Smartpay (SPY) H2 2025 earnings summary

Executive summary

• Achieved 8.5% year-over-year revenue growth, with FY25 revenue reaching $104.7m, driven by strong performance in Australia and New Zealand despite challenging macroeconomic conditions and competitive pressures.

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

• Entered an exclusivity period for a potential acquisition at NZD 1.20 per share, with no certainty of completion.

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

• Profit before tax normalised (excluding NZ pre-investment) was $4.8m, while reported PBT was -$0.1m, impacted by investment in NZ acquiring.

Financial highlights

• Revenue increased by AUD 8.2 million (8.5%) compared to the prior corresponding period, reaching $104.7m in FY25 from $96.5m in FY24.

• Consolidated gross margin maintained at 58% year-over-year, reflecting strong unit economics and cost control.

• 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 AUD 3.9 million, 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, with significant revenue growth anticipated from the New Zealand market.

• Awaiting final regulatory decision in New Zealand, which could further enhance customer acquisition opportunities; decision due July 2025.

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