PaySauce Limited/Announcement
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PaySauce FY26 Full Year Result and Annual Report

Full Year Results26 May 2026PYSInformation Technology

AUDITED FINANCIAL RESULTS FOR THE YEAR TO 31 MARCH 2026
PaySauce shifts gear with Australian payroll launch


Lower Hutt, New Zealand – 27 May 2026

Software-as-a-Service fintech PaySauce (NZX: PYS) PaySauce Limited (NZX: PYS)

today reports financial and operational results for the year to the end of March

2026 showing continued strong growth in its core New Zealand business and

significant strategic progress towards realising the opportunities it sees in Australia

and further afield.


FINANCIAL HIGHLIGHTS

1


● Operating revenue: $9.2m up 3% from $9.0m.

● Processing fee income: $7.2m up 13% lifted by a 5% increase in customers

to 8,600.

● EBTDA

2

: $1.2m, steady despite a step up in investment

● Net profit before tax: $0.17m down from $0.46m.


Chair Shelley Ruha called FY26 a defining year for PaySauce: “We believe this is a

world leading payroll product and this significant milestone has been made

possible by the strength of our New Zealand business, the commitment of our

people, and the continued support of our shareholders, customers and partners.


“The New Zealand business continued to perform strongly, generating the cash

that has funded both the Global Payroll Platform and the significant milestone of

the Australian launch. Processing fee revenue grew 13% to $7.2 million, and the

business remained stable, profitable and cash-generative throughout the year,

despite what was at times a challenging year for the economy.


Chief Executive Officer and Co-Founder Asantha Wijeyeratne said: “At the start of

this financial year our priorities were clear: continue to grow and strengthen the

New Zealand business, complete the key milestones required to bring our next

generation Global Payroll Platform into live use in Australia, and prepare the

company for its next stage of growth.


“I am proud of the progress we have made across each of those fronts. We built,

tested and launched the platform in Australia, and we are now focused on turning

that readiness into customer acquisition. Australia’s 694,000 micro-businesses

now have access to a payroll platform that is unmatched in the market, delivering

an intuitive easy-to-use mobile interface that also offers the peace of mind that

comes with compliance.”

1

All comparisons are against FY25 unless otherwise stated.

2

Earnings before tax depreciation and amortisation is a non-GAAP measure of financial performance. It is defined

and reconciled to the GAAP measure of net profit on page 22 of the company’s annual report released to the NZX

today and available on the company’s website


FINANCIAL RESULTS


Annualised recurring revenue at the end of the period was 9.0 million, up 6% on

FY25. Operating revenue for the year was $9.2 million, compared with $9.0 million

in FY25.


This reflected solid growth in the core New Zealand business, with processing fee

revenue increasing 13% to around $7.2 million from $6.3 million in FY25. That

growth more than offset the expected reduction in interest income on funds held

on behalf of customers, which declined to around $1.8 million from $2.3 million in

FY25 as wholesale interest rates eased through the year.


Total customer numbers at year end grew to approximately 8,600, up 5% on the

8,200 achieved FY25. This growth was lower than the rate achieved in the previous

year and reflected a strategic decision to discontinue the entry-level Simple plan

during the year, delivering improved and more sustainable economics per

customer.











Additionally, customer growth was limited by our decision to redirect time and

resources toward establishing its position in Australia. This included pilot activity,

launch preparation and the initial commercial rollout.


Processing fee revenue, the key driver of value creation in the business, continued

to grow at a healthy 13% to $7.2 million from $6.3 million in FY25. This shift in

revenue mix is important. It means more of the company’s performance is being

driven by its core payroll product and customer activity, and less by interest

income that is outside management’s control.




EBTDA was $1.2 million despite a step up in investment in product capability, sales

and service readiness, and the broader foundations required to support expansion

offshore. Reflecting similar factors, net profit before tax was $171k compared to the

$460k achieved in FY25.


Further commentary on our results is included in the FY26 annual report released

to the NZX today.





BALANCE SHEET AND CASHFLOW


During the year, we materially strengthened the balance sheet through a

successful $5 million capital raise to support the acceleration of our Australian

strategy. We ended the year with net cash, excluding funds held on behalf of

customers, of $4.5 million.


Together with the strong operating cash flow ($2.0 million in FY26 vs $2.2 million in

FY25) generated by our New Zealand business, this capital provides the resources

to drive growth with investment in sales, marketing, customer support and

product development, and gives us the flexibility to manage broader economic

volatility.


This marks an important shift for the company. Over the past two years, our New

Zealand business has funded the development of the Global Payroll Platform and

the Australian pilot from internally generated cash. With a stronger balance sheet,

we are now better placed to move from proving the Australian opportunity to

delivering on its promise.



OUTLOOK


Wijeyeratne said the focus in the new financial year was on disciplined execution;

building momentum, learning quickly, and investing carefully as the company

scales.


“PaySauce is targeting a large and underserved micro-business market facing

genuine payroll complexity, and during FY26 the company demonstrated that our

platform can solve those problems in a live operating environment. The task now is

to convert our strategic progress into the recruitment of new customers.


“New Zealand remains the foundation of our group, driven by a loyal customer

base, strong product-market fit and a reputation for delivering accessible payroll

solutions for micro-businesses. As we turn our attention back to customer

acquisition and growth our strategy includes unifying our New Zealand uses onto

our Global Payroll Platform. During this transition, we anticipate that some legacy

customers may no longer align with our target profile.


“At the same time, we remain realistic about the environment. Lower wholesale

interest rates are likely to continue weighing on interest income. Meanwhile,

Australian revenue will build through the year rather than arrive all at once,”

Wijeyeratne said.



“For that reason, management’s focus will remain on disciplined execution, careful

allocation of capital, and maintaining the balance between growth and

profitability. We look forward to providing an update in July when we release our

first quarter results.”


Released for and on behalf of PaySauce by PaySauce CFO Jaime Monaghan


ENDS


ABOUT PAYSAUCE

PaySauce is a SaaS fintech platform delivering digital payroll solutions across 14

jurisdictions in Asia-Pacific. The technology enables small employers to digitally

onboard, pay and manage employees from any device. The platform includes

rosters, mobile timesheets, payroll calculations, banking integration, automated

payments, PAYE filing, labour costing, and automated general ledger entries. The

PayNow feature enables customers’ employees to access the pay they’ve earned

before payday, providing a free alternative to payday lenders. www.paysauce.com


CONTACT


Jaime Monaghan

CFO PaySauce

+64 22 5246366

Please direct any investment queries to investor@paysauce.com

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)

Results for announcement to the market

Name of issuer PaySauce Limited

Reporting Period 12 months to 31 March 2026

Previous Reporting Period 6 months to 30 September 2025

Currency New Zealand Dollar

Amount (000s) Percentage change

Revenue from continuing

operations

$9,247 3%

Total Revenue $9,247 3%

Net profit/(loss) from continuing

operations

$290 -57%

Total net profit/(loss) $290 -57%

Interim/Final Dividend

Amount per Quoted Equity

Security

It is not proposed to pay a dividend

Imputed amount per Quoted Equity

Security

Not Applicable

Record Date Not Applicable

Dividend Payment Date Not Applicable

Current period Prior comparable period

Net tangible assets per Quoted

Equity Security (in dollars and

cents per security)

$0.02143277 -$0.00271095

A brief explanation of any of the

figures above necessary to enable

the figures to be understood

Please refer to the attached financial statements and

announcement

A uthority for this announcement

Name of person authorised to

make this announcement

Jaime Monaghan

Contact person for this

announcement

Jaime Monaghan

Contact phone number +64 22 5246366

Contact email address investor@paysauce.com

Date of release through MAP 26 May 2026

Audited financial statements accompany this announcement.

---

2026 Annual Report
PaySauce.

One engine.

Two markets.


Our first Australian customers, Stuart and Belinda Griffin, Griffintine Dairy, Westbury, Gippsland, Victoria, Australia

1

Australia presents a total addressable market of almost 700,000
micro-businesses. These businesses face a significant and growing

compliance burden, particularly concerning the Fair Work Act,

complex award interpretations, and superannuation rules.


Following the successful pilot, the product is now in use in Australia, with dairy farmers and other

small businesses now using our Global Payroll Platform to:

• Calculate their staff’s wages, tax and superannuation deductions in accordance with the

pastoral award;

• Complete filing with the Australian Tax Office (ATO);

• Transfer the money to their staff’s bank accounts in near real-time with PayTo; and

• Do all of that from their mobile phone.

In January 2026, we completed a $5m capital raise, which was 25% over-subscribed. Some of

that capital has been deployed into completing the build of our Global Payroll Platform and some

will support the sales and marketing effort to bring it to market in Australia. That has opened

the door to a micro-business employer market roughly seven times the size of New Zealand.

As signalled in our Interim Report, we’ve executed on a disciplined and targeted go-to-market

strategy. We launched at the Australian Dairy Conference in February, and the initial feedback

from our foundation customers in Australia is exceptional!

