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Change Financial Limited (ASX:CCA), the Australian fintech software and payments platform provider, announced its Q4 FY26 update, revealing full-year revenue of US$18.2 million, a 21% year-over-year rise, alongside an underlying EBITDA of US$3.3 million, marking a 17-fold increase compared to the previous year. The company generated positive operating cash flow of US$1.4 million for the year and recorded unprecedented growth in its Platform-as-a-Service (PaaS) segment, with over 150,000 active cards on the Vertexon platform—a 104% increase from the prior corresponding period. These results met the company’s upgraded FY26 guidance and position Change Financial for strong momentum entering FY27 across its core payment processing and issuing operations.
Key Points
- Brisbane-based Change Financial Limited (ASX:CCA) delivers payment processing, issuing, and simulation platform solutions to financial institutions and fintechs worldwide.
- FY26 revenue hit US$18.2 million (A$26.0 million), up 21% year-on-year, fulfilling upgraded guidance and achieving a 3-year revenue CAGR of 28%.
- Underlying EBITDA surged to US$3.3 million in FY26, a 17-fold increase from FY25, with gross margin expanding by 600 basis points due to scaling benefits in the PaaS business.
- Active cards on the PaaS platform exceeded 150,000, up 104% year-on-year, with June FY26 setting records for active cards, transactions, and gross transaction volume; four PaaS clients are in final contracting stages targeting card program launches in H1 FY27.
Exceptional PaaS Growth Fuels Core Business Expansion
Change Financial’s Platform-as-a-Service (PaaS) segment was the main growth driver in FY26, showing remarkable gains across all key operational metrics. The Vertexon platform’s active cards surpassed 150,000 in Q4 FY26, reflecting 104% year-over-year growth and an 11% sequential increase from Q3. This growth stems from the maturation of card processing and issuing services across Change’s expanding client base in Australia and New Zealand, notably driven by the migration of approximately 70% of Hnry’s customer cards to the Change platform as of 30 June 2026.
The PaaS business’s strength is also evident in its revenue quality and diversity. Recurring revenue streams, including Support & Maintenance and PaaS transaction fees, accounted for 73% of total FY26 revenue. June 2026 was a record month for PaaS revenue, reaching US$0.7 million (A$1.0 million), alongside record active card counts and transaction volumes. This recurring revenue growth enhances Change’s scalable and predictable revenue model, reducing reliance on one-time license sales and professional services.
Financial Results Surpass Upgraded FY26 Guidance with Positive Operating Cash Flow
Change Financial exceeded its FY26 guidance by posting US$18.2 million in revenue, a 21% increase over FY25. The company’s underlying EBITDA soared to US$3.3 million, a 17-fold rise from the prior year, highlighting strong operational leverage as the business scales. This performance reflects disciplined cost management amid a stable fixed cost base.
Operating cash flow improved significantly, with net positive cash flow from operations totaling US$1.4 million (A$2.0 million) for FY26, compared to US$0.6 million (A$0.9 million) in Q4 alone. As of 30 June 2026, Change held US$3.1 million (A$4.4 million) in cash with no debt, excluding US$1.4 million (A$2.0 million) in cash-backed security guarantees. This strong cash position and debt-free balance sheet provide financial flexibility to support growth initiatives and product development without external funding.
Gross Margin Expansion and Cost Efficiency Drive EBITDA Growth
FY26 results showcased a 600 basis point gross margin increase compared to FY25, driven by scaling benefits as the PaaS platform and transaction volumes expanded. This margin improvement underscores the attractiveness of Change’s software-as-a-service and platform business model at scale, especially since transaction-based revenues generally yield higher margins than license sales.
The combination of improved gross margins and disciplined fixed cost management contributed to the significant 17-fold EBITDA growth. CEO Tony Sheehan highlighted that the company more than doubled in size over three years, achieving a 28% revenue CAGR while maintaining a stable fixed cost structure. This operational efficiency demonstrates the scalability of Change’s offerings, where revenue and transaction volume growth do not require proportional increases in operating expenses.
