Novatti announces increased revenue as it pivots back to growth

ASX-listed payments leader Novatti generated $14.3 million in revenue during Q4 FY25 and $52.4 million revenue for FY25, which represents an increase of 22%+ on FY24.

While both results represent records for their respective periods, as the company pivots back to growth, the focus is increasingly shifting to improving revenue composition, growing the A/NZ core business and achieving higher margin revenues.

Novatti continues to reform and adjust its revenue base by exiting high-cost, complex, or low margin business lines to align with its long-term financial goals, particularly its three-year, 70%+ margin target. An example of this approach from Q4 FY25 was the completion of the exit from wholesale Cross Border services that, despite its historical revenue contribution, were high-cost and low-margin, and therefore not aligned to long term financial targets.

Commenting on the company’s Q4 FY25 performance, Novatti CEO Mark Healy said, “Q4 FY25 marked Novatti’s pivot back to growth, following our continued efforts to streamline the business during FY24 and FY25, and the launch of our brand refresh in the prior quarter.

“Having achieved our near-term positive cash EBITDA target in the prior quarter, we elected to accelerate project investment in a payment platform upgrade including integration of a global tier-one processor, which will enhance customer experience, uplift product capabilities, and enable Novatti to pursue larger scale and higher margin opportunities.

“Through our pivot back to growth, we also accelerated the pursuit of several significant, new sales opportunities, capitalising on traction gained from our recent brand refresh. This led to several new commercial deals across the quarter, including the extension of card issuing services into New Zealand for a global fintech customer and enabling international tuition payments for a major New South Wales university. These activities contributed to a slight decrease in our cash EBITDA position for Q4 FY25 to negative $0.2 million, following the positive result milestone in the prior quarter, however we continue to target positive cash EBITDA in the near term.

“More broadly, we continue to see our turnaround shown through the reduction of cash used in operations for H2 FY25, which fell 48% on H1. This reflects the positive impacts of our previous cost reduction programs, and our continued focus on streamlining the business, flowing through to our financial results. These efforts continued during Q4 FY25, as we completed Emersion’s exit from the US market and closed several entities in Europe and Malaysia that are no longer required for our international payments services. All these efforts are enabling the business to pivot back to growth and, in particular, pursue larger-scale commercial opportunities through a leaner operating base and improving balance sheet.

“While we achieved our highest ever quarter of revenue at $14.3 million, moving forward we will continue to reform and adjust our revenue base by exiting high-cost, complex, or low margin business lines to align with our long term financial goals, particularly our three year, 70%+ margin target. An example of this approach from Q4 FY25 was the completion of our exit from our wholesale Cross Border services that, despite its historical revenue contribution, were high-cost and low-margin, and therefore not aligned to our long term financial targets.

“We have also invested in our leadership team, including the hiring of a new CFO, Hayden Vowell, who brings 15 years of experience in high-growth businesses across software, retail and technology sectors. Hayden joined Novatti from Culture Amp, a global SaaS leader in employee experience, where he was senior director of commercial finance. In addition to the CFO change, additional changes have also been made within the Finance function, including a new Group Financial Controller and other roles, to introduce new skills, capabilities and support the organisational shift from cost reduction, restructuring and our pivot back to growth.

“Q4 FY25 again highlights our commitment to doing what we say we will do. With the continued delivery of our turnaround strategy enabling Novatti to pivot back to growth in Q4, we expect Novatti’s financial performance to continue strengthening in the coming quarters.”