Company Interview / Change in fortune amid 42% revenue growth

Bullet points:

Change Financial (ASX:CCA) reports 42% revenue growth for FY25 and is now cash flow positiveStrategic withdrawal from US operations allows stronger focus on Australia, New Zealand, and Southeast AsiaRecurring revenue rises to 76% of total, solidifying future outlookGuidance for FY26 forecasts revenue of $16.5-18 million USD and higher EBITDA

Tony Sheehan of Change Financial highlights a strong finish to the financial year, underscoring significant revenue growth of 42% for FY25, well above prior guidance of 30%. Sheehan states the company is now cash flow positive for both the fourth quarter and the entire year, marking an important milestone. Cost discipline is maintained as revenue grows, positioning the business well to leverage recent investments in sales and marketing.

Sheehan attributes this momentum in part to a strategic withdrawal from the US market, a move prompted by a challenging regulatory environment following the collapse of Silicon Valley Bank. With US operations incurring substantial losses and regulatory hurdles stalling client programmes, the company has refocused on core markets in Australia, New Zealand, and Southeast Asia. Sheehan notes strong sales in card issuing, seeing new clients acquired in both Australia and New Zealand, and momentum in the company’s PaaS (Platform as a Service) and payment processing offerings.

Recurring revenue has become a foundation for Change Financial, rising from 50-60% of total revenue to 76% in FY25, providing solid visibility heading into FY26. Guidance anticipates revenue of $16.5-18 million USD and a substantial uplift in underlying EBITDA to $2.5-3.5 million USD, maintaining positive net cash flow for the year.