Way2VAT’s Coupa launch gives its cost-cutting plan a new growth test

Cost cuts take centre stage as revenue remains flat

Way2VAT Ltd (ASX:W2V) is trying to turn a cost-heavy product expansion into a more durable software business after reporting Q3 FY26 revenue of A$1.90 million, almost unchanged from A$1.89 million a year earlier. The more encouraging movement came in client cash receipts, which climbed 84% year on year to A$1.80 million, although the company still recorded a A$1.05 million net operating cash outflow for the quarter.

Management says operating expenses have already fallen 15% since cost-cutting began in September, with a target of up to 20%. Headcount has been reduced from 80 to 58, and quarterly operating expenses are forecast to decline from about A$2.8 million historically to approximately A$2.2 million in the March 2027 quarter. The December quarter is expected to include one-off redundancy and restructuring costs, making the March figure the clearer test of whether the savings are flowing through.

Way2Invoice gains a route into invoice compliance

The company’s growth case now rests partly on converting interest in Way2Invoice, which combines e-invoicing, invoice compliance, VAT reclaim and advisory services on a single platform. Way2VAT says the product serves 20 countries and will use a monthly SaaS model based on the number of invoices processed. It has established a specialised sales capability in Spain, targeting Spain, the UK, Ireland, Benelux and Scandinavia.

APAI Invoice Compliance Validation has also gone live on the Coupa App Marketplace after certification. The product checks supplier details, VAT numbers, rates and invoice content against country-specific rules in more than 40 countries, returning a compliant, warning or non-compliant verdict inside Coupa’s invoice approval workflow. The distribution milestone gives the product access to an established enterprise procurement platform, but the filing does not disclose customer numbers or revenue generated through the marketplace.

The launch builds on the company’s earlier Way2Invoice platform launch, which was reported alongside Q2 revenue growth. Way2VAT now says several new and existing clients are evaluating the expanded offering, with commercial discussions under way; the next step is converting those evaluations into contracts and billable invoice volumes.

New contracts add potential, but timing remains unproven

Way2VAT has signed a three-year VAT reclaim agreement with a US-based data company employing more than 5,000 people and reporting revenue of US$6 billion, according to the announcement. The contract covers more than 20 countries and could allow recovery of up to four years of unclaimed VAT, with revenue expected before the end of 2026. The company cautions that the materiality of the opportunity will depend on expense data still being received.

It also signed Garage Films in Spain for local VAT reclaim services, a contract Way2VAT says should support faster collection because it invoices the client directly after delivering the service. Separately, its Go-Global partnership has built infrastructure to onboard merchants seeking VAT registrations in Europe and the UK as they sell through a major social media marketplace. These opportunities are commercially promising on paper, but the filing provides no revenue guidance for either stream.

Cash runway is measured before the latest acquisition payment

Cash stood at A$3.05 million at 30 September, with the Appendix 4C indicating approximately 2.9 quarters of funding based on the quarter’s operating cash usage. That snapshot does not include the £880,000 payment made to the RBC vendors on 1 October for the second acquisition tranche. The payment was funded through existing cash and Bank Hapoalim borrowings, while total drawn loan facilities rose to A$5.20 million from A$4.94 million during the quarter.

Way2VAT also extended a previously unsecured A$703,000 bridge loan by four months to 28 February 2027. With the company still relying on future product conversions, new-client revenue and the full delivery of its cost programme to narrow the cash gap, the March 2027 expense target is likely to matter as much as the next headline contract.