Contents

Leadership messages 04

Leadership team 11

New Zealand 12

Australia 18

Performance 22

Financial statements 29

Corporate governance 48

Company directory & investor calendar 58

PaySauce has

crossed the ditch

This report provides a summary review of PaySauce’s operational and financial performance

for the year to 31 March 2026. It should be read in conjunction with the company’s financial

statements on pages 29 to 47 of this report. The information provided in this report has been

compiled in accordance with relevant law, rules, and corporate governance recommendations

for investor reporting. Financial information has been prepared in accordance with appropriate

accounting standards and has been audited by Grant Thornton Limited. Throughout this report

we have focused on what we believe matters most to our stakeholders and our business. We have

endeavoured to ensure all information is accurate through internal verification and other approval

processes.

2

Highlights
8,600

$5.0m

$1.2m

Customers

Capital raised

EBTDA

+ 5% YOY

$57.2m

Total Customer Lifetime Value

+ 3%

$9.0m

Recurring Revenue

+ 4% YOY

Processing fee growth of 13% reflects underlying business strength. Despite higher

customer funds held, interest income declined due to lower wholesale interest rates

All comparisons are against the previous year

Processing fees Interest

- 22 % YOY+ 13% YOY

Earned direct from customers

Net profit $0.3m after tax

Placement + SPP

-$0.1m YOY

$87

ARPU/mo

$6,656

per customer

8.2 yrs

avg lifetime

7:1

LTV:CAC

$7.2m

$1.8m

3

FY26 was a defining year for PaySauce. After two years of focused investment, we
deployed our Global Payroll Platform into Australia, with our first customers running live,

compliant payrolls through the system. Early customer feedback has been exemplary,

and the platform is now ready for commercial rollout in the new financial year.

We believe this is a world leading payroll product and this significant milestone has been

made possible by the strength of our New Zealand business, the commitment of our

people, and the continued support of our shareholders, customers and partners.

The New Zealand business continued to perform strongly, generating the cash that

has funded both the Global Payroll Platform and the Australian launch. Processing fee

revenue grew 13% to $7.2 million, and the business remained stable, profitable and

cash-generative throughout the year, despite what was at times a challenging year for

the economy.

Ready for the

Australian

opportunity

Shelley Ruha

Independent Director, Chair

4

LEADERSHIP MESSAGES

Processing fee revenue grew strongly, our customer base expanded further, and we
continued to find disciplined ways to improve internal efficiency and strengthen the

PaySauce customer proposition. We are also preparing for a staged transition of New

Zealand customers to the Global Payroll Platform over time, so more customers can benefit

from the improved experience as it is rolled out.

We are deliberately focused on strategic moves that build shareholder value over the

medium term. However, we are also determined to retain financial discipline as we go after

this substantial opportunity. This discipline has been shown again this financial year, with us

achieving all of our strategic priorities, whilst still remaining profitable and cash-generative.

We have a robust financial platform, established technical capability and proven product

market fit which positions the company well for the next phase of growth.

Financial results

Annualised recurring revenue

at the end of the period was

approximately $9.0 million, up 6%

on FY25.

Operating revenue for the year

was approximately $9.2 million,

compared with $9.0 million in FY25.

This reflected solid growth in the

core New Zealand business, with

processing fee revenue increasing

13% to around $7.2 million from

$6.3 million in FY25. That growth

more than offset the expected

reduction in interest income on

funds held on behalf of customers,

which declined to around $1.8

million from $2.3 million in FY25

as wholesale interest rates eased

through the year.

Total customer numbers at year

end grew to approximately 8,600,

up 5% on FY25. This growth was

lower than the rate achieved in

the previous year and reflected a

strategic decision to cease offering

our lowest-value product to direct

customers, delivering sustainable

economics per customer. The

growth also reflects a deliberate

redirection of management focus

and resources toward Australia,

where we see a market roughly

seven times larger than New

Zealand. And this redirection

of focus has resulted in quick

succession the pilot activity,

launch preparation and the initial

commercial rollout.

Processing fee revenue, the key

driver of value creation in the

business, continued to grow at a

healthy 13% to $7.2 million from $6.3

million in FY25. This shift in revenue

mix is important. It means more

of the company’s performance

is being driven by its core payroll

product and customer activity,

and less by interest income that is

subject to interest rates which are

outside management’s control.

EBTDA was $1.2 million despite

meaningful step-ups in product

investment, sales readiness and the

foundations for offshore expansion.

Despite similar factors, net profit

before tax was $0.2 million,

compared to the $0.5 million

achieved in FY25.

Balance sheet and

cashflow

Our successful oversubscribed

capital raise was an important

moment for the company.

Shareholders, both existing and

new, backed our strategy of

accelerating into Australia from a

position of operating strength. We

are grateful for that support and

conscious of the responsibility

it carries and we welcome the

increased liquidity for what has

been a particularly tightly held

company.

We ended the year with net cash,

excluding those held on behalf of

customers, of $4.5 million.

Together with the strong operating

cash flow ($2.0 million in FY26 vs

$2.2 million in FY25) this capital

provides the resources to drive

growth with investment in sales,

marketing, customer support and

product development, and gives

us the flexibility to manage broader

economic volatility.

This marks an important shift for

the company. Over the past two

years, our New Zealand business

has funded the development of

the Global Payroll Platform and

the Australian pilot from internally

generated cash. The capital raising

completed during the year now

allows us to accelerate that rollout

from a stronger balance sheet,

while reducing reliance on bank

80%

Revenue from processing fees

of recurring revenue

up from 63% in FY23

+ 13% YOY

FY23

63%

$4.2m

$2.5m

$4.2m

FY24

65%

$5.2m

$2.8m

FY25

73%

$6.3m

$2.3m

FY26

80%

$7. 2 m

$1.8m

Interest

Processing Fees

Mar 23

$6.7M

$8.0M

$8.5M

$9.0M

Mar 24Mar 25Mar 26

$0 M

$2.0 M

$4.0 M

$6.0 M

$10.0 M

NZD ($M)

$8.0 M

Interest

Processing Fees

Mar 23

$6.7M

$8.0M

$8.5M

$9.0M

Mar 24Mar 25Mar 26

$0 M

$2.0 M

$4.0 M

$6.0 M

$10.0 M

NZD ($M)

$8.0 M

5

LEADERSHIP MESSAGES


Belinda and Stuart Griffin, Griffintine Dairy, Westbury, Gippsland, Victoria, Australia

funding as we scale in Australia.

With a stronger balance sheet,

we are now better placed to

move from proving the Australian

opportunity to delivering on its

promise.

Outlook

In the new financial year, the focus

is on disciplined execution; building

momentum, learning quickly, and

investing carefully as we scale.

PaySauce is targeting a large and

underserved micro-business market

facing genuine payroll complexity,

and during FY26 the company

demonstrated that our platform

can solve those problems in a live

operating environment. The task

now is to convert our strategic

progress into the recruitment of

new customers.

New Zealand remains the

foundation of our group, driven

by a loyal customer base, strong

product-market fit, and a reputation

for delivering accessible payroll

solutions to micro-businesses.

As we pivot back to customer

acquisition and growth, our strategy

includes unifying our New Zealand

users onto our Global Payroll

Platform. During this transition,

we anticipate that some legacy

customers may no longer align

with our target profile. To achieve

our long-term strategic goals, we

will responsibly support these

customers in transitioning to

alternative providers.

At the same time, we remain realistic

about the environment. Lower

wholesale interest rates are likely

to continue weighing on interest

income. Meanwhile, Australian

revenue will build through the year

rather than arrive all at once and

some of our initial marketing and

setup spend will be lower efficiency

as we learn the new market. But the

building blocks are in place: a stable,

cash-generative New Zealand

business and a strengthened

balance sheet to fund disciplined

growth.

Management and the Board’s focus

will remain on disciplined execution,

careful allocation of capital, and

maintaining the balance between

growth and profitability.

Australia is the first step in what we

believe is a broader international

opportunity and we expect to

continue to re-invest near term

profits to drive the long-term

success of the business. We are

confident in the company’s strategy

and encouraged by the progress

made over the past year.

FY26 was a transition year. FY27 is

the year in which we begin to test

the scale of the opportunity we have

worked so hard to create.

We thank our shareholders for their

continued support, our customers

and partners for the trust they place

in PaySauce, and our team for their

commitment and hard work.

Yours sincerely,

Shelley Ruha

Independent Director, Chair

6

LEADERSHIP MESSAGES

At the start of this financial year our priorities were clear: continue to grow and
strengthen the New Zealand business, complete the key milestones required to bring

our next generation Global Payroll Platform into live use in Australia, and prepare the

company for its next stage of growth.

I am proud of the progress we have made across each of those fronts.

