Change Financial (ASX: CCA) Delivers 17-Fold EBITDA Growth as Recurring Revenue Powers Strong FY26 Finish

Change Financial (ASX: CCA) has capped off a milestone financial year by delivering record revenue, a sharp improvement in profitability and continued growth in its cloud-based payments platform, signalling a significant shift in the company’s evolution from a small fintech to a business generating sustainable earnings.

The financial technology company reported unaudited FY26 revenue of US$18.2 million (A$26.0 million), up 21% from the previous year and in line with its upgraded guidance. The stronger sales performance was accompanied by a dramatic improvement in profitability, with Underlying EBITDA rising to US$3.3 million (A$4.7 million), representing a 17-fold increase compared with FY25.

The June quarter maintained that momentum. Revenue climbed 16% year-on-year to US$4.6 million, while quarterly Underlying EBITDA jumped 164% to US$0.8 million.

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Perhaps more important than the headline figures is where the growth is coming from.

Around 73% of Change Financial’s FY26 revenue is now recurring, reflecting the increasing contribution of its Vertexon Platform-as-a-Service (PaaS) business. Unlike one-off software sales, recurring platform revenue is generated through ongoing transaction processing and card management services, providing a more predictable income stream as customers continue using the platform.

Active cards on the Vertexon platform more than doubled during the year to over 150,000, while June delivered record monthly figures for active cards, transaction volumes, gross transaction value and PaaS revenue. The company said the expansion was driven by client migrations, including Hnry Australia and New Zealand, alongside growth from wealth management and employee benefits card programs.

The payments industry continues to experience rapid structural growth as banks, fintech companies and businesses increasingly outsource card issuing and payment infrastructure to specialised technology providers. According to industry research from McKinsey and Nilson Report, digital payments and embedded financial services continue expanding globally as financial institutions seek faster and lower-cost technology platforms.

This broader trend appears to be supporting Change Financial’s strategy of focusing on cloud-based payment infrastructure rather than traditional software licensing.

The company’s profitability also improved as the platform expanded. Gross margins increased by around six percentage points during FY26, reflecting operating leverage, where additional revenue is generated without a proportional increase in costs.

Change also finished the year with US$3.1 million in cash, no debt and US$1.4 million in positive operating cash flow for FY26.

Company’s management said growth momentum has continued into FY27. Four new Platform-as-a-Service clients are in the final stages of contract negotiations, while another four customers are already onboarding ahead of expected card launches during the first half of the financial year.

At the same time, Change is transitioning several legacy on-premises customers to its cloud platform. While management expects approximately US$2 million in annualised legacy revenue to roll off as some customers choose not to migrate, the company has identified around US$500,000 in cost savings to help offset part of that impact.

Chief Executive Officer Tony Sheehan said the company has entered a new phase of growth.

“We are very pleased to have delivered on our upgraded FY26 revenue and Underlying EBITDA guidance. Our PaaS operations continue to be a key driver of growth, with total revenue for the year up 21% on FY25. We are also seeing material scale benefits with Underlying EBITDA up 17 times on FY25.

“With a strong FY26, we have more than doubled the size of the revenue of the Company over the past 3 years, delivering a 3-year revenue CAGR of 28%. This growth has been delivered with a relatively stable fixed cost base, driving a strong improvement in Underlying EBITDA. Pleasingly the PaaS platform continues to scale, delivering significant gross margin expansion in FY26.

“As we look forward to FY27, we enter the year with strong momentum in the PaaS business, with clients already onboarded and growing, contracted clients currently onboarding and a strong pipeline of new deals. We are also entering an exciting period for PaySim with the recent release of the first phase of the product modernisation project.”

Shares in Change Financial rose 14.58% to $0.055 following the update, valuing the company at approximately A$38 million.

While FY27 guidance is yet to be released, the combination of growing recurring revenue, positive cash generation and an expanding client pipeline suggests the market will now be watching whether the company can maintain its improving earnings trajectory as its payments platform continues to scale.

Sources: Change Financial ASX Quarterly Update and Appendix 4C (24 July 2026); McKinsey Global Payments Report; Nilson Report.