Change Financial Limited

Change reported H1 FY26 revenue of USD 9.3 million (AUD 13.3 million), up 29% year over year. Underlying EBITDA was USD 1.8 million versus an underlying EBITDA loss of USD 0.5 million in H1 FY25; excluding U.S. cost-outs, H1 FY26 underlying EBITDA was USD 1.9 million versus USD 400,000 in H1 FY25. The company also reported a maiden half-year profit of USD 600,000. PaaS margins were said to have moved to around 30% from about 26% in FY25, and active cards were up 66% year over year. At 31 December, cash at bank was USD 2.6 million, with USD 1.4 million of cash-backed security deposits, USD 2.5 million of client settlement funds, and USD 2.3 million of scheme settlements payable. FY26 guidance was upgraded in late January to revenue of USD 17.5 million-USD 18.5 million and underlying EBITDA of USD 3.1 million-USD 3.8 million, with cash flow positive guidance maintained for the full year.

Tony Sheehan framed the half as an inflection point, emphasizing operating leverage, margin expansion, and a stronger recurring revenue base. He highlighted growth in Vertexon and PaySim, a stronger partner ecosystem, and a sharper outbound sales motion in Australia, New Zealand, Southeast Asia, and global PaySim markets. He was notably optimistic about Agentic AI, saying it should speed development, onboarding, and customization while strengthening the company’s moat rather than weakening it.

Tom Russell focused on the financial inflection: record revenue of USD 9.3 million, underlying EBITDA of USD 1.8 million, and PaaS margins rising to around 30% as recurring revenue diluted onboarding costs. He pointed to the balance sheet with USD 2.6 million of cash at bank, USD 1.4 million of cash-backed security deposits, and the separate disclosure of USD 2.5 million of client settlement funds offset by USD 2.3 million of scheme settlements payable. He said the U.S. exit is materially complete, cash receipts improved significantly, and H2 should be stronger for cash flow, keeping the company on track for full-year cash flow positive guidance.

Analysts asked how AI and automation will affect sales, marketing, costs, product development, and hiring. Management said AI should help produce content faster, improve lead scoring, reduce implementation friction, speed onboarding, and accelerate roadmap delivery, while noting it is still early to quantify costs and savings; Tom added the tools themselves do not cost a huge amount. They also said the sales pipeline is in good shape, with strong opportunities in Australia and Southeast Asia, PaySim partner wins were net-new partner additions, and the company expects AI to eventually reduce hiring needs because the platform is scalable.