• Positive cash EBITDA of $100k achieved in Q3 FY25
• Record quarterly revenue of $13.4m, up 18% YoY
• Payments AU/NZ gross margin increased 6% QoQ to 52%

Novatti Group Ltd (ASX:NOV) has released its March 2025 quarter (Q3 FY25) Activities Report and Appendix 4C, highlighting the company's continued progress in its turnaround strategy. The key achievements include:- Positive cash EBITDA of $100k for Q3 FY25, a significant milestone in Novatti's turnaround. This was achieved through the execution of the company's cost reduction and restructuring programs, alongside continued revenue growth.- Record quarterly revenue of $13.4m, an increase of more than 18% year-over-year. This growth was maintained despite a 30% reduction in quarterly operational expenditure over the same period.- Gross margins in Novatti's core Payments AU/NZ business increased 6% quarter-on-quarter to 52%, the strongest ever quarterly performance. The company remains committed to achieving its longer-term target of 70%+ gross margins in this segment.- Net operating cash use decreased by $1.4m for the quarter to $2.2m, though this figure is still impacted by the ongoing removal of legacy liabilities as Novatti strengthens its balance sheet.- The launch of Novatti's brand refresh during the quarter, which has already resulted in new sources of inbound leads, particularly in high-margin services such as card issuing. The refresh also provides the sales team with a stronger value proposition to pursue larger commercial opportunities.- Continued focus on securing larger-scale commercial wins, including a tier one Australian telecommunications company renewing a multi-year service agreement and a contract to enhance the voucher payment offering for a major Asia-based global airline.

Novatti is focused on streamlining the business and increasing its focus on growth. The company aims to remain positive on a normalised cash EBITDA basis in Q4 FY25 as it continues to execute on its turnaround strategy.