• $12.9m quarterly revenue maintained - up 30% YoY
• Expenses down a further 7% QoQ and 28% YoY to $5.1m
• Payments AU/NZ quarterly gross margin up 15% YoY to 49% with further gains expected across CY25
• Expect to come within $30k of positive monthly operating cashflow in January and remain on track to achieve positive operating cashflow for the half-year ending June 2025

Novatti Group Limited (ASX:NOV), a leading fintech enabling businesses to pay and be paid, has released its December 2024 quarter (Q2 FY25) Activities Report and Appendix 4C. The company maintained high quarterly revenue of $12.9m, up 30% year-on-year, while reducing expenses by a further 7% on the prior quarter and 28% year-on-year to $5.1m. This was achieved through the implementation of Novatti's turnaround strategy, including a cost reduction program that has removed $9.8m in annualized costs from the business. Gross margin in Novatti's core Payments AU/NZ business increased to 49%, representing a 15% increase year-on-year, with further gains expected across FY25 as the company targets a 70%+ gross margin. As a result, Novatti expects to come within $30k of positive monthly operating cashflow in January and to achieve positive operating cashflow for the half-year ending June 2025. The company is also implementing new measures to grow sales and deliver higher margins, including a brand refresh, solution upgrades, and a focus on onboarding new merchants. Novatti's strategic review of its business units and subsidiaries remains ongoing, with active communication with parties interested in acquiring non-core assets. The company recently completed a capital raising of $7.032 million, with the proceeds allocated to unlocking internal growth, new business initiatives, and strengthening the balance sheet.

Novatti expects to come within $30k of positive monthly operating cashflow in January and to achieve positive operating cashflow for the half-year ending June 2025.

Novatti will continue to streamline and optimize its business, with the strategic review of all business units and subsidiaries ongoing. This includes active communication with parties interested in acquiring non-core assets. The company is also implementing new measures to grow sales and deliver higher margins, including a brand refresh, solution upgrades, and a focus on onboarding new merchants.