Way2VAT Delivers 43% Revenue Growth and Broadens Enterprise Client Base in 1H25
Way2VAT (ASX: W2V) has lifted revenue by 43% year-on-year as it continues to sign major multinational clients and deepen its penetration across existing accounts.
The company has combined strong top-line growth with disciplined cost control, narrowing its operating loss despite higher finance expenses tied to funding activities.
Management says the outlook for the second half of 2025 remains positive, underpinned by a backlog of client work and historically stronger September and December VAT reclaim deadlines.
Financial Performance Strengthens
Way2VAT reported revenue of A$2.49 million for the half year to 30 June 2025, up 43% from A$1.73m in the prior corresponding period.
The increase reflected the successful conversion of new client wins into revenue streams ahead of June tax deadlines across multiple jurisdictions.
Gross profit rose 57% to A$2.05m, with gross margin reaching 82% — a level that highlights the scalability of the business model.
Operating expenses declined 7% to A$4.37m, following cost-cutting measures the company introduced in late FY24.
The company narrowed the operating loss by 31% to A$2.33m, while accounts receivable rose to A$5.5m on the back of VAT claims the company has already submitted to tax authorities.
Balance Sheet and Capital Management
Way2VAT ended the half with A$0.86m in cash and equivalents, up from A$0.13m at 31 December 2024.
The improvement followed two successful raisings: A$2.55m via convertible notes – later converted to equity – in January, and a A$2m placement in June at A$0.007 per share.
Subsequent to the period end, the company extended a A$1.2m secured loan with Bank Hapoalim through to August 2026 and also rolled out a A$0.46m bridge loan to October 2025.
Total equity also improved significantly to a positive A$0.18m from a deficit of A$2.1m in the previous period.
Client Growth and Major Contracts
Way2VAT expanded its enterprise client base to 414 from 375 a year earlier, a jump of more than 10%.
A key highlight was securing a global VAT reclaim and APAI Compliance contract with property services giant JLL, covering travel and entertainment as well as accounts payable invoices across more than 80 countries.
Additional work with Solenis Chemical and TikTok reinforced the company’s strategy of deepening relationships with existing clients by cross-selling multiple services.
Chief executive officer Amos Simantov said the results underscored growing demand from multinational companies.
“Increasingly, multinational enterprises are taking advantage of the Way2VAT platform to accelerate automation and streamlining of VAT reclaim processes,” he said.
Technology and Competitive Advantage
Founded in 2016, Way2VAT has positioned itself as the world’s only fintech company automating global VAT reclaim processing through AI and image recognition.
Its patented platform integrates with enterprise expense management systems, enabling automatic extraction, validation and submission of VAT claims across more than 40 countries and in over 20 languages.
The technology suite includes its APAI Compliance tool, which audits accounts payable invoices in real time to reduce errors and improve compliance.
The company holds six patents protecting its core AI-driven technology, giving it a defensible edge against competitors that continue to rely on manual processes.
‘Four Pillar’ Strategy
Way2VAT’s “Four Pillar” growth strategy, which it launched in May 2025, is designed to broaden the company’s offering and accelerate scale.
The pillars include global VAT reclaim, APAI real-time invoice compliance validation, VAT compliance services, and an expansion into real-time e-invoicing.
Mr Simantov said the pipeline of new opportunities remained robust.
“We have a backlog of work requested by existing clients as well as a large pipeline of new opportunities that we are optimistic about closing during the second half of 2025,” he said.
The company expects its traditional seasonal weighting to the second half to continue, with September and December quarter deadlines historically driving stronger revenue.
Organic Revenue Drive
Way2VAT has guided towards sustaining approximately 50% organic revenue growth per year, which – combined with tighter cost discipline, management expects will accelerate the company’s path to profitability.
Mr Simantov said data inflows from both new and existing clients provided visibility for continued momentum.
“This data gives us confidence that it will result in higher volumes of reclaims to process and higher revenues in the second half of 2025,” he said.
Way2VAT remains focused on consolidating its position as a leader in automated VAT and GST technology, leveraging its AI-driven platform and expanding global footprint to capture a share of what it estimates is a US$20 billion annual market in unclaimed VAT refunds.