Windcave profit rises as cash position strengthens

Windcave reported higher profitability for the nine-month period ended 31 December 2025, with earnings increasing despite revenue remaining broadly in line with the prior reporting period.

The payments technology company recorded revenue of NZD $402.0 million for the nine months, compared with NZD $403.7 million in the 12 months to 31 March 2025. Profit before income tax increased to NZD $59.1 million from NZD $54.6 million, while net profit attributable to owners rose to NZD $42.4 million from NZD $40.7 million.

The latest accounts cover nine months following a change in the company's balance date, making direct comparisons with the previous 12-month reporting period indicative rather than like-for-like.

Profit growth

Windcave improved earnings despite a slight decline in reported revenue.

Gross profit totalled NZD $126.2 million, compared with NZD $144.2 million in the previous financial year. Cost of sales increased to NZD $275.8 million from NZD $259.5 million.

Other income rose to NZD $2.8 million from NZD $760,238. Finance income increased to NZD $5.5 million from NZD $3.1 million. Finance expenses fell substantially to NZD $5.5 million from NZD $10.4 million.

Employee-related expenses declined to NZD $42.3 million from NZD $50.9 million, while occupancy expenses decreased to NZD $3.7 million from NZD $4.9 million. Other operating expenses also fell to NZD $23.8 million from NZD $27.3 million.

These reductions helped lift profitability despite lower gross profit.

Balance sheet

Total assets increased to NZD $456.7 million at 31 December 2025 from NZD $344.6 million at 31 March 2025. Current assets rose to NZD $404.5 million from NZD $296.7 million.

Cash and cash equivalents more than doubled to NZD $108.1 million from NZD $46.7 million. Trade and other receivables increased to NZD $286.7 million from NZD $233.0 million.

Property, plant and equipment rose to NZD $34.6 million from NZD $22.9 million following continued investment in operational infrastructure.

Total liabilities increased to NZD $377.7 million from NZD $265.3 million. Interest-bearing loans and borrowings reached NZD $190.6 million, up from NZD $134.8 million. Trade and other payables rose to NZD $174.6 million from NZD $130.5 million.

Net assets stood at NZD $79.1 million, compared with NZD $79.4 million previously. Retained earnings remained largely unchanged at NZD $81.0 million after dividend payments during the period.

Cash flows

Operating cash flow strengthened significantly during the reporting period.

Net cash generated from operating activities reached NZD $39.2 million, compared with NZD $14.2 million in the previous financial year. Customer receipts totalled NZD $475.6 million. Tax payments amounted to NZD $10.3 million.

Windcave invested NZD $10.5 million in property, plant and equipment and intangible assets. This was more than double the NZD $4.4 million invested during the prior period.

Financing activities generated a net inflow of NZD $32.7 million. The company increased borrowings by NZD $50.6 million during the period. Dividend payments totalled NZD $34.2 million.

The combination of stronger operating cash generation and additional financing contributed to a net increase in cash and cash equivalents of NZD $61.3 million, lifting the year-end cash balance to NZD $108.1 million.

Shareholder returns

Windcave continued to return capital to shareholders while maintaining profitability.

The company paid dividends of NZD $42.5 million during the nine-month reporting period, compared with NZD $26.7 million in the previous financial year.

Comprehensive income attributable to owners totalled NZD $42.1 million. This reflected the net profit of NZD $42.4 million and a foreign currency translation loss of NZD $305,416.

The results show Windcave entering 2026 with larger cash reserves, higher operating cash flow, and increased profitability, alongside a larger asset base and higher borrowings.