Change Financial Limited

FY26 revenue totaled USD 18.2 million, up 21% on FY25. Underlying EBITDA was USD 3.3 million, a 17-fold increase year over year, and the company reported a maiden full-year profit. PaaS active cards ended FY26 at more than 150,000, up from 73,000 at the start of the year; transactions exceeded 21 million, up 17%; and total volume was USD 630 million, up 16%. Recurring revenue was 73% of total revenue, compared with 58% two years ago, and one-off revenue was USD 4.9 million. PaaS gross margins improved by more than 600 basis points versus FY25. For FY27, management expects the onboarding of four contracted clients, four additional clients in final contracting, further PaaS gross margin expansion, and net cash flow positive results.

Tony Sheehan framed FY26 as a milestone year, highlighting the scale-up in PaaS, the move to a more recurring revenue base, and the company’s first full-year profit. He emphasized strategic execution around sales, partner channels, product refreshes, and AI-enabled development, saying these should support faster releases and better conversion in FY27. His tone was constructive and confident, but he also stressed that the business is still scaling rather than fully at scale.

Thomas Russell focused on the financial leverage from a stable fixed cost base and improving PaaS economics. He pointed to cash at bank of USD 3.1 million, plus USD 1.4 million of cash-backed security deposits, client settlement funds of USD 1.7 million, and scheme settlement payables of USD 1.5 million. He also said capex is expected to remain around USD 1.5 million to USD 1.6 million in coming years, and noted a few hundred thousand dollars of one-off restructuring and U.S. liquidation costs, while cash flow improved due to stronger receipts.

Analysts asked about the conversion and timing of four clients in final contracting; management said they expect them to convert, likely over Q1, with go-live typically about six months later and more meaningful revenue contribution in H2. Questions on the 40% to 45% PaaS gross margin target drew the answer that FY26 ended around 35% in H2, improvement should continue through FY27, and the back half should be more meaningful as scale builds. Management also said Hnry volumes are tracking expectations after migration, credit union volumes are flat to low growth, and the large Southeast Asian cloud migrations will be a multiyear process.