We built, tested and launched the platform in Australia, and we are now focused on

turning that readiness into customer acquisition. Australia’s 694,000 micro businesses

now have access to a payroll platform that is unmatched in the market, delivering an

intuitive easy-to-use mobile interface that also offers the peace of mind that comes with

compliance. Importantly, the product has already proven it can handle real Australian

payroll complexity in live conditions.

We understand this

problem. Now we’re

solving it at scale

Asantha Wijeyeratne

CEO, Co-Founder

7

LEADERSHIP MESSAGES

Despite our largest growth investment to date, we have remained profitable, and we have
now built the technology stack and the sales and marketing infrastructure to pursue this

opportunity. These outcomes have required a huge effort from across the business. I

want to thank our team for the discipline, focus and energy they have brought to the year,

and our customers, for the trust they continue to place in us.

Australia is live

I am extremely pleased with the

calibre of capability we have

added around our most important

opportunity. Chris Ridd, former Xero

Managing Director Australia, and

Mel Shortland-Power, former Xero

Head of Bookkeeping and Global

Head of Partner Community, have

joined me to lead our Australian

growth efforts. Together, they bring

valuable Trans-Tasman scaling

experience. More broadly, we have

invested in the people, systems and

local capability needed to support

a disciplined launch into a much

larger market. Meanwhile, I have

relocated to Melbourne to embed

the PaySauce culture into our new

team from the outset.

The pilot of our Australian payroll

product, launched in September

2025, validated the platform in a

live environment. Early customer

feedback informed rapid

improvements, including critical

integration needs as we matured

both the product and our go-to-

market approach.

In February we began onboarding

our first commercial customers

confident that our product could

handle real payroll complexity and

deliver peace of mind compliance.

We have now shifted our focus to

early scaling of the opportunity.

Payroll in Australia is demanding

for micro-business owners. They

are expected to manage awards,

penalty rates, tax, superannuation,

time sheets, payments and

compliance reporting across

multiple systems. That is difficult,

time-consuming and error-prone. In

many cases, the owner is handling

these obligations themselves,

without payroll expertise and

without the support of integrated

software built for their needs.

Our product solves those

problems. PaySauce brings payroll,

compliance and payments into

a single, integrated experience

designed to reduce administrative

effort and improve accuracy for

small employers.

Our initial focus on the dairy sector

has been deliberate. It is a sector we

understand well, one that contains

genuine payroll complexity, and one

that allows us to prove the value

of the platform in a highly practical

setting. With the flexibility the Global

Payroll Platform offers, we’ve also

configured the Retail and Hospitality

awards and have successfully

onboarded customers in these

sectors too. Over time, we expect

the platform to support broader

industry use cases as we extend

award coverage and continue

refining the product.

We also expect regulatory changes

to act as a catalyst for growth. New

rules coming into effect on 1 July

2026 require Australian businesses

to make superannuation payments

at the same time as they run their

pays. This represents the immediate

opportunity as it will require

businesses to reassess existing

legacy solutions that do not deliver

that functionality.


Emma Strong, Dairy Famer, Jamberoo, Australia

8

LEADERSHIP MESSAGES

 Shelley Steele, Ralphy and Stelphy Landz, Tatuanui, Waikato, New Zealand
We remain excited about the size

of the opportunity, but we are

equally aware of the work required.

Our focus is on delivering for

customers, easy onboarding, and a

disciplined and focused expansion

on core customer segments.

New Zealand delivers

steady growth

Our New Zealand business has

turned in another year of steady

delivery, providing the foundation

that has funded our move into

Australia. Customer numbers

increased to approximately 8,600

by year end, and processing fee

revenue grew 13% to around $7.2

million, despite the challenging

economic environment. That is

a pleasing outcome, particularly

given the level of management and

operational focus that was required

to prepare for and execute the

Australian launch.

As Shelley mentioned, the rate

of growth slowed as we made a

conscious decision to split some

of our customer acquisition

resources between maintaining

momentum in New Zealand and

preparing for entry into Australia.

As expected, that trade-off affected

near-term growth.

At the same time, we have

discontinued the entry-level Simple

Plan during the year, recognising

that most micro-businesses want

the integrated payments and

full functionality available in our

Standard and Premium plans. We

are pleased with the customer

response to this transition.

Processing fee revenue continued

to grow, our customer base

continued to expand, and the

business remained profitable. The

quality of the revenue mix also

continued to improve, with more

of the business being driven by

processing activity and less by

interest income on the float.

Interest income declined during

the year as wholesale rates eased.

That placed downward pressure on

some headline metrics, including

ARPU and total recurring revenue

growth, even though the core

product performance remained

strong. This is an important

distinction.

The business we are building

is ultimately about customer

growth, payroll activity, retention

and product value. Looking

ahead, we are gearing up for a

staged transition of New Zealand

customers to the new platform so

they can benefit from the improved

experience over time, noting that

some customers may choose

alternative solutions if their needs

fall outside our target segment.

Product, service and

operating quality

We continued to strengthen the

quality of the business during the

year.

One of the most encouraging

features of PaySauce over the past

few years has been that growth

has not come at the expense of

operating discipline. We have

continued to improve the customer

experience through better

onboarding, more self-service

support, clearer training pathways,

and internal tooling that helps

our teams serve customers more

efficiently.

These changes improve both

the customer experience and

the economics of the business.

They help customers get value

faster, reduce friction in the payroll

process, and support our ability

to scale while maintaining service

quality.

9

LEADERSHIP MESSAGES


Not just on the shorts: Wellington Rugby runs their payroll on PaySauce

We are also embedding AI into

our own operations to lift internal

efficiency and improve the

customer experience. Payroll

itself remains a mission-critical,

compliance-bound activity that

requires accreditation, payments

licences, and accountability. None

of which generic AI can deliver. We

will use AI where it strengthens our

service, while continuing to invest in

the trust infrastructure that defines

our category. An example over

time will be allowing customers

to use their external AI assistants

to access their payroll data, with

appropriate secure integration

pathways and permissions.

Credit is due to the technology

team for these achievements,

especially when they are

considered alongside the demands

they faced preparing for the

Australian launch.

Looking ahead

Three priorities will shape FY27.

First, executing on the Australian

opportunity, which means

converting our platform readiness

into valuable learnings and

initial customer growth. Second,

sustaining the New Zealand

business that funds everything

we do. Third, continuing to lift the

operating quality of the company

so that we scale with discipline to

create long-term shareholder value.

We will measure progress through

clear, repeatable indicators

of commercial momentum:

growth in referrals and partner-

led introductions (including

bookkeepers and accountants);

a consistent rate of onboarding

and positive customer and

partner feedback. From a financial

perspective, our focus will remain

on the long-term value drivers:

sustainable and profitable

customer growth, strong customer

retention and revenue growth that

outpaces rates of investment in

future years.

We enter the new year with a

proven domestic base, a live

product in Australia, and a team

that has shown it can execute.

No doubt there will be some

challenges ahead, as there always

are when opening up new markets,

but we do have a strong foundation

from which to take this exciting

next step.

FY26 has moved PaySauce from

product company to growth

company. The product is built,

the market is proven, the team

is in place. The work ahead is to

execute.

With my warm regards,

Asantha Wijeyeratne

CEO and Co-founder

10

LEADERSHIP MESSAGES

Leadership
team

Our Board of Directors

provides the governance and

strategic leadership required

to set goals to achieve our

global aspirations. Under

Asantha as CEO, the leadership

team has the talents, mindsets

and skills to achieve those

goals with the first execution

underway in bringing our

Global Payroll Platform across

t h e Ta s m a n .

Shelley Ruha

Independent Director and Chair

Shelley joined the PaySauce board in

February 2022. Shelley is an experienced

director and former senior banking executive

with extensive governance experience

across New Zealand and Australian listed

companies. She is the Independent Chair of

Allied Farmers and PaySauce, and a director

of Heartland Bank and 9 Spokes. Previous

directorships include Smartpay, Partners Life,

Hobson Wealth, The Icehouse and Paymark.

Shelley previously spent nearly 30 years in

banking, including as Chief Customer Officer

for BNZ Partners, where she led large-scale

business banking operations. Prior to that

she led Enterprise Services, which included

Technology and Product for the bank. She

brings deep expertise in strategy, financial

services, technology, and risk management,

and currently chairs or serves on several

boards and audit and risk committees.

Asantha Wijeyeratne

Executive Director, CEO and Co-

Founder

Asantha has over 25 years’ experience

focused exclusively on helping small

businesses with payroll. His background

in accounting, combined with a people-

first approach, has seen him build several

businesses into market leadership positions.

Most notably, he created and grew

SmartPayroll (now Smartly) and SmartBooks

to service close to 10,000 SMEs in New

Zealand before leaving in December 2013.

His focus is the micro-business sector. He

gets a lot out of making tech work to help

business owners support themselves, their

families and their communities. He was

awarded a Queen’s Service Medal (QSM) in

2013 and was a finalist in Ernst & Young’s 2021

Entrepreneur of the Year.

