WRKR's Regulatory Tailwind Is Bigger Than Its Rough May

Fund managers say a stronger cash receipts trend and live super fund partnerships still support a path to FY27 profitability

31 May 2026 · 4 min read

Ellerston Capital's May 2026 monthly report described a business whose share price and operating detail are telling different stories. WRKR gave up more than 20 per cent during the month after a mixed third-quarter trading update, even though the manager said cash receipts were stronger than expected, driven by recurring revenue from Wrk Pay transaction activity and the Paidright acquisition. Free cash flow was softer, reflecting increased investment in growth and additional headcount, but the manager noted REST Pay is now live and off to a good start, and that Australian Super had reported strong take-up following its release. The company continues to onboard multiple smaller super funds and, in the manager's words, the story remains intact.

Pleasingly, REST Pay is live and off to a good start, and Australian Super reported strong take-up following its release. The company expects to be profitable in FY27, underpinned by customer wins, and structural regulatory tailwinds.

— Ellerston Capital, Monthly Report, May 2026

Built on a regulatory tailwind

WRKR's growth case is closely tied to the Payday Super reforms taking effect from 1 July 2026, which introduce real-time superannuation contributions alongside a payment or salary, faster allocation timeframes for funds and revised penalties for employers that miss deadlines. Salter Brothers, which first invested in September 2024's capital raise, described WRKR in an August 2025 monthly report as a regulatory technology business for Australian employers that digitally solves compliance moments from onboarding through to processing pay and super contributions, and said it had continued to build a meaningful position, including participation in the company's most recent capital raise.

The signing of AustralianSuper, the country's largest profit-to-member superannuation fund with more than 3.5 million members and over $365 billion under management, was a pivotal moment in that story. Saville Capital reported in July 2025 that MUFG Retirement Solutions, in partnership with WRKR, had been selected to deliver a comprehensive digital platform to enhance AustralianSuper's clearing house, gateway and digital employer services, a deal it said gave WRKR a foundation client for other funds to follow and pushed the business a long way toward its initial target of 7 million platform users, up from around 500,000 at the time.

A capital raise that drew institutional demand

Saville Capital's August 2025 update also captured how the market reacted to WRKR's subsequent $15 million capital raising, undertaken to accelerate preparations for Payday Super and capitalise on the revenue opportunity it saw building ahead of the reforms. The manager said demand from new institutional investors was significant, evidenced by the stock finishing the month at 11 cents on very strong turnover despite the raising being priced at 9 cents a share, having first invested at 2.5 cents in August 2024.

What managers are watching next

With REST Pay now live and Australian Super's take-up reported as strong, the near-term questions for managers are whether WRKR can convert its remaining pipeline of unsigned MUFG clients and payroll provider partnerships into further foundation-client wins, and whether the company's targeted return to profitability in FY27 arrives on schedule as the Payday Super reforms take full effect.