Full Year 2025 Change Financial Ltd Earnings Call Transcript
Key Points
- Revenue increased by 42% over the prior year, exceeding the guidance of over 30%.
- Achieved a maiden positive underlying EBITDA of approximately $200,000, excluding US operations, which resulted in an EBITDA of $1.3 million.
- 76% of revenue was derived from recurring sources, providing a solid base for future growth.
- Significant growth in active cards on the PaaS platform, leading to a sevenfold increase in transaction numbers and volume processed.
- Successfully onboarded new PaaS clients in Australia and New Zealand, contributing to future revenue growth.
- Margins were impacted by startup costs and onboarding expenses, with PaaS margins expected to improve but currently not at optimal levels.
- The US operations were loss-making and have now been ceased, indicating past inefficiencies.
- The company is not yet at scale, particularly in Australia, which limits current revenue potential.
- CapEx has been reduced, but there is a need for careful management to ensure continued product development and competitiveness.
- The competitive landscape requires careful pricing strategies to avoid a race to the bottom while maintaining functionality and service quality.
Good morning and welcome to the FY25 annual results update for Change Financial. My name is Tony Sheehan, CEO of Change, and I'm joined by Tom Russell, Executive Director.
Similar to our usual reporting format, Tom and I will run through a presentation and then take Q&A at the end. If you have any questions, please submit them through the Q&A function on this webinar.
So what do we do at Change Financial? So we provide innovative and scalable payment solutions for over 150 clients across more than 40 countries. We are a B2B business with two core products. The first is Vertexon, which is our payments-as-a-service offering, which provides card issuing, card management, and transaction processing.
Vertexon supports prepaid debit and credit card issuing. And there are two models under Vertexon. The first is processing only. So under this model, Change provides the technology, which is a card management system, to clients to run their card programs. So the clients hold the necessary scheme and regulatory licenses
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