Novatti Group (ASX:NOV) Consolidates Turnaround as Payments AU/NZ Lifts Normalised Cash EBITDA to Breakeven

Aditi Sarkar

27 October 2026 10:24 PM AEDT

Novatti Group (ASX:NOV) Consolidates Turnaround as Payments AU/NZ Lifts Normalised Cash EBITDA to Breakeven

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Highlights

Normalised cash EBITDA reached breakeven in the half to 31 December 2025, against a $2.1 million loss a year earlier.
Revenue fell to $14.6 million from $25 million as the company exited high-cost, complex and low-margin lines.
Payments AU/NZ delivered $0.5 million of direct EBITDA, with the second quarter its fourth consecutive positive result.
Novatti sold Emersion Systems for $500,000 cash and raised $1 million through a share placement.

Novatti Group Ltd (ASX:NOV) is smaller, leaner and, on its own measure, at breakeven. Its half-year to 31 December 2025 showed a business that has shed complexity, sold a non-core unit and leaned on its Australian and New Zealand payments operations to reach breakeven.

Breakeven Arrives on a Smaller Revenue Base

Normalised cash EBITDA, which excludes non-cash entries and historic liabilities, reached breakeven against a loss of $2.1 million in the prior corresponding half. Revenue was $14.6 million, down from $25 million, and management attributes the fall to exiting high-cost, complex or low-margin lines. Net operating cash flow improved to a $0.1 million outflow from $7.5 million, a swing of about $7.4 million, while the normalised cash EBITDA result improved by $2.1 million. Revenue fell about 41.6%.

Payments AU/NZ led the improvement with $0.5 million of direct EBITDA in the half. Direct EBITDA excludes corporate overheads, non-cash entries and historic liabilities. The December quarter was the fourth consecutive quarter of positive direct EBITDA for the division.

Portfolio Changes and Capital Moves

Novatti sold Emersion Systems to a subsidiary of CGP Equity for $500,000 in cash under an unconditional share purchase agreement. It also holds 20 million shares in AUDC Pty Ltd, the issuer of the AUDD stablecoin, which raised $5 million in a Pre-Series A round at $0.80 per share.

A $1 million share placement to Australian Wealth Advisors Group Ltd and its subsidiary Armytage Private will fund targeted marketing, Acquiring sales and product enhancements.

Board Changes

Chris Ryan and Tom Ng joined as non-executive directors, and Killian Murphy resigned, with the changes effective on 26 November 2025. The company later lodged a board changes notice on 1 October 2026.

Strategy Centres on Acquiring and Issuing

Management plans to apply the Issuing sales model to Novatti's other offerings in Australia and New Zealand while scaling Acquiring. Existing Acquiring customers have been migrated to a new omni-channel platform, which management expects to support long-term margin expansion. The company describes the result as scalable growth and margin opportunities. The announcement carries a standard forward-looking statements disclaimer.

Later Filings Follow

The company lodged its FY26 results announcement and preliminary final report on 31 August 2026, followed by its corporate governance statement and a Listing Rule 4.3D notification on 30 September.

Stock Price Information

Novatti shares were unchanged at A$0.013 on 27 October 2026, giving the company a market capitalisation of about A$8.1 million. The stock is down 62.86% over the past year.

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