Change Financial (ASX: CCA) has reported its record revenue quarter in Q2 FY26, with revenue of US$4.7 million (A$7.0 million), up 34% on the prior corresponding period. The result marks the highest quarterly revenue in the company’s history and provides evidence the business model is proving out at scale.
Customer receipts for the quarter totalled US$3.9 million (A$5.8 million), up 4% on the prior corresponding period. The 34% revenue growth significantly outpacing customer receipt growth indicates strong invoicing activity and contracted work flowing through to revenue recognition.
CEO Commentary
“Our strong performance has continued in Q2, delivering another record revenue and strong Underlying EBITDA result. Operating leverage has been clearly demonstrated over the past two quarters as the business hits a key inflection point,” said Tony Sheehan, Chief Executive Officer.
Recurring revenue now anchors 70% of income
Change Financial’s revenue composition continued to strengthen in Q2 FY26, with 70% of revenue derived from recurring streams. Support & Maintenance contributed US$1.4 million, whilst Payments-as-a-Service (PaaS) transaction fees generated US$1.9 million. The remaining 30% came from one-off Licence & Professional Services revenue of US$1.4 million.
This recurring revenue foundation builds predictability into the income base and positions the company for compound growth as the PaaS platform scales.
| Revenue Stream | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 |
|---|---|---|---|---|---|
| PaaS (Recurring) | US$1.6m | US$1.5m | US$1.9m | US$1.8m | US$1.9m |
| Support & Maintenance (Recurring) | US$1.3m | US$1.3m | US$1.3m | US$1.4m | US$1.4m |
| Licence & Professional Services | US$0.5m | US$1.1m | US$0.7m | US$1.4m | US$1.4m |
| Total Revenue | US$3.5m | US$3.9m | US$4.0m | US$4.6m | US$4.7m |
| % Recurring | 83% | 70% | 80% | 70% | 70% |
Understanding PaaS revenue models in payments
Payments-as-a-Service business models generate transaction-based fees that scale with card volumes and usage. Each time a cardholder makes a purchase or transaction, the platform operator earns a small fee. As the number of active cards grows and transaction frequency increases, revenue compounds without requiring proportional increases in operating costs.
This revenue structure is highly valued by investors because it provides predictable, recurring income streams that grow automatically with client success. Unlike one-off licence sales, PaaS revenue builds quarter after quarter, creating a compounding growth dynamic. As Change Financial’s active card base expands, the platform generates increasing revenue without needing to proportionally scale headcount or infrastructure costs.
Vertexon platform scales with active cards up 66% on pcp
The Vertexon PaaS platform processed transactions for over 110,000 active cards during Q2 FY26, representing 24% quarter-on-quarter growth and 66% year-on-year growth. These cards are actively generating revenue for the company through transaction fees.
The strong correlation between active card growth and PaaS revenue provides visibility on future income as the platform continues to scale. Three key drivers contributed to the expansion:
- NZ wealth management platform formal launch: Change’s New Zealand personal wealth management client formally launched their card programme, with strong demand from the client’s existing member base driving cardholder growth.
- Existing fintech client growth: An established fintech client aggressively expanded its cardholder base during the quarter.
- Embedded finance client onboarding complete: The embedded finance client signed in Q4 FY25 completed onboarding, including digital pays integration. The client is scheduled to launch and migrate existing cardholders to Change’s Vertexon platform in Q3 FY26, providing near-term visibility on further active card growth.
Operating leverage delivers Underlying EBITDA of US$1.8m in H1
Change Financial generated Q2 FY26 Underlying EBITDA of US$0.9 million (A$1.3 million), bringing H1 FY26 Underlying EBITDA to US$1.8 million (A$2.7 million). The result demonstrates operating leverage taking hold, with incremental revenue flowing through to profit at a higher rate.
Staff costs comprised approximately 48% of cash payments for operating activities during the quarter, up 9% on the prior corresponding period. The increase was partially driven by FY25 bonus payments made in FY26 which were not paid in the prior year.
Management indicated the team is now in place to enable significant further scale in PaaS volumes and to onboard new clients. Staff costs are expected to grow only modestly relative to revenue growth moving forward, creating expanding profit margins as the platform scales.
New sales and partnerships extend geographic reach
Change Financial secured multiple new sales and strategic partnerships during Q2 FY26, expanding its geographic footprint and client base:
- New Vertexon PaaS fintech client (South Pacific): A fintech focused on improving financial inclusion and payment choice across the South Pacific region. Vertexon will process in-region payments with the client acting as issuer, further demonstrating the platform’s flexibility and global applicability.
- New PaySim partner (Middle East): A new payments testing partnership in the Middle East reinforces Change’s strategy of expanding geographic reach and accelerating entry into high-growth international markets.
- BIN Sponsorship strategic partnership: A collaboration with a global payment processor to support their existing clients entering the Australian market. The partnership strengthens Change’s issuing proposition and supports continued expansion of services in Australia.
The growing diversity of Vertexon and PaySim partnerships strengthens the company’s go-to-market capability and enables efficient scaling across multiple regions through a “one-to-many” sales approach. This partner ecosystem reduces single-market risk whilst supporting efficient customer acquisition.
Upgraded FY26 guidance reflects strengthening trajectory
Change Financial upgraded its FY26 revenue guidance to between US$17.5 million (A$26.1 million) and US$18.5 million (A$27.6 million). Underlying EBITDA guidance was raised to between US$3.1 million (A$4.6 million) and US$3.8 million (A$5.7 million), representing a 15% increase at the midpoint compared to previous guidance.
The company expects to be net cash flow positive for FY26, removing near-term funding concerns. Cash holdings stood at US$2.6 million (A$3.9 million) with no debt as at 31 December 2025, excluding an additional US$1.4 million (A$2.1 million) held in cash-backed security guarantees required to support the Vertexon PaaS platform.
Management Outlook
“Following another strong quarter, we have upgraded our revenue and Underlying EBITDA expectations for FY26. The business has continued to strengthen, and we are very well positioned to drive profitable growth in the second half of FY26 and beyond,” said Tony Sheehan.
What comes next for Change Financial
Change Financial has clear visibility on near-term revenue contributors and operational milestones:
- Q3 FY26: Embedded finance client launch and card migration to Vertexon platform scheduled. The client will start contributing to PaaS metrics and revenue from Q3 onwards.
- H2 FY26: Global payments client full public launch in Australia expected following successful testing completion. Original Q2 target was delayed due to client timeframes.
- Ongoing focus: Building sales pipeline, winning new deals particularly in Oceania and Southeast Asia, and driving operational efficiencies to deliver top and bottom-line growth.
The company’s geographic focus on Oceania and Southeast Asia aligns with demonstrated platform strengths and existing client success in these markets. With the team in place to scale PaaS volumes and recurring revenue now anchoring 70% of income, the business is positioned to expand profit margins as active card numbers continue growing.
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