Quarterly Activities/Appendix 4C Cash Flow Report
| Stock | Novatti Group Ltd (NOV.ASX) |
|---|---|
| Release Time | 31 Oct 2025, 9:14 a.m. |
| Price Sensitive | Yes |
Novatti reports positive operating cashflow and EBITDA
- Positive operating cashflow of $0.2m
- Positive EBITDA of $0.1m
- Available cash increases $1m to $3.6m
- Quarterly group margin up 100% to 54%
- Payments AU/NZ margin reaches 50%
Novatti Group Limited (ASX:NOV), a payments leader bridging traditional payments and regulated digital finance, has released its September 2025 quarter (Q1 FY26) Activities Report and Appendix 4C. The company achieved several key financial milestones, including positive operating cashflow of $0.2m and positive EBITDA of $0.1m. Available cash increased by $1m to $3.6m at the end of the quarter. Novatti's group margin saw a significant improvement, increasing by more than 100% to 54%, with the Payments AU/NZ business reaching a 50% margin. This progress is attributed to the continued reform of Novatti's revenue base, including the exit of a low-margin service to an overseas customer. The company has also secured a number of new commercial deals, including with a tier one Australian telco, a global airline, and a major NSW university. Novatti's Issuing business saw strong growth, with a 42% year-on-year increase in cards issued and sponsored in FY25, and the business line is now firmly EBITDA positive. The company is now focused on driving similar sales traction and growth in its Acquiring business, which has been bolstered by the shift in processing partner. Additionally, Novatti's 57% owned subsidiary, AUDC, saw its AUDD stablecoin become the first Australian Dollar stablecoin to go live on Coinbase, reflecting its accelerating use in digital payments and decentralised finance applications.
Novatti is targeting long-term financial goals, including margins of 70%+. The company's Payments AU/NZ business is now firmly EBITDA positive and growing steadily.
Novatti is focused on delivering its long-term financial targets, with significant progress already made. The company's pivot back to growth, sustained focus on margin contribution, and continued streamlining and delivery on the Au/NZ strategy are expected to drive further improvements.