Key Highlights

  • FY26 Revenue reached US$18.2 million (A$26.0 million), up 21% on the prior corresponding period, delivering a 3-year revenue CAGR of 28%.
  • Underlying EBITDA was US$3.3 million (A$4.7 million), an approximately 17-fold increase on FY25.
  • The company delivered a maiden full-year profit of US$0.5 million (A$0.7 million).
  • Recurring revenue represented 73% of FY26 revenue, with PaaS gross Margin improving 600 basis points during the year to 32%.

Change Financial Limited (ASX:CCA) reported FY26 revenue of US$18.2 million (A$26.0 million), up 21% on the prior corresponding period and in line with the company's upgraded market guidance. This growth was primarily driven by increasing Platform-as-a-Service (PaaS) revenue combined with continued delivery of one-off licence sales and professional services revenue. The company has now achieved a 3-year revenue compound annual growth rate of 28%, with revenue more than doubling over that period.

With PaaS revenue growing, the company reported an increasing base of recurring revenue, with approximately 73% of FY26 revenue derived from recurring income streams comprising Support & Maintenance and PaaS transaction fees. The remaining 27% of revenue was generated from project and licence income on a non-recurring basis.

Maiden Profit and EBITDA Turnaround

Change delivered Underlying EBITDA of US$3.3 million (A$4.7 million) for FY26, representing an approximately 17-fold increase on the prior year. The company said this significant improvement was primarily due to increasing revenue combined with a stable Fixed Cost base, consistent with the operating model the company has maintained in recent years. This Operating Leverage translated into the company's maiden full-year profit of US$0.5 million (A$0.7 million).

The company also reported positive net Cash Flow from Operating Activities of US$1.5 million (A$2.1 million) in FY26, a further indicator of the improving underlying Economics of the Business as its Recurring Revenue base scales.

PaaS Platform Momentum and Margin Improvement

The PaaS platform was identified as the key driver of growth during the year, with the company reporting new sales secured with both new and existing Vertexon and PaySim clients. Change enters FY27 currently onboarding four contracted PaaS clients, with a further four additional clients in the final contracting phase, alongside what the company described as a maturing pipeline of opportunities, particularly in the Australian market.

PaaS gross margin improved 600 basis points during the course of FY26 to reach 32%, with the company targeting a medium-term range of 40% to 45% as the platform continues to scale. The company said this margin improvement reflects the benefits of operating leverage as transaction volumes on the platform increase relative to the underlying fixed cost base supporting the business.

Outlook for FY27

Change enters FY27 with what it described as strong momentum, underpinned by record PaaS revenues recorded in June 2026. The company expects this to further accelerate through FY27, driven by the onboarding of its four currently contracted clients, all forecast to be live and transacting in the first half of FY27, together with the four new clients currently in final contracting and further client wins from its increasingly maturing sales pipeline.

The company reiterated its expectation that PaaS gross margin will continue improving as transaction Volume scales, targeting a medium-term range of 40% to 45%, compared with the 32% achieved in FY26. Change also said it expects to be net cash flow positive for FY27, building on the positive Operating Cash Flow delivered during FY26.

Conclusion

Change Financial's FY26 results mark a significant milestone for the company, with its first maiden full-year profit accompanying a substantial improvement in Underlying EBITDA and continued double-digit revenue growth led by its PaaS platform. With a growing base of recurring revenue, improving margins, and a pipeline of new clients set to onboard through FY27, the company's near-term trajectory will likely be shaped by the pace at which newly contracted PaaS clients transition to live, transacting status.