Finseta Reports 9% Revenue Growth Amid Tariff Uncertainty

Finseta announced a revenue increase to £12.4 million for the year ending December 31, 2025, representing a 9% rise from the previous year’s £11.4 million. This growth rate marks a slowdown from the 26% expansion seen in 2024, when the company’s revenue reached £11.3 million. The forex and payments provider, which is listed on the London Stock Exchange (LSE: FIN), reported an increase in active customers to 1,101, up from 1,059 in 2024. However, the customer count had stabilized since mid-year, indicating a plateau in new client acquisition in the latter half.

The revenue mix has shifted significantly, with corporate client revenue surging by 54% compared to 2024, now contributing 57% of total earnings. This contrasts with the previous year, where corporate accounts made up just 41% of revenue. The change is attributed to a reduction in activity by high-net-worth individual clients, who typically offer higher margins, due to global economic uncertainties linked to tariffs.

Finseta CEO James Hickman stated, “While our revenue growth was constrained by macroeconomic factors, the strategic progress and investments we made during the year position us to broaden our offering, accelerate sales growth and increase profitability in the medium term.” The company’s gross margin declined to approximately 61% from 65.7% in 2024, reflecting increased reliance on corporate clients who transact frequently but at lower margins. Adjusted EBITDA fell to £0.1 million from £2.0 million the previous year, impacted by planned investments in sales, compliance, and overheads.

The Dubai operation has outpaced initial expectations since receiving regulatory approval in March 2025 to offer payment services in the UAE under a Category 3D license from the Dubai Financial Services Authority. The rapid expansion necessitated additional investment in the sales team to support growth in the region. A new office was established in the Dubai International Financial Centre, with recruitment underway for sales and compliance roles to attract corporate and professional clients and strengthen the partner network. The management anticipates positive contributions to group profitability from the UAE by 2026.

In 2025, Finseta also opened a full-service office in Canada, launched a corporate card initiative, forged new counterparty partnerships, and introduced UK agency banking capabilities in the third quarter. This new banking function allows Finseta to issue its own account numbers and connect to the Faster Payments System indirectly.

The company’s cash and cash equivalents decreased to £1.5 million by year-end, from £2.6 million the previous year. This decline primarily results from reduced operating cash flow in 2025 and approximately £1.1 million spent on investment activities related to strategic growth plans. Total operating costs remained within the board’s expectations as disclosed in the interim results in September 2025.

Management expects a return to cash flow generation in the second half of 2026, as investments in Dubai, Canada, and new products begin to boost revenue growth. The company’s forward-looking strategy is aimed at solidifying its market position and enhancing profitability in the coming years.