Gavin Thompson

Non-Independent Director

Gavin is a founder and a director of Catalyst

IT, New Zealand’s largest open-source

IT service provider. His background is in

software development and delivery, and he

has over 30 years’ experience in software

systems in the manufacturing, engineering,

financial, and government sectors. Gavin is

also a director on the board of Catalyst Cloud,

a company which grew from an infrastructure

platform for the Catalyst business, into a

provider of cloud services for Aotearoa.

Gavin is passionate about open source and

open standards software and systems

which allow a collaborative and effective

approach to delivering secure, resilient and

innovative solutions.

Mark Samlal

Independent Director

Mark has over 25 years’ experience in growth

leadership roles across Asia-Pacific. He co-

founded PayAsia in 2006 and was appointed

Executive Chairman and Managing Director in

2015. In 2017, he joined the Board of PayGroup

as Managing Director, listing the business

on the ASX in May 2018 and completing five

acquisitions before PayGroup was acquired

by Deel in November 2022.

Mark remains CEO and Founder of PayGroup.

He was previously a Director and General

Manager of PayConnect Solutions, which

was acquired by ADP. Throughout his career,

Mark has been an invested shareholder in the

businesses he has led.

Jim Sybertsma

Independent Non-Executive Director,

Audit and Risk Committee Chair

Jim has over 25 years of experience in

financial leadership positions including CFO

roles for DB Group, NZ Dairy Foods, Fliway

Group, and Hawkesby Management. During

this time, Jim has been involved in audit,

compliance and corporate finance activities

across a range of industries and sizes from

start-up to scale-up.

Jim is currently a Director for Provident

Insurance Corporation Limited, Auto

Drive Holdings and First Glass. He is also

CFO of Hawkesby Management, a family

office investment role, managing multiple

investments in early stage tech companies

and listed equity portfolios.

Jaime Monaghan

Chief Financial Officer

Jaime joined PaySauce in 2020. With an

extensive commercial background, Jaime

brings incisive leadership to our financial

and strategic planning. Jaime’s expertise in

bringing business and finance together was

honed in her previous roles at Trade Me and

Kiwibank. A Scottish Accountant, Jaime

is dedicated to ensuring the best possible

stewardship of shareholders’ funds in the

short, medium and long term.

PaySauce is responsible for managing a high

volume of funds on behalf of customers, with

billions of dollars being transacted every year

through PaySauce systems. Jaime’s financial

acumen and excellent management is key to

overseeing this.

Jessica McLean

Chief Operating Officer

Jess started her career on the front line in

payroll consulting and customer service,

helping businesses work through the

complexity of employing people. She then

moved into people and culture leadership,

so she knows just how challenging payroll

and employment compliance can be. That

combination of service delivery and hands-on

experience gives her a deep empathy for

what small employers are up against.

At PaySauce, she leads our growth, customer

experience, and operations teams, driven by

a passion for making payroll more accessible

for businesses that don’t have the luxury of

experts in their team.

Jacques Labuschagne

Chief Technology Officer

Jacques has spent his career delivering

technology solutions, from bespoke

builds through to core product and

service platforms. He started in software

development, moved into team and project

management, and most recently spent

several years as the CEO of a technology

services business in the UK, then as COO of

the NZ-based business in the same group

before joining the PaySauce team in 2023.

He brings strong technical judgement

alongside disciplined planning and execution,

and is focused on building the technology

team and platform that will support

PaySauce’s growth across both markets.

Chris Ridd

Executive Director, PaySauce Pty Ltd

Chris is a hands-on technology executive with

over 30 years in the industry, grounded in

sales, marketing and product management.

He has spent the last 15 years as CEO

of software companies including Xero,

myprosperity and EventsAir, and held

non-executive director roles with BoardPro,

MedAdvisor and Compass Education.

He has built a strong profile in the Australian

tech industry through both high-growth

leadership and advisory work with founders

across SaaS, fintech, health and education.

His experience covers operational leadership,

governance, capital raising and M&A. In

addition to leading PaySauce’s expansion

in Australia, he holds board positions with

VicRoads, Vocus and InvestorHub.

11


Michael Gray, Buzz Cafe, Lower Hutt, New Zealand

The strategic context shapes

everything that follows. Our

product investment this year was

directed at the new platform and

our Australian market entry, rather

than at the existing platforms which

serve customers in New Zealand

and the Pacific. The new platform

comes to the New Zealand market

later in 2026, and the migration

and modernisation programme

that follows, will be the largest

change PaySauce has taken on.

Our New Zealand business was

focused on performing within

that constraint: growing the

business, retaining customers, and

deepening relationships without

leaning on product improvements,

while building the foundations the

platform transition will need.

New Zealand

This year was one of sharpened focus across both sides

of our customer relationship: how we find and bring in the

right customers, and how we serve them so well that they

stay, grow, and recommend us.

The two sides of the customer

relationship feed each other.

Word of mouth and referrals are a

significant driver of new customer

acquisition, and that pipeline is

fed by how customers experience

PaySauce day to day. With product

investment focused elsewhere,

the quality of the customer

relationship is what carries the

business forward.

This year also marked our tenth

anniversary: a decade of building,

learning, and serving small

employers, and growing from a

start-up idea to a listed company

serving thousands of employers

across New Zealand, Australia, and

the Pacific.

12


We were deliberate about where

we invested and where we did

not. We pushed hard in the white

space available to us: first-time

employers, small employers in

agriculture, business owners who

value service and expertise over

feature volume. We made changes

to our pricing and channel mix that

prioritised revenue quality as well

as customer count. The result is a

New Zealand business with better

unit economics, cleaner data,

stronger systems, and a clearer

view of where the next growth

comes from.

The customer as the

hero

Underneath every initiative this

year is one decision: to be hyper-

focused on our ideal customer,

the small employer doing payroll

themselves. Our product was built

for them, our content speaks to

them, our brand reflects them, and

our growth programme is designed

to find more of them. That clarity

shapes our end to end journey.

Brand awareness in the regions and

channels where small employers

actually pay attention, content that

helps them understand payroll and

employment, improved search

visibility, active engagement at the

moment of interest, and sign-up

onto the right plan with the right

expectations. Then the experience

after signup is what creates a loyal

customer, and that loyal customer

becomes a source of growth.

From customer count to

revenue quality

Customer count matters, but the

value, retention, and economics

of those customers determine the

underlying health of the business. A

customer on our lowest-priced plan

generates significantly less revenue

than a customer on our core plans,

and usually costs more to serve.

This year we made a deliberate

move to focus on revenue quality

alongside customer count.

One strategic objective was to drive

customers toward our Standard

and Premium plans. The revenue

benefits go well beyond plan fees:

customers on these plans use

our payments processing and

PAYE intermediary services, which

generate processing fee revenue

and interest income on the funds

we hold on their behalf.

The clearest expression of the shift

was the decision to stop selling

Simple, our lowest plan tier, directly

to employers. New direct sign-ups

now go to Standard or Premium.

Simple remains available through

the partner channel only.

The thinking is straightforward. We

do not need to compete on lowest

price. An employer feeling the real

pain of payroll is more than willing

to pay for a product that actually

solves those problems, and we see

better outcomes when customers

take up the full suite: the pay run

completes properly, employees

are paid on time, Inland Revenue

obligations are met, and customers

stay longer because the product is

doing the job they actually wanted

from it.

We also implemented a modest

price increase across the

customer base in April 2025, and

brought charity customers onto a

consistent discount structure by

March 2026.


10 years of PaySauce!

91%

Customer survey

feel confident using PaySauce day to day

“Saves soooooo much

time and hassle. Worth

EVERY cent!”

Customer growth

13

NEW ZEALAND

Brand, content and a
modern website

We continued to invest in regional

brand presence, recognising that

small business owners and rural

employers are often reached

by channels other than digital.

We attended National, Southern

and Northern Districts Fieldays,

extended our radio plan into

provincial areas, and started

TVNZ+ advertising in September

2025, alongside our continuing

rugby sponsorships in Wellington

and Taranaki.

Our content strategy is positioning

for first-time and small employers

searching for help with the things

that come before they may even

need payroll software: employment

obligations, general good practice,

the everyday questions that

come with being a boss. By the

time those people are ready to

choose payroll software, we want

PaySauce to be a name they

already trust.

In July 2025 we replaced the

PaySauce website. The previous

site was a bespoke build that

only our development team could

change. The new site is built

in Webflow, and our customer

acquisition team can update it

directly, publishing content, testing

landing pages and responding to

market changes in hours rather

than weeks, without drawing on

development capacity.

The SEO and SEM programme has

run since the launch, and we end

the year with materially improved

website hygiene and a programme

that compounds into the next year.

We also started the shift from a

passive website experience to an

actively engaged one. Chat flows

and interactive product demos

now let us engage visitors at the

moment of interest, with 24/7

coverage and warm handoffs to

the growth team for high-intent

prospects.

