ASX-listed Novatti Group Limited, an Australian payments leader bridging traditional payments and regulated digital finance, have released its September 2025 quarter (Q1 FY26) results.
Highlights for the quarter include positive operating cashflow milestone reached of $0.2 million, positive EBITDA of $0.1 million and available cash increased $1 million to $3.6 million.
Commenting on the company’s Q1 FY26 performance, Novatti CEO, Mark Healy, said, “Q1 FY26 highlights the implementation of Novatti’s turnaround strategy, with key financial metrics continuing to progress towards Novatti’s long term financial targets. This includes Novatti delivering the significant milestone of positive quarterly operating cashflow during the quarter alongside positive EBITDA.
“The benefits of the continued reform of Novatti’s revenue base are playing a significant role here, with the benefits clear through these results. As an example, during the quarter Novatti completed the exit of a low-margin service to an overseas customer. While this service provided consistent revenue, it provided a margin contribution of 2% and no opportunity for improvement. Exiting this service alongside continued revenue streamlining saw Novatti’s group margin increase more than 100% to 54%, highlighting the drag this was previously having on Novatti’s performance. This increase to 54% also highlights the rapid progress now being made towards reaching Novatti’s long term target of 70% margins.
“Through our pivot back to growth, we have already closed multiple new commercial deals, including new or extended services for existing tier one customers. We are also now unlocking key drivers of Novatti’s future financial performance in the Au/NZ business. For example, Issuing saw 42% growth in cards issued and sponsored in FY25 following a focused sales effort, with this business line now firmly moving from negative EBITDA in FY23 to positive EBITDA across both FY24 and FY25. Our attention has now turned to delivering the same levels of structural growth from the Acquiring business, having now migrated all customers onto our new platform.
“The quarter finished with a key milestone of seeing AUDD list on Coinbase, becoming the first Australian Dollar stablecoin to do so. As AUDD gains stronger traction in market, Novatti continues to be exposed to any future upside here through its 57% interest in its issuer, AUDC Pty Ltd. This is just one example of the potential growth upside that Novatti has ahead of it.
“After working steadfast on Novatti’s turnaround strategy since the beginning of FY24, the results from Q1 FY26 highlight how these initiatives are flowing directly through to Novatti’s financial results. Novatti is now on the path to achieving its long-term financial targets, with significant progress already made. This progress will only benefit from our pivot back to growth, our clear and sustained focus on margin contribution, and the continued streamlining and delivery on the Au/NZ strategy. Our commitment remains to continue to do what we say we will do and deliver Novatti’s long term financial targets.”
