Finseta Revenue Growth Slows to 9% as Tariff Uncertainty Weighs on FX Activity

Finseta reported revenue of £12.4 million for the year ended December 31, 2025, marking a 9% increase from the prior year's £11.4 million. The growth rate represents a significant deceleration from the 26% expansion the company achieved in 2024, when underlying revenue climbed to £11.3 million.

The London-listed (LSE: FIN) forex and payments provider ended the year with 1,101 active customers, up from 1,059 in 2024. The company had already reached that customer count by mid-year, suggesting customer acquisition stalled in the second half.

Finseta Corporate Business Surges While Individual Clients Pull Back

Corporate client revenue jumped 54% compared with 2024 and accounted for 57% of total revenue, reversing the prior year's mix when corporate accounts contributed just 41%. The shift came as high-net-worth individual clients, who typically generate higher margins, reduced activity amid global economic uncertainty linked to tariff developments.

"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," CEO James Hickman said.

The company's gross margin compressed to approximately 61% from 65.7% in 2024, reflecting the heavier weighting toward corporate clients who transact at lower margins but with greater frequency. Adjusted EBITDA dropped to £0.1 million from £2.0 million in the prior year as planned investments in sales teams, compliance functions, and overhead ate into profits.

Dubai Operation Ramps Up Faster Than Anticipated

Finseta received regulatory approval in March 2025 to provide payment services in the United Arab Emirates through a Category 3D license from the Dubai Financial Services Authority. The Dubai operation grew faster than the board initially expected, prompting additional investment in the sales team to support accelerated expansion in the region.

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The company established a new office in the Dubai International Financial Centre and began hiring for sales and compliance roles to onboard corporate and professional clients while building its partner network.

Management expects the expanded UAE business to contribute positively to group profitability starting in 2026.

During 2025, Finseta also established a full-service office in Canada, launched its corporate card scheme, formed new counterparty partnerships, and implemented UK agency banking in the third quarter. The agency banking capability allows Finseta to issue its own account numbers and connect indirectly to the Faster Payments System.

Cash Position Weakens as Investment Cycle Continues

Cash and cash equivalents stood at £1.5 million at year-end, down from £2.6 million twelve months earlier. The company reported net debt of £0.3 million compared with net cash of £0.6 million at the end of 2024.

The deterioration primarily reflects reduced operating cash flow in 2025 and approximately £1.1 million in cash outflows from investing activities tied to the company's strategic growth initiatives. Total operating costs for the year came in line with board expectations disclosed at the interim results in September 2025.

Management expects to return to cash flow generation in the second half of 2026 as the investments in Dubai, Canada, and new product offerings begin to drive revenue growth.