Partnerships and

migration opportunities

We made a deliberate shift in our

partner approach this year, away

from a large number of low-volume

practices and toward deeper

relationships with a smaller number

of influential partners. We are

more aligned to partners who refer

customers to us than to those who

run payroll on their clients’ behalf.

The retirement of legacy payroll

products in the New Zealand

market is creating a once-in-a-

decade opportunity, with tens of

thousands of customers across

the market needing a new home.

We built a proactive, project-

managed migration programme

for accounting practices and

bookkeeping bureaus moving large

client books.

Market timing softened during the

year as several legacy providers

extended their support timelines,

so we adjusted accordingly,

focusing active engagement

on partners ready to move now

while maintaining infrastructure

to capture migrations as broader

timing shifts.

“Absolutely makes payroll super easy! the team

is fantastic to deal with, and super easy website

and app”

3,378

Product demos viewed

120hrs

Demo viewing time

6,686

Blog views

in 9 months since the launch of the redeveloped PaySauce website

162

Web pages published

14

NEW ZEALAND

This year was the most significant
transformation of our customer

experience operations. We

changed the team operating

model, modernised legacy

processes and systems, deepened

our investment in proactive

support, and launched market-

leading capability that none of our

direct New Zealand competitors

currently offer.

Customer experience at PaySauce

is not a cost-to-serve function

alone. It is one of our key value

propositions. Customers who feel

supported tell other employers.

A new operating model

We split our customer experience

function into three specialised

teams.

Support handles day-to-day

reactive work and is measured

on service levels and sentiment:

response times, resolution times,

SLA performance, and customer

satisfaction at point of contact.

Onboarding is a dedicated team

focused on getting new customers

from sign-up to first successful

pay run. We rebuilt the onboarding

experience for direct sign-ups this

year, with improved processes and

technology that streamline data

transformation and import. A first

pay run that goes well is one of the

strongest predictors of long-term

retention and one of the most

common moments customers

choose to recommend us.

Customer success is the most

strategically important addition.

Where support waits for customers

to come to us, customer success

works proactively to make sure

customers are getting value from

PaySauce, on the right plan, and

using the features that benefit

them. It is measured on retention,

plan fit, feature adoption, advocacy,

and the strength of relationships

that drive referrals. In effect, an

extension of the customer growth

function.

Proactive support &

better sentiment data

We have done more proactive,

outbound customer contact this

year than at any previous point

in PaySauce’s history. Every

conversation we have proactively

is a conversation a customer

does not have to start themselves

when something has already gone

wrong. Over time this reduces

inbound volume, lowers cost

to serve, and meaningfully lifts

customer confidence.

Our NPS result currently sits at

44, down from previous years. We

changed our surveying mechanism

this year: NPS is now delivered

in-product, runs continuously, and

is combined with other sentiment

signals. The change has tripled the

number of responses we receive,

bringing our methodology into

line with how NPS is intended to

be measured. The bigger win is

operational, we have an always-


Tania, Customer Experience Team, New Zealand

“It’s so easy to use and

the staff are amazing

when I need help.

Even when I ask silly

questions.”

Customer experience

15

NEW ZEALAND

80%
24/7Dec 2025

Penny AI agent

CoverageLaunched

of chat queries resolved on the spot

on view of customer sentiment

that lets us act on issues as they

emerge rather than waiting for the

next survey cycle.

Intercom and Penny

We integrated Intercom across

our products this year. In-product

support means customers can get

help without leaving PaySauce, and

our team works in a single platform

that brings together conversations,

customer context, product

usage, and self-service content.

What makes Intercom genuinely

transformative is everything

alongside the support inbox:

tooltips, product tours, banners,

in-product checklists, multi-step

campaigns. All of this is targeted to

the right customer segments at the

right moment, all built and released

by our team without developer

input.

Work that previously required a

development ticket and a release

window now happens in minutes.

The benefit beyond improved

experience is scalability. As we

grow, and as we move through

the platform migration ahead,

the ability to handle more

conversations, and guide more

customers with the same team

is essential. Intercom is the

foundation that makes that possible

without losing the personal care

we’re known for.

In December 2025 we launched

Penny, our AI customer support

agent. Penny is configured

conservatively by design, where the

system detects error, frustration,

or anything that suggests a

human is the better answer, it

escalates to our team. Even with

that conservative posture, Penny

is currently resolving nearly 80%

of queries that start in our chat,

providing genuine 24/7 coverage.

Accountant users have been fast

adopters. As we move into platform

migration work, Penny becomes

critical infrastructure: it absorbs

volume during a period when

human capacity will be under the

most pressure, and supports both

legacy and new product queries

side by side.

“What I love most is your helpline! This has been

our first year contract milking and every time I

call the person I talk to is incredibly helpful and

patient. Once you know your way around, using

PaySauce for payroll is very user friendly and easy

to navigate.”

Support as an

acquisition driver

For many businesses, customer

support is treated solely as a cost

line. For PaySauce, it is a deliberate

strategic choice and a core

part of how we win in a market

where small employers compare

providers on more than just price.

Inbound and outbound phone,

email, live chat with a real person,

an AI agent, and a comprehensive

help centre, all backed by in-

product guidance. We outperform

most of our direct New Zealand

competitors on the channels

available, and meaningfully so on

the ones that matter most in the

moment of need.

That investment is what prepares

us for a more complex year ahead.

The platform migration programme

will be the largest piece of

operational change PaySauce has

taken on. The structural choices we

have made this year — specialised

teams, a modern platform, a

proactive posture, an AI agent, in-

product guidance — are exactly the

foundation that work needs.

16

NEW ZEALAND


Craig Turner - Espresso Repairs Specialists, Petone, New Zealand

Where this leaves us

We finish the year with a New Zealand business that is structurally different

to the one we started with. The customers we now bring in are higher value,

better matched to the product, and more likely to stay. The experience we

build for them turns into advocacy, and that advocacy into the next round of

acquisition.

This is what it looks like to perform within the constraints of a mature current

product while the future product is being built. We pushed hard where

we are most competitive and stepped back from where we were not. We

invested in revenue quality, not just customer count. We built the systems,

structures, and disciplines that the next phase of growth will need.

17

NEW ZEALAND

Australia
 Chris and Asantha on the road to the

Women in Dairy Ladies Lunch 2025

Australia represents the most significant growth

opportunity in PaySauce’s history. With a small employer

market around seven times the size of New Zealand, a

shared language and business culture, and a regulatory

change creating real urgency for employers to act, the

conditions for market entry are well established. With the

product already proven, FY27 is the year we start to scale

our market entry.

On 20 April 2026, we formally launched our Australian operations. That

followed a six-month soft launch period that began in September 2025,

during which we validated the product in a live operating environment,

gathered direct customer feedback, and refined both the platform and our

go-to-market approach. By 1 May 2026 we had 40 customers signed up.

Our focus through this initial phase is on foundation customers: the right

customers, well served, who give us the depth of feedback and the proof

points to scale from.

40

signed up by 1 May 2026

Customers

18

Why dairy first
We chose the dairy sector

deliberately. We know it well

already and it was not about

market size. It was about proving

the product works where payroll is

genuinely hard.

Australian dairy farms operate

under the Pastoral Award, one

of the most complex Fair Work

instruments in the country.

Overtime rules for waged staff

are complex and employers on

annualised salaries are still

required to reconcile against the

full award every twelve months.

Most micro-business owners

in this sector are working it out

themselves, without a payroll team

and without software that handles

the rules for them.

We have spent years working

with New Zealand farmers and

understand the rhythms, the

seasonal pressures, and what

it takes to build a product they

actually trust. The detail may be

different, but the problems for the

dairy farmer are the same: complex

pay rules, small teams, time-poor

owners, and an expectation that

the software should just get it right.

We have already moved onto new

awards, leveraging the flexibility

of the Global Payroll Platform. The

platform is a rules engine, not a

product with legislation baked in:

each new award is a configuration

rather than a rebuild. The General

Retail Industry Award and the

Hospitality Industry Awards have

already been launched, with more

to follow.

Solve the same problem

in a new market

The Australian payroll market for

small employers is different to

New Zealand.

In New Zealand, employers expect

a single payroll solution that

calculates pay, files with Inland

Revenue, integrates with their

accounting software and transfers

the funds to pay their staff. That

single-platform approach is

standard here. It is not standard in

Australia.

Most Australian micro-employers

still patch together multiple

disconnected tools: one for

timesheets, a spreadsheet for

calculations, accounting software

for records, and online banking

for manual payments. The idea

of a single system that takes you

from timesheet to compliant,

paid pay run in one flow is still

new. There is no product on the

Australian market built for micro-

businesses that does award

interpretation, payment processing,

superannuation filing, and reporting

as a single integrated experience.

This gap is the opportunity. We

have already solved the same

problem in New Zealand, and

we are now bringing that

experience into a market where the

need is larger and the alternatives

are worse.

