Finseta (AIM:FIN) reported revenue of £5.4m for the six months to 30 June, down from £5.9m a year earlier, as macroeconomic headwinds suppressed customer demand and lengthened sales cycles.
The AIM-listed payments company, which offers multi-currency accounts to businesses and individuals through its own technology platform, swung to an adjusted EBITDA loss of £1m from a £0.3m profit in the same period last year, reflecting continued investment in growth initiatives.
Gross margin improved to 66.1% from 62.7%, driven by corporate customers rising to 75% of the sales mix from 58%, with corporate revenue up 19% despite the tougher backdrop.
Dubai revenue grew 224%, though the pace was curtailed by the ongoing conflict in the Middle East, and Finseta secured a Retail Endorsement from the Dubai Financial Services Authority to serve retail clients alongside corporates.
"While our trading performance for the first half of the year was impacted by the challenging macroeconomic environment across our key markets, our core operational foundation remained strong, and we continued to increase our customer base," said chief executive James Hickman.
Active customers rose to 1,389 from 1,101, the loss before tax widened to £1.6m from £0.3m, and basic loss per share was 2.09p against 0.37p.
Cash stood at £2.1m at period end, up from £1.5m at 31 December, with net debt of £0.2m.
The Group expects second-half revenue broadly in line with H1 2026, with year-on-year gross margin improvement, after one banking partner withdrew a currency corridor post period-end; an alternative provider is expected in the fourth quarter.
News Intelligence what this means for the company
Finseta swung to a £1m adjusted EBITDA loss in H1 2026 as revenue fell 8% to £5.4m, despite gross margin expansion driven by a shift toward higher-margin corporate clients (now 75% of sales mix, up from 58%). The loss widened from a £0.3m profit a year earlier, reflecting continued investment spend against a backdrop of macroeconomic headwinds and lengthened sales cycles. Cash improved to £2.1m but remains tight relative to the operating burn, and management now expects H2 revenue broadly flat with H1—a material deceleration from prior expectations.
The company is burning cash operationally and has no clear path to profitability in the near term. While corporate customer growth (up 19%) and margin gains (66.1% gross margin) show underlying traction, the H1 loss and flat H2 guidance suggest the macro headwind is not lifting, and the recent loss of a banking partner's currency corridor (with replacement not expected until Q4) introduces near-term operational risk. At £2.1m cash and £0.2m net debt, the balance sheet offers limited cushion for sustained losses.
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