PaySauce (PYS) H2 2025 earnings summary

Executive summary

• Achieved strong growth, profitability, and positive free cash flow for the year ended 31 March 2025, marking the second consecutive year of positive and growing operating earnings.

• Processing fee revenue grew 18% year-over-year, with total recurring revenue up 14% and operating revenue rising 17% to $9.0m.

• Customer base expanded by 11% to 8,204, with new customers up 17% year-over-year and diversification into trades and construction.

• Customer satisfaction remained high at 94%, with churn below 1% per month.

• Advanced development of a unified multi-jurisdictional payroll product and expanded accounting partnerships.

Financial highlights

• Processing fees: $6.32m (up 18% year-over-year); interest income: $2.33m (up 6%).

• Total recurring revenue: $8.65m (up 14%); operating revenue: $9.0m (up 17%); gross margin: $6.71m (up 15%), gross margin percentage: 78%.

• EBTDA: $1.35m (up 29%); net profit before tax: $0.46m (up $0.27m); net profit after tax: $0.68m (includes $0.32m deferred tax asset in FY24).

• Free cash flow: $0.5m (up $0.2m year-over-year); net cash from operating activities up 47% to $2.2m.

• Customer lifetime value (CLTV): $55.3m (up 28% year-over-year).

Outlook and guidance

• Focus on accelerating customer growth and scaling operations in New Zealand, Australia, and the Pacific Islands, especially targeting microbusinesses.

• Continued investment in product development, user experience enhancements, and leveraging Gen 2.0 payroll engine for Australian market entry.

• Well positioned to build on recent successes and expand both domestically and offshore.