Change Financial Ltd's (ASX: CCA) FY25 Earnings and Strategic Pivot to Profitability: Assessing CCA's Revenue Surge, PaaS Growth, and Path to EBITDA Positivity in FY26

Change Financial Ltd (ASX: CCA) has emerged as a compelling case study in strategic reinvention, delivering a 42% year-over-year revenue surge to US$15.1 million in FY25 while achieving its first positive Underlying EBITDA of US$0.2 million [1]. This transformation is underpinned by a 391% leap in Payments as a Service (PaaS) revenue, driven by its Vertexon platform, which now serves 156 clients across 41 countries [2]. The company’s exit from unprofitable US operations and focus on high-margin markets like Australia and New Zealand further signal a disciplined approach to profitability [3].

Revenue Surge and Recurring Model Strength

The FY25 results highlight a robust revenue model, with 76% of total revenue derived from recurring streams [1]. This recurring nature, coupled with the PaaS platform’s scalability, positions Change Financial to capitalize on the global shift toward digital payment solutions. The Vertexon platform’s 391% revenue growth in FY25 underscores its role as a core driver, with management projecting continued expansion in FY26 [2].

Strategic Exit from US Operations

A pivotal move in FY25 was the exit from the US market, which eliminated drag on profitability and redirected resources to higher-growth regions. Excluding US operations, Underlying EBITDA improved to US$1.5 million, demonstrating the immediate impact of this decision [3]. By focusing on Australia and New Zealand, where it has secured new clients, the company is aligning with markets that offer stronger regulatory alignment and higher-margin opportunities [4].

Path to EBITDA Positivity in FY26

Change Financial’s FY26 guidance—revenue of US$16.5–18.0 million and Underlying EBITDA of US$2.5–3.5 million—reflects confidence in its strategic pivot [1]. The exit from the US and cost discipline are expected to reduce operating expenses, while PaaS adoption in key markets will drive margin expansion. Management has emphasized innovation in Vertexon’s offerings and tighter cost controls as critical enablers of this trajectory [4].

Risks and Considerations

While the outlook is optimistic, investors should monitor execution risks, such as client retention in the PaaS segment and the pace of market expansion in Australia and New Zealand. Additionally, the company’s reliance on a single platform (Vertexon) for growth necessitates continuous innovation to stay ahead of competitors.

Conclusion

Change Financial’s FY25 results and strategic realignment present a clear roadmap to EBITDA positivity. By leveraging its PaaS platform’s explosive growth, exiting unprofitable markets, and focusing on recurring revenue, the company is positioning itself as a high-conviction play in the fintech sector. For FY26, the projected EBITDA range of US$2.5–3.5 million represents a significant milestone, validating the effectiveness of its strategic pivot.

Source:
[1] Change Financial Exceeds FY25 Revenue Targets and Projects Positive Growth for FY26 [https://www.tipranks.com/news/company-announcements/change-financial-exceeds-fy25-revenue-targets-and-projects-positive-growth-for-fy26]
[2] Investor Presentation - FY25 Full Year Results [https://www.listcorp.com/asx/cca/change-financial-limited/news/investor-presentation-fy25-full-year-results-3235244.html]
[3] Change Financial Limited (ASX:CCA) - Announcements [https://www.intelligentinvestor.com.au/shares/asx-cca/change-financial-limited/announcements]
[4] Change Financial Ltd (ASX:CCA) (FY25) Earnings Call [https://finance.yahoo.com/news/change-financial-ltd-asx-cca-070032875.html]