PaySauce (PYS) H1 2025 earnings summary

Executive summary

• Achieved 17% year-over-year growth in ARR to $8.7m/NZD 8.7 million, with net profit after tax of $70k, a $337k improvement, and positive free cash flow up $252k to $199k.

• Customer base expanded 12% year-over-year to 7,821, supported by over 1,000 new customers and improved retention.

• Total customer lifetime value increased 24% to $50.5m, reflecting enhanced sales strategy and expanded industry reach.

• Significant investments in technology, infrastructure, and people, including payroll engine rebuild, AWS migration, and automation.

• Maintained profitability and financial sustainability, with improved operating and free cash flow.

Financial highlights

• Recurring revenue increased 20% year-over-year to $7.4m/$4.3m, with processing fee revenue up 20–23% and interest income up 5–20%.

• Revenue grew 27% year-over-year, while expenditure growth was limited to 20%, supporting profitability.

• Gross margin improved to 78%, up three percentage points year-over-year.

• EBTDA increased to $548k (13% margin), up from $255k (7% margin) year-over-year.

• Cost to acquire a customer rose to $575, while ARPU increased 8% to $92 per month.

Outlook and guidance

• Confident in reaching $10m ARR, with focus on scalability, product innovation, and customer experience.

• Continued investment in infrastructure, automation, and product enhancements to support growth.

• No significant change expected in interest revenue profile over the next six months despite falling interest rates.

• Migration of SmoothPay customers to a single platform targeted for completion within 12 months.

• Q3 2025 update expected early in the new year.