Finseta final results 2025: revenue up 9%, but profit takes a step back
Finseta’s 2025 final results are a classic case of a business choosing growth over short-term profit. Revenue rose 9% to £12.4 million from £11.4 million, active customers increased to 1,101 from 1,059, and the company pushed ahead with expansion in Dubai, Canada and product upgrades in the UK.
The catch is that all this progress cost money. Adjusted EBITDA – a profit measure that strips out items such as depreciation, amortisation and some non-cash charges – dropped sharply to £0.2 million from £2.0 million, while Finseta moved to an operating loss of £1.2 million from an operating profit of £1.5 million a year earlier.
So, this is not a “profits are booming” update. It is more a “we’ve spent heavily now in the hope of stronger growth later” story.
Finseta 2025 key numbers retail investors should know
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue | £12.4 million | £11.4 million |
| Gross margin | 62.0% | 65.7% |
| Gross profit | £7.7 million | £7.5 million |
| Adjusted EBITDA | £0.2 million | £2.0 million |
| Operating profit/(loss) | (£1.2 million) | £1.5 million |
| Loss/(profit) before tax | (£1.3 million) | £1.4 million |
| Net cash/(debt) | (£0.3 million) net debt | £0.6 million net cash |
| Cash and cash equivalents | £1.5 million | £2.6 million |
| Basic EPS | (1.92)p | 1.74p |
Why Finseta revenue growth matters – and why margins slipped
The most interesting bit of the results is not just that revenue grew, but where it came from. Revenue from corporate accounts jumped 54%, and corporate clients made up 57% of total revenue in 2025 versus 41% in 2024.
That shift matters because Finseta is clearly trying to become more of a business-to-business payments platform and less reliant on high net worth individual clients. HNWI activity weakened because of macroeconomic conditions and tariff-related developments affecting foreign exchange activity, so the corporate side had to do more of the heavy lifting.
There is a trade-off here. Corporate business brings lower gross margins than HNWI clients, which is why gross margin fell to 62.0% from 65.7%. But management makes a fair point – corporate customers tend to transact more regularly, which should mean more repeatable revenue.
In plain English, Finseta is swapping some margin for better quality income. That is often a sensible move, provided the volumes keep growing.
Dubai, UK agency banking and Canada expansion drove the Finseta strategy
Dubai looks like the standout growth engine
The biggest strategic win in 2025 was Dubai. Finseta received a Category 3D licence from the Dubai Financial Services Authority in March 2025, opened a full-service office and integrated with a local banking partner.
The company says Dubai delivered significant revenue growth, ahead of management expectations. Headcount in Dubai has grown from three before regulatory approval to 13 today, which tells you this is not a box-ticking exercise. It is becoming a real part of the group.
There was another boost after the year end, when Finseta received a Retail Endorsement allowing it to serve retail clients in the UAE as well. That broadens the addressable market and supports the upbeat tone on current trading.
UK agency banking could be a bigger deal than it first sounds
Finseta completed UK agency banking in the third quarter of 2025. That lets it issue its own account numbers and sort codes, and gives it indirect access to Faster Payments, the UK system used to move money quickly between bank accounts.
This matters because it strengthens Finseta’s pitch to business customers. Instead of being just another foreign exchange provider, it can move closer to becoming a client’s main payments provider. If that lands well, it should help customer stickiness and cross-selling.
Canada is live, Europe is next on the wishlist
Finseta also commenced trading in Canada in 2025 and established local banking there. Europe is the next target, with part of the £0.9 million fundraise completed in April 2026 earmarked for progressing regulatory permissions.
That is promising, but it is still potential rather than delivered revenue. Investors should treat Europe as upside, not as something to bank on yet.
Finseta profits, cash and debt: the weak spots in these final results
This is where the numbers look less comfortable. Operating expenses rose to £8.9 million from £6.3 million as Finseta invested in sales teams, compliance, Dubai expansion and platform development.
Cash generated from operations fell hard to £0.4 million from £2.2 million, while cash used in investing activities was £1.1 million. As a result, year-end cash dropped to £1.5 million from £2.6 million, and the group moved from £0.6 million of net cash to £0.3 million of net debt.
That helps explain why the company raised £0.9 million before expenses after the year end. Management frames this as strengthening the balance sheet, which is true, but it also shows the business was starting to get a bit tight on cash.
There is also an £1.8 million loan note owed to Robert O’Brien, the company’s largest shareholder, repayable on 31 December 2028 with an 8.5% coupon. It is not an immediate cliff edge, but it is still debt that needs servicing.
Corporate card problems and impairment charge are worth watching
Not every strategic initiative is working perfectly. The Finseta Corporate Card had lower-than-expected uptake and ran into operational issues with key suppliers.
That led to an impairment charge of £0.2 million against the cards intangible asset, plus a provision of £125,757 linked to €150,000 received from a card partner because management thinks performance targets are unlikely to be met. That is not disastrous, but it is a reminder that new product launches do not always go to plan.
Current trading and outlook: why the board still sounds confident
The company says customer acquisition has continued to grow in 2026, with good traction among corporate clients and larger businesses with more complex requirements. Dubai’s momentum has also continued into 2026.
That forward-looking commentary is important because it supports the idea that 2025 was an investment year rather than the start of a deterioration. If revenue growth accelerates from here, the lower 2025 profitability may look like a sensible sacrifice.
If it does not, investors will start asking tougher questions about the return on all this spending.
My view on Finseta shares after the 2025 final results
I’d call this a mixed but credible update. The positive side is clear: revenue grew, corporate customer momentum looks real, Dubai appears to be working, and UK agency banking could materially improve the product offering.
The negative side is just as clear: profitability has weakened sharply, cash has fallen, the business needed fresh equity, and one new product has stumbled. Those are not small issues.
For retail investors, the key question is simple. Do you believe Finseta’s 2025 investment will translate into stronger revenue conversion and better profits in 2026 and beyond? The board plainly does. The evidence so far – especially in Dubai and corporate accounts – suggests that confidence is not coming from nowhere.
But this is still a prove-it story. Finseta has made strategic progress. Now it needs to show that progress can turn into consistent cash generation and proper earnings growth.
