PaySauce Limited Analysis

Overview

PaySauce is a multiple award-winning cloud-based FinTech business, delivering Software as a Service payroll solutions to small and medium sized enterprises ("SMEs").

PaySauce has a particular focus on agricultural SMEs. PaySauce enables SME owners to pay staff accurately and efficiently using web, iOS, and Android applications. The PaySauce platform includes mobile timesheets, payroll calculations, banking integration, PAYE filing, labour costing, automated general ledger entries and digital employment contracts

PaySauce was founded in 2015 by Asantha Wijeyeratne, a New Zealand FinTech entrepreneur with a record of success in building SME service businesses, and Troy Tarrant, a software architect and developer with a background in creating payroll and human resource solutions. Their vision is to take the Kiwi-grown PaySauce software platform to businesses around the globe, helping SME owners spend less time paying staff and more time doing what they love.

Performance

The following information was extracted from PaySauce Limited's Full year results, released 27 May 2026:

FINANCIAL HIGHLIGHTS

• Operating revenue: $9.2m up 3% from $9.0m.
• Processing fee income: $7.2m up 13% lifted by a 5% increase in customers to 8,600.
• EBTDA: $1.2m, steady despite a step up in investment
• Net profit before tax: $0.17m down from $0.46m.

Chair Shelley Ruha called FY26 a defining year for PaySauce: “We believe this is a world leading payroll product and this significant milestone has been made possible by the strength of our New Zealand business, the commitment of our people, and the continued support of our shareholders, customers and partners.

The New Zealand business continued to perform strongly, generating the cash that has funded both the Global Payroll Platform and the significant milestone of the Australian launch. Processing fee revenue grew 13% to $7.2 million, and the business remained stable, profitable and cash-generative throughout the year, despite what was at times a challenging year for the economy.

FINANCIAL RESULTS

Annualised recurring revenue at the end of the period was 9.0 million, up 6% on FY25. Operating revenue for the year was $9.2 million, compared with $9.0 million in FY25.

This reflected solid growth in the core New Zealand business, with processing fee revenue increasing 13% to around $7.2 million from $6.3 million in FY25. That growth more than offset the expected reduction in interest income on funds held on behalf of customers, which declined to around $1.8 million from $2.3 million in FY25 as wholesale interest rates eased through the year.

Total customer numbers at year end grew to approximately 8,600, up 5% on the 8,200 achieved FY25. This growth was lower than the rate achieved in the previous year and reflected a strategic decision to discontinue the entry-level Simple plan during the year, delivering improved and more sustainable economics per customer.

Additionally, customer growth was limited by our decision to redirect time and resources toward establishing its position in Australia. This included pilot activity, launch preparation and the initial commercial rollout.

Processing fee revenue, the key driver of value creation in the business, continued to grow at a healthy 13% to $7.2 million from $6.3 million in FY25. This shift in revenue mix is important. It means more of the company’s performance is being driven by its core payroll product and customer activity, and less by interest income that is outside management’s control.

EBTDA was $1.2 million despite a step up in investment in product capability, sales and service readiness, and the broader foundations required to support expansion offshore. Reflecting similar factors, net profit before tax was $171k compared to the $460k achieved in FY25.