Change Financial delivers maiden full-year profit as PaaS drives record FY26 result
In its FY26 results presentation dated 27 August 2026, Change Financial outlined a maiden full-year profit, marking a key milestone as the payments solutions provider transitioned from cash-burning towards profitable scale.
The company reported FY26 revenue of US$18.2m (A$26.0m), up 21%, with Underlying EBITDA of US$3.3m (A$4.7m), a 17x increase from US$0.2m in the prior year. Management noted the result delivered on upgraded FY26 revenue and Underlying EBITDA guidance.
The FY26 EBITDA guidance upgrade issued in January 2026 lifted the top-end target by 15%, reflecting management’s growing confidence in the platform’s operating leverage as H1 results were confirmed and the professional services pipeline converted.
Change provides tailored payment solutions, card issuing and testing to 150+ banks and fintechs across 40+ countries via two proprietary platforms, vertexon and paysim. Recurring income streams accounted for 73% of FY26 revenue, and the company recorded a 3-year revenue Compound Annual Growth Rate (CAGR) of 28% to FY26.
When big ASX news breaks, our subscribers know first
FY26 financial results: revenue growth meets operating leverage
The presentation detailed how a stable fixed cost base combined with Payments-as-a-Service (PaaS) revenue growth produced material EBITDA expansion across the completed reporting period.
The headline numbers
Gross profit rose 33% to US$13.4m. The PaaS platform delivered a gross margin expansion of 600 basis points from 26% to 32%, reflecting the operating leverage achieved as PaaS volumes scaled. Employee expenses remained effectively flat at approximately US$6.4m, allowing revenue growth to flow through to earnings. Underlying EBITDA was weighted US$1.8m in H1 and US$1.5m in H2.
Management attributed the technology and hosting cost reduction to the company’s exit from the US, with the associated US entity now liquidated.
| Metric | FY26 (US$000) | FY25 (US$000) | Change |
|---|---|---|---|
| Revenue | 18,222 | 15,089 | 21% |
| Gross Profit | 13,359 | 10,033 | 33% |
| Underlying EBITDA | 3,309 | 200 | 17x |
Cash and balance sheet strength
The company recorded operating cash flow of US$1.5m, a strengthening from the US$0.8m positive result already achieved in FY25. Cash receipts reached US$16.5m (A$23.6m), up 8%, supported by growth in the PaaS business, where clients are invoiced monthly in arrears.
Change ended the period with a cash balance of US$3.1m (A$4.4m), alongside a further US$1.4m held in cash-backed security guarantees required by its scheme and processing partners. Net assets increased to US$8.0m from US$7.0m, and the company currently holds no borrowings.
PaaS: the growth engine behind the numbers
Management highlighted that vertexon, the company’s Payments-as-a-Service platform, is now the largest revenue contributor and the driver of margin expansion. vertexon accounted for 83% of FY26 revenue, with paysim contributing the remaining 17%.
PaaS revenue rose 19% on FY25. The presentation detailed the following operational metrics for the period:
-
150k+ active PaaS cards, up 104%
-
21.4m transactions processed, up 17%
-
Transaction value of US$630m, up 16%
By service offering, Processing & Issuing (PaaS) represented 42% of revenue, Support & Maintenance 31%, Professional Services 19%, and Licences 8%. By region, Oceania contributed 54%, SE Asia 32%, Latin America 11%, and Rest of World 2%.
The company noted the Hnry AU and NZ card program migration was completed in July, and reported record active cards, transaction numbers and gross transaction volume through the platform in June and again in July, signalling momentum entering FY27.
What Payments-as-a-Service actually means
Under vertexon Processing & Issuing, Change holds the Mastercard scheme and regulatory licences, an Australian Financial Services Licence (AFSL) in Australia and a Financial Service Provider (FSP) registration in New Zealand. This allows clients to issue cards without building their own infrastructure.
According to the presentation, the platform lets clients “rival the major banks in a capital efficient manner.”
The recurring nature of PaaS revenue matters to investors. Platform fees, transaction fees, value-added services and interchange generate predictable income that scales with volume, producing operating leverage as the platform grows. Combined with initial contract terms typically running 3 to 5 years, this structure underpins earnings quality and predictability.
Outlook: management targets accelerating growth into FY27
The presentation set out the roadmap management outlined for FY27, framed around accelerating client wins in core target markets:
-
Four contracted clients are being onboarded, all forecast to be live and transacting in H1 FY27
-
Four additional clients are in the final contracting phase
-
A medium-term PaaS gross margin target of 40–45%, versus the FY26 PaaS gross margin of 32%
-
The company expects to be net cash flow positive for FY27
-
Strong entry momentum underpinned by record PaaS revenues in June 2026
The appendix disclosed a pipeline of clients currently being onboarded to the vertexon platform, including a kids banking fintech (AU) and casual wages payment fintech (AU) targeting launch around Q1 FY27, a global fintech (AU) targeting mid-to-late CY26, and a South Pacific fintech targeting Q1 FY27.
Change expects to be net cash flow positive for FY27, with PaaS gross margins targeted to improve towards 40–45% as transaction volumes scale.
The investment case in focus
The presentation consolidated the following investment highlights:
-
70%+ recurring revenue base
-
Full AU and NZ card issuing licences in place (AFSL and FSP), plus a strong Mastercard relationship
-
Marquee clients including two of the largest banks in the Philippines, with 5 of the top 10 global digital payment companies using paysim
-
paysim holds <0.5% share of an estimated multi-billion-dollar global testing market and is described as the default standard for EFTPOS testing in Australia
-
Long-term contracts, typically 3 to 5 years, supported by high switching costs given the critical nature of the service
With profitability now achieved, a recurring revenue base anchored, and a sizeable under-penetrated Australian card issuing market ahead, the presentation positioned FY26 as an inflection point in the company’s transition to profitable scale.
Stay Ahead on Fintech and Finance News
Big News Blast delivers FREE breaking ASX fintech and finance news directly to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ subscribers already getting the edge on market-moving announcements before the broader market reacts. Click the “Free Alerts” button at Big News Blast to start receiving alerts today.