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Finseta posted slower growth. The forex and payments company saw revenue hit £12.4 million for 2025, up from £11.4 million the year before, but that’s way down from the 26% jump they pulled off in 2024.
The London-listed firm ended the year with 1,101 active customers, barely up from 1,059 in 2024. Customer growth pretty much stalled in the second half as global tariff fears spooked individual clients. Corporate business absolutely surged though, jumping 54% and now makes up 57% of total revenue compared to just 41% the previous year. High-net-worth individuals basically pulled back hard due to economic uncertainty around trade policies.
Things shifted fast for Finseta.
CEO James Hickman said the company made strategic progress despite headwinds. “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,” he told investors. The focus on corporate clients came at a cost though – gross margins fell to around 61% from 65.7% in 2024 since corporate deals carry lower margins despite higher volume.
Adjusted EBITDA took a hit, dropping to £0.1 million from £2.0 million the year before. The company spent heavily on sales teams and compliance staff to support expansion plans. Dubai operations expanded faster than anyone expected after Finseta got regulatory approval in March 2025 with a Category 3D license from the Dubai Financial Services Authority.
Not really surprising given the growth potential there.
The UAE push led to a new office in the Dubai International Financial Centre plus aggressive hiring for sales and compliance roles. Management thinks the expanded UAE business will start contributing to group profits in 2026. Finseta also opened a full-service office in Canada during 2025, launched a corporate card scheme, and implemented UK agency banking that lets them issue their own account numbers.
Cash position weakened significantly though. Year-end cash and equivalents dropped to £1.5 million from £2.6 million previously, while net debt hit £0.3 million versus a net cash position of £0.6 million in 2024. The decline came from reduced operating cash flow and about £1.1 million in cash outflows for strategic growth initiatives across Dubai and Canada.
Management expects positive cash flow to return in the second half of 2026. That timeline depends on revenue growth from Dubai, Canada, and new products actually materializing as planned. The shift toward corporate clients aligns with broader expansion goals since these accounts offer stability and volume despite lower margins.
The Dubai office became pivotal for Middle East expansion after opening in early 2025. According to the board, unexpected growth pace in the region forced additional resource allocation. The Canadian operations reflect commitment to global expansion too – the Toronto office launched mid-2025 to capitalize on that city’s financial hub status.
CFO Sarah Donovan said during January’s investor call that the firm is exploring additional funding options. She emphasized maintaining balance sheet health while pursuing aggressive growth. “We’re looking at all options to support our momentum,” Donovan said, noting operational flexibility remains key.
The corporate card scheme introduced in 2025 adds value for business clients. It’s designed to streamline transactions and boost client retention in an increasingly competitive market. The UK agency banking connection to the Faster Payments System also enhances service capabilities.
Dubai’s Category 3D license approval on March 10, 2025 marked a crucial regulatory milestone. The license allows Finseta to tap into UAE’s burgeoning financial markets and provides a gateway to broader regional opportunities. The Toronto location was specifically chosen for its banking and finance center status.
Individual client pullback hurt revenue mix despite corporate surge. Tariff concerns and global economic uncertainty drove high-net-worth individuals to reduce activity significantly. The company didn’t specify exact individual client revenue decline figures.
Revenue growth deceleration from 26% to 9% shows how macroeconomic factors impacted performance. The customer base grew only 42 clients compared to much larger gains in previous periods. Corporate clients now dominate the revenue mix at 57% versus individual clients.
Dubai hiring accelerated beyond initial plans as business development exceeded expectations. Sales and compliance staff additions support the rapid regional expansion. Canada’s full-service office represents the first major North American expansion for the payments provider.
Cash burn of over £1 million for strategic initiatives strained finances. The shift from net cash to net debt position reflects heavy investment in growth. Management remains confident about 2026 cash flow recovery based on expansion investments paying off.
Finseta’s aggressive international push continues despite financial strain. The company operates in an increasingly competitive payments landscape where scale and geographic reach matter. Dubai and Canada represent key growth markets for future revenue expansion.
The forex and payments sector has seen intense consolidation pressure in recent years, with larger players like Wise and Remitly capturing significant market share through aggressive pricing and technological innovation. Finseta’s pivot toward corporate clients mirrors industry-wide trends as companies seek more stable revenue streams amid volatile individual transaction volumes. Regulatory costs have also surged across multiple jurisdictions, forcing smaller players to either scale rapidly or risk being squeezed out by compliance expenses.
Dubai’s financial services sector attracted over $4.2 billion in fintech investments during 2024-2025, making it one of the fastest-growing payments hubs globally. The UAE’s strategic position between European and Asian markets creates natural advantages for cross-border payment providers. However, competition has intensified with established players like PayPal and newer entrants from Singapore and Hong Kong all vying for regional dominance. Canada’s payments market, valued at approximately CAD $89 billion annually, offers significant opportunities but requires substantial regulatory navigation given the country’s complex provincial banking frameworks.
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