Change Financial Delivers Record Q3, Eyes FY25 Profitability

About Change Financial Limited

Change Financial Limited (ASX: CCA) is a financial company that leads the innovative and scalable payment solutions, offering payments as a service (PaaS) and banking as a service (BaaS) products to over 150 banks and financial technology companies in 40+ countries. Change Financial Limited was listed on the ASX on 30 June 2016 at an issue price of AUD 0.46 per share.

Financial Performance

In Q3 FY25, Change delivered record revenue of AUD 6.1 million, representing a 30% increase compared to the previous corresponding period (pcp). The company achieved AUD 17.3 million in revenue year-to-date, up 48% on pcp. Recurring revenue streams, including PaaS transaction fees and support services, accounted for 74% of FY25 YTD revenue. Underlying EBITDA for Q3 FY25 stood at AUD 0.6 million, highlighting the operational improvements following the exit from its US operations. Cash holdings totalled AUD 5.0 million, with an additional AUD 1.4 million held in security guarantees.

Growth Pipeline

Change Financial continues to experience momentum in scaling its PaaS platform across Australia and New Zealand. The company is onboarding new clients, including fintechs and financial institutions, while strengthening its position in the New Zealand market. A significant focus is placed on expanding the Australian market opportunity by targeting small-to-medium financial institutions and non-bank lenders. Additionally, Change is leveraging strategic partnerships and considering inorganic growth opportunities to accelerate its expansion strategy.

Strategic Development

The company made substantial strategic progress in the quarter. A major development was onboarding a new Vertexon PaaS client in Australia, signifying a breakthrough into the local market following success in New Zealand. Change is leveraging its recent achievements to strengthen its pipeline across both countries, particularly converting interest into commercial contracts in Australia.

Notably, the company’s PaaS clients are now fully operational with digital wallet capabilities, including Apple Pay and Google Pay, which further enhances the platform’s value proposition.

A dedicated business development team has been deployed to accelerate sales efforts and maximise revenue from current relationships through cross-selling and upselling initiatives. Meanwhile, strategic partner engagement is being used as a “one-to-many” channel to scale growth more efficiently.

The exit from US operations represents a critical strategic reset. It has allowed the business to sharpen its operational focus, reduce cash burn, and improve its path to profitability. The restructuring is expected to materially boost EBITDA margins in the coming quarters.

Industry Context

The payments landscape is rapidly evolving, with demand for embedded finance, digital wallets, and card issuance solutions growing across global markets. Card payments in New Zealand have exceeded NZD 109 billion annually, with over 2 billion card transactions processed yearly. Although Change currently holds under 1% market share in transaction volumes, its presence in small financial institutions has grown to an estimated 15% share in the debit card segment.

In Australia, card-based transactions dominate retail payment volume, with the total value of card payments reaching AUD 583 billion. While the Big 4 banks still command the majority of the card issuance market, Change sees a significant opportunity in targeting under-served small to mid-tier banks, digital banks, and non-bank lenders. These institutions often lack the infrastructure to provide advanced card issuing capabilities, presenting a strong fit for Vertexon’s turnkey platform.

In parallel, the global payments testing market offers a vast opportunity for PaySim, Change’s simulation and compliance solution. With over 32,000 potential institutional clients worldwide and minimal market share to date, the runway for expansion is substantial.