Change Financial's Explosive Growth Meets a Legacy Client Scare

Rapid growth in digital payment cards drove guidance for 1620% annual EBITDA growth, before news of expected legacy client churn hit the stock hard.

31 Jul 2026 · 3 min read

Change Financial delivered explosive earnings growth of up to 1620 percent year on year through its Vertexon payment platform, with active digital cards growing 66 to 70 percent and new customer onboarding including NZ fintech Hnry, before news of an expected legacy client churn impacting FY27 performance sent the stock down 33 percent despite confirmed FY26 guidance.

Explosive early growth beats guidance expectations

Merewether Capital said Change Financial announced first-quarter revenue of $7.1 million, up 25 percent, and EBITDA of $1.4 million, most positively a 22 percent increase in active debit cards on its payment platform compared with the end of FY25, with more customers onboarding and seasonally strong Christmas spending leaving the company well positioned to eclipse its guidance of $27.7 million revenue and $5.4 million EBITDA for the full year.

A 350% EBITDA jump and a well-priced entry

DMX Asset Management said it initiated a position when it participated in the selldown of a major shareholder, describing Change Financial as providing tailored payment solutions, card issuing and testing to banks and fintechs, with its Vertexon payment platform enabling delivery of digital and virtual card solutions, having delivered revenue growth of 29 percent and increased underlying EBITDA by 350 percent to $2.7 million for the half year to 31 December 2025, alongside record active cards. Merewether Capital said first-half revenue of $13.9 million and EBITDA of $2.7 million saw an upgrade to full-year guidance, with active digital payment cards up 66 percent on the prior year, trading on roughly 15 times operating earnings at the top end of guidance, a more than fair multiple for a scaling digital payments platform.

Active digital payment cards on CCA's platform increased 66% on last year, with growth set to continue with more customers currently being onboarded. Adjusting for some modest capitalised development spend, CCA trades on roughly 15x operating earnings at the top end of their guidance, a more than fair multiple for a scaling digital payments platform.

— Merewether Capital, Monthly Report, January 2026

1620% annual EBITDA growth guidance

DMX Asset Management said Change Financial confirmed FY26 EBITDA guidance in a range of US$3.1 million to US$3.8 million, a midpoint of US$3.44 million versus FY25 EBITDA of US$0.2 million, implying annual EBITDA growth of 1620 percent. Merewether Capital said the company continued to grow strongly and generate profits and cash flow, with cards on platform growing 70 percent on the prior year, driving 94 percent EBITDA growth, with continued growth expected from four new customers currently being onboarded, including NZ fintech Hnry, which will migrate 30,000 business debit cards to Change Financial.

Change Financial confirmed that its FY26 EBITDA is expected to be in the range of US$3.1m-US$3.8m, a mid-point of US$3.44m versus its FY25 EBITDA of US$0.2m, implying annual EBITDA growth of 1620%.

— DMX Asset Management, Monthly Report, April 2026

A legacy client churn scare sends the stock down 33%

DMX Asset Management said Change Financial was a significant detractor, falling 33 percent after confirming FY26 guidance but flagging that FY27 performance would be impacted by the loss of a legacy client, confirming FY26 guidance of $4.7 million on the back of a three-year revenue compound annual growth rate of 28 percent, though the positive result was somewhat offset by news of expected churn in legacy on-premises clients as they migrate away from the company.

What fund managers say they are watching next is onboarding progress with new customers including NZ fintech Hnry's 30,000 business debit card migration, resolution of the FY27 legacy client churn impact, continued growth in active digital payment cards on the Vertexon platform, and whether the stock's valuation recovers given the otherwise confirmed FY26 guidance.