Q4 Vertexon and PaySim Sales Drive New Revenue Commitments
In Q4 FY26, Change secured US$0.6 million (A$0.9 million) in new revenue commitments from two Vertexon license tier sales and five professional services projects, primarily from two strategic Vertexon On-Premises clients in Southeast Asia. These engagements, alongside previous projects, provide visibility into future professional services revenue streams and reflect strong demand for Change’s payments expertise.
Additionally, Change sold a new PaySim license to a tier 1 financial institution. PaySim, the company’s payment simulation and testing platform, is undergoing a modernization project, with Phase 1 released in pilot mode to select clients as of 30 June 2026. The adoption of Agentic AI has accelerated PaySim development, with full modernization targeted for completion in FY27. Emerging sales opportunities from this project are expected to boost future sales via direct and partner channels.
Expanding Sales Pipeline Across Regions with Four Clients Near Contract Finalization
Change Financial reported robust sales pipeline momentum for both Vertexon and PaySim platforms, with opportunities growing across Australia, New Zealand, Southeast Asia, and global markets. Four PaaS clients are in the final contracting phase, with onboarding underway and card program launches planned for H1 FY27. These milestones are critical near-term growth drivers.
The company’s multi-regional focus includes strong professional services demand from Southeast Asian clients and expanding PaySim opportunities in Australia, New Zealand, and beyond. The modernization project is expected to open new sales channels and market segments, supporting revenue growth beyond FY27.
Vertexon PaaS Transaction Growth and Client Onboarding Progress
Transaction volumes on the Vertexon PaaS platform grew significantly in Q4 FY26, with transactions increasing 23% year-over-year and gross transaction volume rising 19%. Growth was fueled by new client onboarding and organic increases from existing clients. This transactional expansion is a key indicator of future PaaS revenue growth due to its correlation with transaction fee income.
Four contracted clients are currently onboarding to the Vertexon platform, with card programs launching in H1 FY27. The migration of Hnry’s customer base, with 70% of cards migrated by 30 June 2026, continues to drive active card growth, complemented by new prepaid and personal wealth management clients. This diverse client base highlights broad demand for Change’s card issuing and processing capabilities.
Three-Year Revenue CAGR of 28% Reflects Strategic Business Model Shift
From FY24 to FY26, Change Financial achieved a 28% compound annual growth rate in revenue, more than doubling its revenue base from approximately US$11.5 million in FY24 to US$18.2 million in FY26. This growth outpaces many peers in the software and fintech sectors and demonstrates successful execution across Vertexon and PaySim offerings.
The company’s strategic shift toward recurring revenue streams, which accounted for 73% of FY26 revenue, enhances revenue sustainability and predictability. As the PaaS business scales and new card programs launch, recurring revenue proportions are expected to rise further, strengthening Change’s financial foundation.
CEO Outlook and FY27 Strategic Priorities
CEO Tony Sheehan stated that Change Financial met its upgraded FY26 guidance and enters FY27 with strong PaaS momentum, including onboarded clients, ongoing onboarding of contracted clients, and a robust sales pipeline. He emphasized FY27 as a pivotal year for PaySim, following the initial product modernization phase release.
Management’s focus remains on organic growth, maintaining a debt-free balance sheet, and positive operating cash flow. Investment in PaySim’s modernization, leveraging Agentic AI, aims to expand market opportunities in payment simulation and testing. The onboarding of contracted PaaS clients and finalizing contracts with four clients are key near-term catalysts expected to drive transaction volumes and revenue growth throughout FY27.
Operational Metrics Confirm Sustained Platform Momentum
June 2026 marked record highs for active cards, transactions processed, and gross transaction volume on the Vertexon PaaS platform, indicating broad-based strength across the business rather than reliance on isolated metrics or clients. This consistent positive momentum reflects solid underlying fundamentals.
Change provides quarterly updates on key Vertexon PaaS metrics, enabling investors to monitor growth trends. The strong correlation between PaaS revenue, active cards, and transaction activity suggests continued revenue expansion aligned with client growth and new acquisitions, offering clear leading indicators of future financial performance.
