Smartpay (SPY) H2 2025 earnings summary

Executive summary

• Achieved consolidated revenue growth of 8.5% year-over-year to $104.7m, reflecting strong performance in Australia and strategic investment in New Zealand.

• EBITDA was $16.6m, with normalised EBITDA (excluding NZ pre-investment) at $21.5m, compared to $21.3m in FY24.

• Reported a small loss before tax of $0.1m, compared to a profit of $8.8m in the previous year, due to increased investment and higher depreciation/amortization.

• Advanced all stages of the three-stage strategic plan, including significant progress in launching New Zealand acquiring solutions and expanding Trans-Tasman offerings.

• Developed a trans-Tasman payments platform, with new POS/payment bundles and merchant ecosystem to launch in FY26.

Financial highlights

• Revenue increased to $104.7m in FY25 from $96.5m in FY24, up 8.5% year-over-year.

• EBITDA was $16.6m, with normalised EBITDA at $21.5m, reflecting underlying business strength.

• Net profit after tax was a loss of $0.3m, compared to a profit of $3.53m in FY24.

• Total transaction value processed reached $6.9bn, with 169m+ transactions and 51,000+ terminals in market.

• Depreciation and amortization rose by $3.9m, reflecting capitalized technology investments and contract amortization.

Outlook and guidance

• Expectation to convert a large portion of NZ terminal fleet (31,000+) to acquiring over next 3 years.

• NZ Commerce Commission review may reduce cost of acceptance, enhancing market opportunity; final decision due July 2025.

• Launch of new merchant ecosystem and bundled POS/payment solutions in FY26 targeting both AU and NZ markets.

• Anticipate significant revenue growth from the New Zealand market, leveraging a base of over 24,000 merchants.

• Operating average ratio expected to return to pre-investment levels as New Zealand revenues scale.