Change Financial Delivers 21% Revenue Growth on Continued PaaS Platform Scale

Change Financial (ASX: CCA) delivered unaudited FY26 revenue of A$26.0m, up 21% on the previous year and in line with its upgraded guidance.

Underlying EBITDA reached A$4.7m, representing 17 times the FY25 result and also meeting upgraded guidance.

4Q revenue rose 16% against the prior corresponding period to A$6.6m, while net cash flow from operating activities was positive at A$0.9m and reached A$2.0m for FY26.

Growth in Change’s platform-as-a-service (PaaS) operations helped lift active cards above 150,000 and supported record June results for cards, transactions, transaction volume, and PaaS revenue.

Change closed the year with A$4.4m in cash, no debt, and a further A$2.0m held in cash-backed security guarantees.

Platform Scale Drives Margins

Active cards on the Vertexon PaaS platform increased 11% during the quarter and 104% over the year, driven largely by Hnry’s Australian and New Zealand migration, new cards for a New Zealand wealth management client, and prepaid-card growth from an employee benefits client.

The number of transactions processed rose 23% against the prior corresponding period and transaction volume increased 19%, with June producing a monthly PaaS revenue record of A$1.0m.

Recurring streams generated 76% of fourth-quarter revenue and 73% of FY26 revenue, while PaaS gross margins expanded by 600 basis points from 26% to 32% across the year as the platform scaled.

Change sold two new Vertexon licence tiers and five professional services projects worth A$0.9m during the quarter, with four contracted PaaS clients now onboarding and another four clients in final contracting.

PaySim and Migration Outlook

Change sold a new PaySim licence to a tier-one financial institution and released the first phase of its product modernisation in pilot mode to selected clients.

Completion of the broader enhancement project is now targeted for FY27.

Management expects FY27 growth to come mainly from Vertexon PaaS and PaySim sales, supported by four contracted clients scheduled to launch card programs during the first half and the additional prospects nearing final agreements.

The business is continuing efforts to migrate two Southeast Asian Vertexon On-Premises clients to its higher-margin cloud offering, although several legacy clients that will not migrate currently generate about A$2.8m in combined annualised revenue.

Change has identified about A$0.7m in cost savings to offset part of the legacy-client revenue loss and estimates the net annualised EBITDA effect at about A$1.1m, with a smaller FY27 impact expected because the timing of a major Latin American client’s transition remains uncertain.

PaaS the Key Driver

Chief executive officer Tony Sheehan said that the company’s PaaS operations continued to be a key growth driver.

“With a strong FY26, we have more than doubled the size of the revenue of the company over the past three years, delivering a compound annual growth rate of 28%,” he said.

“As we look forward to FY27, we enter the year with strong momentum in the PaaS business, with clients already onboarded and growing, contracted clients currently onboarding, and a strong pipeline of new deals.”

“We are also entering an exciting period for PaySim with the recent release of the first phase of the product modernisation project.”

Change expects to be net cash flow positive in FY27, excluding funds required for PaaS security deposits or future strategic initiatives, and plans to provide further guidance at or before its annual general meeting.