Award compliance

built in

Fair Work Awards are the

regulatory framework that sits

underneath. They set minimum pay

rates, penalty structures, overtime

rules, and allowance entitlements

by industry and classification. Every

Australian employer must comply

with their applicable award, and the

consequences for getting it wrong

are real.

Most payroll software available

to small employers either ignores

award interpretation or handles

it poorly. PaySauce interprets the

award rules automatically and

applies them to each pay run.

The employer runs their pay; the

compliance is built in.

Payday Super

Starting 1 July 2026, Australian

employers will be required to

pay superannuation at the same

time as each pay run, rather than

quarterly as they do today. This is a

major shift in how payroll works for

every employer in the country.

The change is comparable to the

introduction of payday filing in New

Zealand. When Inland Revenue

moved to per-pay-run filing, it

created a clear, time-bound reason

for employers to move to modern

payroll software, and PaySauce

captured a meaningful wave of new

customers as a result.

Payday Super is that same moment

for Australia. Quarterly super has

allowed employers to batch the

work and manage it outside of

payroll. Paying super on every

payday means the payroll system

has to handle it, automatically, as

part of the pay run. Employers

using manual processes,

disconnected systems, or providers

that do not support Payday Super

The market opportunity

 Linda and Ben Jaworski, Cakes on

Carthew, Townsville, Australia

694,000

~7x the NZ market

Australian micro-businesses

19

AUSTRALIA

will have to move. The compliance
requirement is creating a natural

window of demand that favours

products built to handle it from day

one. PaySauce is one of only a few.

Building on ten years

of learning

PaySauce has spent a decade

building and refining a payroll

product for micro-businesses

in New Zealand and across 14

jurisdictions in the Asia-Pacific

region. The patterns we have

learned over that time are directly

transferable to Australia.

We know what first-time employers

struggle with. We know where

people get stuck in a pay run. We

know that the quality of onboarding

determines whether a customer

stays or leaves within the first

month. We know that support

matters more than features when

the employer is mid-pay run at ten

o’clock at night. And we know that

solving a real compliance problem

for an underserved sector is the

fastest way to build a customer

base that trusts the product and

tells others.

How we will scale

growth

Our go-to-market approach has

three channels:

The partner channel is the primary

growth engine. Bookkeepers

and accountants are the most

trusted advisors to Australian

small business owners. And they

are most often the people who

recommend and set up payroll

software. We are building a

network of partners who refer their

clients to PaySauce, following the

model that worked for Xero when it

scaled in Australia.

The direct channel reaches

small employers through search,

content, and digital advertising.

An employer searching for help

with award compliance or looking

for a payroll provider ahead of the

Payday Super deadline, should find

PaySauce.

The strategic channel targets

franchise groups and industry

associations. There are

approximately 85,000 franchise

outlets in Australia with fewer than

20 employees. These businesses

have high compliance requirements

and frequent ownership turnover.

These agreements take longer to


Mel Shortland-Power, Bayley Budin & Meena Berry at Women in Dairy, 2026

negotiate but a single agreement

with a head office can bring

dozens or hundreds of end-users

onto the platform.

Our team

We have strong and experienced

leaders in our business. Chris Ridd,

former Managing Director of Xero

Australia, leads the growth effort

alongside Mel Shortland-Power,

former Head of Bookkeeping and

Global Head of Partner Community

at Xero. Both bring deep networks

and direct experience of what

it takes to scale a SaaS payroll

business in the Australian market.

Around them, we have attracted

people who were part of building

the Xero ecosystem 10 to 15

years ago.

We are deliberately disciplined

about how we scale the team. The

Australian team is built primarily

on contractors at this stage, with a

clear plan to move to permanent

roles as we prove traction. This is a

foundation build, not a sprint, and

the cost base is sized to match.

20

AUSTRALIA


Griffintine Dairy, Westbury, Gippsland, Victoria, Australia

Managing risk

Three risks sit at the top of our

register for the Australian operation.

Partner channel concentration is

the first. Roughly 60 percent of our

growth plan relies on recruiting

and activating partners. We track

active partner counts weekly and

maintain a pipeline to support

continued recruitment through

the year.

Strategic channel timing is the

second. Franchise and industry

body agreements take time to

negotiate, and delays are common.

We maintain pipeline coverage of

four times our target to absorb

slippage without falling behind.

Early-adopter bias is the third. The

customers who sign up first are

not necessarily representative

of the broader market. To guard

against over-optimism, the board

has agreed not to revise targets

upward before the scheduled mid-

year re-forecast on

15 October 2026.

What comes next

FY27 is a foundation year. Revenue

from the Australian operation is

forecast to build through the year,

compounding from Q3 (October

to December 2026) as partners

become productive and the Payday

Super deadline drives employer

decisions. The largest volume of

new customer activity is expected

in Q4 (January to March 2027).

The work ahead is straightforward

to describe and hard to do: recruit

and activate partners, convert

the interest we are seeing into

paying customers, continue

extending award coverage, and

prove that the unit economics of

the Australian business support

long-term investment. We have

the product, the team, and the

market conditions. The task now is

execution.

21

AUSTRALIA

PaySauce SaaS
Performance

The business results and SaaS metrics reported in the following sections

provide an overview of the performance of the business in a format that

we believe is useful for readers to assess the performance of PaySauce as

a SaaS business and should be read alongside the consolidated financial

statements and the related notes in this report.

Non-Generally Accepted Accounting Principles (Non-GAAP) measures

have been included and should not be viewed in isolation, nor considered

as substitutes for measures reported in accordance with New Zealand

Equivalents to International Financial Reporting Standards (NZ IFRS).


March 2026March 2025

$000s$000s

Processing Fees7,1626,322

Interest Income1,8132,329

Recurring Revenue8,9758,651

Cost to Serve(1,968)(1,938)

Gross Margin7,0076,713

Gross Margin %78%78%

Other Interest Income319

Other Revenue242336

Total Other Revenue273345

Customer Acquisition(1,342) (1,025)

Research & Development(1,204) (1,168)

General & Administration(3,498)(3,461)

Interest Expense(18) (52)

Earnings Before Tax, Depreciation and

Amortisation

1,2181,352

Earnings Before Tax, Depreciation and

Amortisation Margin %

14%16%

Depreciation & Amortisation(1,026)(817)

Asset Impairment(21)(75)

Net Profit before Tax171460

Income Tax Benefit119221

Net Profit after Tax290681

Earnings Before Tax, Depreciation and Amortisation (EBTDA) is calculated by adding back depreciation, amortisation and

income tax expense to the amounts reported in the NZ IFRS-based financial statements. PaySauce believes that this measure

provides useful insights to measure the performance of PaySauce as a SaaS business.

EBTDA Margin % is EBTDA as a percentage of recurring revenue and is calculated by dividing EBTDA by recurring revenue.

22

PERFORMANCE

Recurring Revenue
How and why do we monitor recurring revenue?

PaySauce monitors the revenue received from customers as a growth metric. Looking at it from a customer

journey angle, this is the Average Revenue per User (ARPU) and is derived by dividing the total recurring

revenue by the number of customers in a period. PaySauce measures this metric on a monthly basis - the

higher the ARPU, the more value received from each customer.

Definitions

Recurring revenue is revenue that is expected to repeat into the future. Recurring revenue for PaySauce

consists of:

• Processing Fees - the monthly or annual subscription customers pay for PaySauce payroll products.

• Interest Income - interest earned from funds held on behalf of PaySauce customers. As interest earned on

these funds grows directly in relation to the number of customers, this is considered an additional recurring

revenue stream.

Annualised recurring revenue (ARR) multiplies the recurring revenue generated in the last month of the period

by 12 to annualise the current recurring revenue.

Recurring revenue grew 4% year on year to $9.0m. This was primarily driven by the increase in

processing fee revenue as interest revenue declined 22% in FY26.

Processing fee revenue increased to $7.2m, up 13%, or $0.84m year on year. The increase in

volume of customers accounted for 60% of the increase, while the increase in average revenue

per customer from processing fees accounted for the remainder.

Interest revenue decreased to $1.8m, down 22% or $0.52m year on year, with the declining

interest rate environment experienced during the year more than offsetting the impact of

increasing balance of funds held on behalf of customers over the course of the year.

Annualised recurring revenue

Interest

Processing Fees

Mar 23

$6.7M

$8.0M

$8.5M

$9.0M

Mar 24Mar 25Mar 26

$0 M

$2.0 M

$4.0 M

$6.0 M

$10.0 M

NZD ($M)

$8.0 M

Annualised recurring revenue (ARR) grew 6% year on year to $9m as at 31 March 2026.


March 2026March 2025YOY Change

ARR at end of period ($000s)8,9578,4626%

Recurring revenue for the period

- Total ($000s)

8,9758,6514%

ARPU (monthly) at end of period ($)87861%

FTEs4848flat

Revenue per FTE ($000s)1931873%

23

PERFORMANCE

Cost to Serve
How and why do we monitor cost to serve?

