Way2VAT has reported Way2VAT FY25 revenue growth of 46% to $6.6 million in its preliminary final report for the 12 months ended 31 December 2025. The ASX-listed fintech also reduced its EBITDA loss by 16% to $4.3 million while growing its enterprise client base 27% to 501 customers, including blue-chip names across real estate, pharmaceuticals, commodities, and e-commerce sectors.
Way2VAT delivers 46% revenue growth to $6.6 million in FY25
The Tel Aviv-headquartered fintech reported revenue of $6.6 million for FY25, up from $4.6 million in the prior corresponding period. This growth occurred alongside improving loss metrics, with the operating loss from ordinary activities narrowing 14% to $4.8 million compared to $5.6 million in FY24.
The company’s enterprise client count reached 501 at year-end, representing 27% growth from 395 clients in FY24. New clients secured during the period include global real estate service companies JLL and Savills, pharmaceutical groups Aptar Group and Apellis, commodities supplier Trafigura Group, e-commerce platform Rakuten, aerospace firm Hispasat, and metallurgical products company Ferroglobe.
Revenue acceleration combined with improving loss metrics signals operational leverage taking hold as the business scales. The underlying Way2VAT business (excluding RBC acquisition costs and one-off performance-based options expenses) decreased costs by 5% year-on-year on a like-for-like basis, demonstrating cost discipline whilst expanding the revenue base.
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What is VAT reclaim technology?
Value Added Tax (VAT) reclaim technology addresses a specific challenge for multinational enterprises. Businesses operating internationally can recover VAT paid on expenses such as travel, accommodation, and procurement in foreign jurisdictions, but the process is historically manual, complex, and varies by country.
Way2VAT operates a patented artificial intelligence technology that automates the end-to-end VAT reclaim process across more than 40 countries and in over 20 languages. The platform serves hundreds of enterprise businesses worldwide, targeting large corporations with substantial global travel and procurement expenses.
This recurring revenue model creates sticky, long-term client relationships. Once integrated into a client’s accounts payable workflow, the platform continuously identifies and processes eligible VAT reclaims, generating ongoing fees as recoveries are completed.
RBC acquisition anchors third growth pillar
Way2VAT completed the acquisition of RBC VAT Limited on 30 September 2025, adding a UK-based VAT advisory and compliance firm with over 20 years of operating history to its portfolio. The transaction brought 80 new enterprise clients to Way2VAT’s customer base and provides the launchpad for the company’s third growth pillar focused on VAT compliance and consultancy services.
RBC is positioned to strengthen Way2VAT’s European presence and enhance its advisory capabilities, directly complementing the company’s automated technology platform. The acquisition is expected to be highly complementary to the company’s other vertical offerings and forms part of a stated roll-up strategy.
To fund the acquisition, Way2VAT secured $4.1 million (before costs) via a placement of ordinary shares in September 2025, with strong support from new and existing institutional, professional, and sophisticated investors. The company also entered into a debt facility with Bank Hapoalim for £500,000 (approximately $1.0 million) over 18 months at Israeli Prime Rate plus 4.5% (currently 10.0%), secured against the shares of RBC VAT.
CEO Amos Simantov
“The acquisition was a significant milestone for us, as it directly supports our third pillar of growth focused on VAT compliance and consultancy services. This acquisition is a key part of our roll-up strategy and we intend to continue pursuing similar acquisitions to further strengthen our offerings.”
RBC contributed three months of revenue to FY25 results following completion on 30 September 2025. A full year of contribution is expected in FY26, supplementing anticipated organic growth from clients onboarded during the second half of 2025.
Four pillars strategy and enterprise client wins
Enterprise client momentum
Way2VAT’s client acquisition strategy demonstrates traction across diverse sectors, validating the enterprise sales motion and creating cross-selling opportunities across its four growth pillars. Major new clients secured during FY25 include:
- JLL and Savills (Real Estate)
- Trafigura Group (Global Commodities)
- Aptar Group and Apellis (Pharmaceutical)
- Rakuten (E-commerce)
- Hispasat (Aerospace)
- Ferroglobe (Metallurgical Products)
The high-calibre client roster provides multiple entry points for Way2VAT’s expanded service offering. Large enterprises with complex international operations typically have substantial VAT reclaim opportunities across travel expenses, procurement, and supply chain activities, whilst also requiring compliance support across multiple jurisdictions.
Cost discipline in the core business
Excluding December quarter RBC expenses, one-off expenses related to the RBC acquisition, and one-off performance-based options expenses, the underlying Way2VAT business reduced costs by 5% in FY25 compared to FY24 on a like-for-like basis.
The path to profitability becomes clearer when revenue grows faster than costs. With Way2VAT FY25 revenue growth of 46% outpacing the cost base reduction, gross margins continue to improve as the business scales its automated platform across a growing client base.
Capital position and FY25 funding activity
Way2VAT completed multiple funding transactions during FY25 to support growth initiatives and the RBC acquisition. The company’s capital raising activity throughout the year provided resources for expansion whilst managing working capital requirements.
| Funding Event | Timing | Amount |
|---|---|---|
| Convertible notes (converted to equity) | January 2025 | $2.55 million |
| Placement of ordinary shares | June 2025 | $2.0 million |
| Placement to fund RBC acquisition | September 2025 | $4.1 million |
At 31 December 2025, (ASX: W2V) held a cash balance of $768,000. However, the company reported accounts receivable of $6.9 million, representing fees associated with client VAT reclaims due mostly from various government tax authorities.
Whilst the cash balance appears modest, the $6.9 million receivables position represents contracted revenue awaiting collection from tax authorities, providing near-term cash conversion visibility. The nature of VAT reclaim revenue creates timing differences between when Way2VAT recognises fees and when government authorities process refunds and release funds.
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FY26 outlook and Coupa partnership
Management has stated expectations for further organic growth in FY26, supplemented by a full year of contribution from RBC compared to three months in FY25. Cross-selling opportunities within the current portfolio of businesses are anticipated as the four-pillar strategy matures.
The company recently entered into a commercial partnership with Coupa Software Incorporated, an AI-driven, global cloud-based Business Spend Management platform. Coupa helps companies manage procurement, accounts payable, expenses, and supply chain operations, streamlining purchases, invoices, and supplier interactions through a unified interface.
Way2VAT’s APAI product (the company’s second growth pillar focused on real-time invoice validation) will be available on the Coupa App Marketplace, where Coupa clients can seamlessly integrate the APAI tool into their current accounts payable invoice flow. Way2VAT has successfully completed an extensive process of proving feasibility and connection between APAI and Coupa.
The Coupa partnership provides a distribution channel to enterprise clients already using business spend management software, potentially accelerating APAI adoption without proportional sales costs. Both companies typically engage with large enterprise-level clients, creating natural alignment in target markets.
CEO Amos Simantov
“We have expectations of further organic growth and cross selling opportunities within our current portfolio of businesses. We also will continue our search for attractive acquisition opportunities that bring to Way2VAT earnings accretive VAT businesses with strong client relationships who can benefit from our industry leading VAT technology platform.”
The roll-up strategy remains active, with management continuing to search for attractive acquisition opportunities that bring earnings-accretive VAT businesses with established client relationships that can benefit from Way2VAT’s technology platform.
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