes, including their timing, remain uncertain. The group also discloses a PHP14.9 million, approximately A$354,000, legal and tax claim that it is contesting.
FY27 Targets Put Commercial Proof on the Clock
The next phase is focused on a full QRPh merchant rollout, expanding the OPS and aggregator network, continuing the AWS and enterprise-Java migration, growing the cooperative user base and reshaping bizmoLoan into an AI-driven lending model. Peppermint is also continuing its application for reinstatement to trading on the ASX; its shares were suspended at 30 June 2026.
The remaining performance rights make the ambition measurable but demanding. Of 120 million rights granted during the year, 100 million lapsed and 20 million remain, tied to targets including A$4 million of annual revenue, breakeven, A$1 million of net profit and A$4 million of net profit. The immediate question is whether transaction growth can become unrestricted operating cash before the company needs to raise capital again.
Bottom Line?
Peppermint has built a more connected and regulated payments platform, but FY27 must show that rising payment activity can produce enough recurring revenue and operating cash to reduce its reliance on new funding.
Questions in the middle?
- Can QRPh merchant processing convert its early transaction volumes into material recognised revenue?
- How much additional equity or debt funding will be required before the operating business reaches cash-flow breakeven?
- What conditions remain outstanding before Peppermint’s ASX trading reinstatement can progress?