PaySauce monitors the cost of servicing customers as an efficiency metric. The cost to serve per customer

(CTS) divides the total cost of serving our customers by the total number of customers for the period. The

lower the CTS, the more efficient PaySauce is at servicing customers.

Definitions

Cost to serve consists of customer support costs and expenses such as cloud hosting, maintenance of our

software products, and bank fees charged per customer transaction.

Gross margin is the difference between the recurring revenue earned from our customers and the amount it

costs PaySauce to service those customers (cost to serve). Gross margin is often expressed as a percentage

of recurring revenue.

Cost to serve increased to $2.0m (up 2% on last year). PaySauce continued to increase the

efficiency of the customer function with investment into systems and processes, including the

adoption of Intercom, and the launch of its new AI agent, Penny - which now resolves nearly 80%

of chat based queries. This has enabled the same headcount of support staff to support a greater

number of customers. Furthermore, a rebuilt onboarding flow and improved in-product guidance

have streamlined the customer journey, reducing manual effort and reactive support volumes.

The increase in cost to serve was largely inflationary as a result with increases to salaries, and

increases in data hosting fees and bank charges in line with customer growth. The increase

in cost to serve was outpaced by a 4% increase in recurring revenue as customer numbers

grew 5% year on year. This led to a 4% increase of PaySauce’s gross margin to $7.0m or 78% in

percentage terms. The gross margin percentage remained in line with the prior year despite the

22% year on year decline in interest income.

Gross margin %

73%

77%

78%

78%

Mar 23Mar 24Mar 25Mar 26

80%

75%

70%

65%

60%

Gross margin held steady at 78% in FY26, with processing fee growth offsetting declining

interest income.


March 2026March 2025YOY Change

Recurring revenue ($000s)8,9758,6514%

Less cost to serve ($000s)(1,968)(1,938)2%

Gross margin ($000s)7,0076,7134%

Gross margin %78%78%flat

CTS per customer (monthly) at end of period ($)1919flat

24

PERFORMANCE

Customer Acquisition
How and why do we monitor customer acquisition?

PaySauce monitors the cost of acquiring new customers as a growth efficiency metric. The customer

acquisition cost (CAC) divides the total cost of attracting and onboarding new customers by the number of

new customers onboarded in the period. In an established business or market, a lower CAC demonstrates a

more efficient customer acquisition process.

Definitions

Customer acquisition costs relate to attracting and onboarding new customers. These consist of sales and

marketing people costs and expenses such as digital marketing, events and sponsorship. These costs are

expensed as incurred as they do not relate to any specific customer or contract for services

PaySauce added more than 1,400 new customers, growing the customer base to 8,600 as at

31 March 2026. Whilst still growing our customer base overall, the number of new customers

onboarded in the year was down 19% year on year as the team prepared for launch in Australia.

The increase in customer acquisition costs outpaced customer growth, primarily due to the

increased spend relating to the market entry into Australia - the return on which will be seen in

FY27. This led to an increase in CAC per addition of 62% year on year to 944 per customer

in FY26.

Customer growth and acquisition cost

6,875

7,368

8,204

8,600

Mar 23Mar 24Mar 25Mar 26

15%

20%

10%

5%

0%

9k

12k

6k

3k

0k

12%

10%

12%

15%

Customer base grew 5% to 8,600, while acquisition costs rose to 15% of recurring revenue,

reflecting investment in the Australian market entry.


March 2026March 2025YOY Change

CAC per addition94458462%

New customers1,4221,755(19%)

Customer acquisition costs ($000s)1,3421,02531%

Percentage of Recurring Revenue15%12%3pp

25

PERFORMANCE

Research and Development

Research and development (R&D) costs relate to building new products and features as well as enhancing the

current products and infrastructure. These costs predominantly consist of the software development team

salaries, and are either expensed or capitalised according to NZ IFRS requirements. R&D costs are expensed

if they are primarily related to researching new products or maintaining existing products. R&D costs are

capitalised if they relate to developing new features or products for our customers. Development costs are

discussed in aggregate below - to demonstrate the total spend on R&D for the business in the period before

capitalisation under NZ IFRS requirements.

PaySauce increased investment into research and development by 16% year on year - up to

$3.3m for FY26.

This increase was primarily people cost, with new roles across the board in design, product and

testing to support the development and release of the Australian payroll product.

The improvements made to the structure of the team, infrastructure and security over the past

two years continue to deliver results. Not just in the speed of delivery of new products, but also

limiting the increase in maintenance required on the existing products, with expensed research

& development limited to an increase of 3% year on year. This, combined with the new team

members being focused almost entirely on the development of the Australian payroll product,

has led to an increase in the capitalisation rate of 5 percentage points year on year to 66% (a

measure of how much time is spent developing and improving products compared to the time

spent maintaining them).

R&D investment

Expensed

Capitalised

Mar 23

$1.5M

$2.0M

$2.9M

$3.3M

Mar 24Mar 25Mar 26

$0 M

$1.0 M

$2.0 M

$3.0 M

NZD ($M)

$4.0M

Total R&D investment increased 16% to $3.3m, with the capitalisation rate rising to 66% as

the team focused on developing the Australian payroll product.

March 2026March 2025YOY Change

Research & development expensed ($000s)1,2041,1683%

Research & development impairment ($000s)2174(71%)

Research & development capitalised ($000s)2,1191,62930%

Total research and development costs ($000s)3,3442,87116%

Percentage of Recurring Revenue37%33%4pp

Capitalisation rate (salaries)66%61%5pp

26

PERFORMANCE

Customer Lifetime Value
How and why do we monitor customer lifetime value?

The longer a customer remains with PaySauce, the more value they generate. PaySauce monitors how

long a customer is expected to remain a customer, by looking at customer retention. Customers who stop

using PaySauce in any given month are deemed to have churned. Churn is measured as the percentage of

customers that stop using PaySauce products each month as a proportion of the customers at the start of

that month. The lower the churn rate, the higher the derived lifetime of each customer and the more value

generated from them. The customer lifetime value is assessed relative to the customer acquisition cost (CAC)

to determine the return on investment of acquiring new customers.

Definitions

Monthly average churn rate is the 12 month average of the net reduction of customers in a calendar month. It

is expressed as the percentage of the total customers at the start of that month. The net reduction allows for

returning customers who may have paused processing temporarily, for example, due to seasonal fluctuations.

The estimated customer lifetime (in months) is derived using the inverse of monthly average churn rate (being

1 divided by the monthly average churn rate).

Customer lifetime value (CLTV) is a measure of the gross margin each customer brings in over the time they

use PaySauce. CLTV is calculated by multiplying the gross margin per customer by the estimated customer

lifetime.

Total customer lifetime value (LTV) is a measure of the estimated value of the current customer base,

assuming that churn, revenue and cost to serve remain constant. This measure is calculated by multiplying

CLTV by the total number of customers.

LTV : CAC is a measure of the return on investment of acquiring a new PaySauce customer. This measure is

calculated by dividing the CLTV by the CAC per additions.

PaySauce saw total customer LTV grow 3% year on year, totalling $57.2m as at 31 March 2026.

This was driven entirely by the increase in customer numbers (up 5% year on year), which offset

the slight decrease in LTV per customer (down 1% year on year).

The decrease in LTV was driven by the increase in the average monthly churn rate to 1.02% from

0.99% last year (an increase of 3% year on year), despite a stable gross margin and an increase in

ARPU of 1 % year on year.

March 2026March 2025YOY Change

Customers at end of period8,6008,2045%

Average monthly churn rate for the period (%)1.020.993%

Churned customers1,02691912%

LTV per customer at end of period ($)6,6566,747(1%)

Total customer LTV at end of period ($m)$57.2m$55.3m3%

LTV:CAC ratio at end of period7:112 : 1(39%)

27

PERFORMANCE

Customer Lifetime Journey
ARPU / month

$87

CTS / month

flat YOY

$19

Lifetime

8.2 yrs

CLTV

$6,656

CAC

$944

Each customer generates $87 per month in revenue.

After $19 per month in servicing costs, that leaves a gross margin of $68 per customer per month.

Over an average customer lifetime of 8.2 years, each customer is worth $6,656.

-3% YOY-1% YOY+62% YOY+ 1% YOY

$57.2m

Total customer lifetime value

+ 3% YOY

$6,656

Value per customer

7 : 1

LTV : CAC ratioCustomers

8,600

+ 5% YOY

28

PERFORMANCE

Financial Statements
For the year ended 31 March 2026

Directors’ Report 30

Independent Auditor’s Report 31

Consolidated Financial Statements

Consolidated Statement of Comprehensive Income 33

Consolidated Statement of Financial Position 33

Consolidated Statement of Movements in Equity 35

Consolidated Statement of Cash Flows 36

Notes to the Consolidated Financial Statements 36

29

Directors’ Report
The Board of Directors have pleasure in presenting the annual report of PaySauce Limited,

incorporating the consolidated financial statements and the independent auditor’s report, for the

year ended 31 March 2026.

