Smartpay (SPY) H1 2025 earnings summary

Executive summary

• Revenue increased 8% year-over-year to $50.8m for the six months ended 30 September 2024, driven by Australian market expansion and terminal fleet growth in both Australia and New Zealand.

• Operating cash flow reached $10.0m, supporting growth initiatives and the acquisition of a New Zealand competitor’s terminal fleet.

• Terminal fleet expanded to over 55,000 units across Australia and New Zealand, serving 40,000+ merchants.

• Strategic progress includes launching New Zealand acquiring, executing key partnerships, and preparing for regulatory changes.

• Launched major brand campaign and next-generation Android terminal in Australia, receiving strong customer feedback.

Financial highlights

• EBITDA was $8.8m (normalised $7.9m), down from $9.6m in 1H24, reflecting increased investment and costs.

• Profit before tax was $0.7m (normalised loss of $0.2m), down 81% year-over-year.

• Free cash used for asset acquisition was ($4.1m), with net debt position of $2.8m at period end.

• Total transaction value processed reached $3.3bn, up from $3.0bn in 1H24.

• Basic and diluted EPS: 0.38 cents for 1H25, compared to 3.53 cents in 1H24.

Outlook and guidance

• New Zealand acquiring rollout remains on track, with piloting to begin in early 2025 and full rollout expected in H2 FY25.

• Strategic partnerships to deliver next-generation merchant ecosystem and POS/payment solutions across Australasia in FY26.

• Operating leverage expected to improve as NZ revenues come online.

• Full-year results to be announced May 26, 2025; AGM scheduled for July 17, 2025.

• Engagement with the Reserve Bank of Australia review, with regulatory outcomes expected to impact the business from mid-2027.