In the opinion of the directors of PaySauce Limited, the consolidated financial statements and

notes on pages 33 to 47:

• comply with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”) and present

fairly the consolidated financial position of the Group as at 31 March 2026 and the results of

their operations and cash flows for the year ended on that date; and

• have been prepared using appropriate accounting policies, which have been consistently

applied and supported by reasonable judgements and estimates.

The directors consider that they have taken adequate steps to safeguard the assets of the Group

and to prevent and detect fraud and other irregularities. Internal control procedures are also

considered to be sufficient to provide reasonable assurance as to the integrity and reliability of

the consolidated financial statements.

For and on behalf of the Board of Directors:

Shelley Ruha

Chair

26 May 2026

Jim Sybertsma

Audit & Risk Committee Chair

26 May 2026

30

FINANCIAL STATEMENTS

To the Shareholders of PaySauce Limited
Report on the Audit of the

Consolidated Financial

Statements

Opinion

We have audited the consolidated financial

statements of PaySauce Limited on pages 33 to

47 which comprise the consolidated statement

of financial position as at 31 March 2026, and the

consolidated statement of comprehensive income,

consolidated statement of movements in equity and

consolidated statement of cash flows for the year

then ended, and notes to the consolidated financial

statements, including material accounting policy

information.

In our opinion, the accompanying financial statements

present fairly, in all material respects, the financial

position of PaySauce Limited as at 31 March 2026

and its financial performance and cash flows for the

year then ended in accordance with New Zealand

Equivalents to International Financial Reporting

Standards (NZ IFRS) issued by the New Zealand

Accounting Standards Board and IFRS Accounting

Standards issued by the International Accounting

Standards Board.

Basis for Opinion

We conducted our audit in accordance with

International Standards on Auditing (New Zealand)

(ISAs (NZ)) issued by the New Zealand Auditing and

Assurance Standards Board. Our responsibilities

under those standards are further described in

the Auditor’s Responsibilities for the Audit of the

Consolidated Financial Statements section of

our report. We are independent of the Group in

accordance with Professional and Ethical Standard

1 International Code of Ethics for Assurance

Practitioners

(including International Independence Standards)

(New Zealand) issued by the New Zealand Auditing

and Assurance Standards Board and the International

Ethics Standards Board for Accountants’ International

Code of Ethics for Professional Accountants (including

International Independence Standards) (IESBA Code),

and we have fulfilled our other ethical responsibilities

in accordance with these requirements and the IESBA

Code. We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a

basis for our opinion.

Other than in our capacity as auditor we have no

relationship with, or interests in, the Company/Group.

Key Audit Matters

Key audit matters are those matters that, in our

professional judgement, were of most significance in

our audit of the Consolidated financial statements of

the current period. These matters were addressed in

the context of our audit of the Consolidated financial

statements as a whole, and in forming our opinion

thereon, and we do not provide a separate opinion on

these matters.

Grant Thornton New Zealand Audit Limited


L4, Grant Thornton House

152 Fanshawe Street

Auckland 1140

T +64 (0)9 308 2570

www.grantthornton.co.nz

Independent Auditor’s Report

Why the audit matter is significant

Intangible assets – Capitalisation of

internally developed software, amortisation

and impairment testing of intangible assets

not yet ready for use

Intangible assets carrying value of $4,615,000 at

31 March 2026 ($3,359,000 at 31 March 2025) is

comprised of computer software, development in

progress and customer relationships.

The Group is a Software as a Service (“SaaS”)

provider and incurs significant expenditure in

developing and maintaining its software assets.

NZ IAS 38 Intangible Assets outlines the criteria for

capitalisation of costs associated with developing

the software including assessing whether the

software will generate future economic benefits.

As disclosed in Note 8, capitalised software

costs are recognised at cost and subsequently

amortised over their estimated useful lives. Costs

that do not meet the criteria for capitalisation are

expensed as incurred.

In addition to the above, the software asset

includes development in progress of $758,000 at

31 March 2026 ($1,487,000 at 31 March 2025).

NZ IAS 36 Impairment of Assets requires intangible

assets that are not yet available for use to be

tested annually for impairment.

Capitalisation of internally generated intangible

assets, the determination of their estimated lives,

and impairment testing of intangible assets under

development involves significant estimate and

judgement and therefore is also a key audit matter.

How our audit addressed the key

audit matter

We evaluated the appropriateness of intangible

asset capitalisation and assessed impairment

testing of intangible assets.

In respect to capitalised intangible assets, our

procedures, amongst others, included the following:

• We obtained an understanding of the controls

and processes implemented by management

to ensure that capitalisation assessments are

appropriate and that costs are appropriately

determined;

• We obtained managements paper analysing

asset additions during the period, and the basis of

determination of costs for capitalised assets;

• We selected a sample of projects capitalised

during the year and ensured the capitalisation

criteria within NZ IAS 38 – Intangible Assets

were appropriately satisfied. We also reviewed

supporting documentation for amounts

capitalised.

In respect to the amortisation of intangible assets,

our procedures, amongst others, included the

following:

• We obtained an understanding of the controls

and processes implemented by management

to ensure that useful life assessments are

appropriate;

• We obtained managements paper supporting the

basis for their assessments of useful lives applied

to capitalised assets;

• We assessed the basis of managements

useful lives for reasonableness and ensured

amortisation periods applied to intangible assets

were consistent with those assessments.

31

FINANCIAL STATEMENTS

In respect to impairment assessments, our
procedures, amongst others, included the following:

• We performed procedures to evaluate the Group’s

determination of CGUs. This included reviewing

internal management reporting to assess the

level at which the Group monitors performance,

comparing CGU’s to our knowledge of the Group’s

operations and reporting systems, and reconciling

assets allocated to CGUs to accounting records;We

obtained management’s impairment assessments

and tested the completeness and mathematical

accuracy of the value in use calculations;

• We obtained management’s impairment

assessments and tested the completeness

and mathematical accuracy of the value in use

calculations;

• We considered and challenged key assumptions

within the impairment assessments and assessed

the models’ compliance with NZ IAS 36;

• We compared the forecast cash flows used for

FY26 to the Board approved business plan; and

• We reviewed management’s assessment of

redundant or superseded development activities

and assessed this against our knowledge of the

Group’s operations.

Other procedures of note included the following:

• We reviewed disclosures in the consolidated

financial statements for reasonableness and

appropriateness.

Information Other than the

Consolidated Financial Statements

and Auditor’s Report thereon

The Directors are responsible for the other

information. The other information comprises the

Annual Report and the corporate governance

disclosures, but does not include the consolidated

financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements

does not cover the other information and we do

not express any form of audit opinion or assurance

conclusion thereon.

In connection with our audit of the consolidated

financial statements, our responsibility is to read the

other information and, in doing so, consider whether

the other information is materially inconsistent

with the consolidated financial statements or our

knowledge obtained in the audit or otherwise appears

to be materially misstated. If, based on the work we

have performed, we conclude that there is a material

misstatement of this information, we are required

to report that fact. We have nothing to report in this

regard.

Directors’ responsibilities for the

Consolidated Financial Statements

The Directors are responsible on behalf of the Group

for the preparation and fair presentation of the

Consolidated financial statements in accordance with

New Zealand equivalents to International Financial

Reporting Standards issued by the New Zealand

Accounting Standards Board and IFRS Accounting

Standards, and for such internal control as the

Directors determine is necessary to enable the

preparation of Consolidated financial statements that

are free from material misstatement, whether due to

fraud or error.

In preparing the consolidated financial statements,

the Directors are responsible on behalf of the Group

for assessing the Group’s ability to continue as a

going concern, disclosing, as applicable, matters

related to going concern and using the going concern

basis of accounting unless the Directors either intend

to liquidate the Group or to cease operations, or have

no realistic alternative but to do so.

Auditor’s responsibilities for the

Audit of the Consolidated Financial

Statements

Our objectives are to obtain reasonable assurance

about whether the financial statements as a whole

are free from material misstatement, whether due to

fraud or error, and to issue an auditor’s report that

includes our opinion. Reasonable assurance

is a high level of assurance but is not a guarantee that

an audit conducted in accordance with ISAs (NZ) will

always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate,

they could reasonably be expected to influence the

economic decisions of users taken on the basis of

these Consolidated financial statements.

A further description of the auditor’s responsibilities

for the audit of the financial statements is located on

the External

Reporting Board’s website at: https://www.xrb.

govt.nz/standards/assurance-standards/auditors-

responsibilities/audit-report-1

Restriction on use of our report

This report is made solely to the Company’s

shareholders, as a body. Our audit work has been

undertaken so that we might state to the Company’s

shareholders, as a body those matters which we are

required to state to them in an auditor’s report and

for no other purpose. To the fullest extent permitted

by law, we do not accept or assume responsibility to

anyone other than the Company and its shareholders,

as a body, for our audit work, for this report or for the

opinion we have formed.

Grant Thornton New Zealand Audit Limited

B Smith

Partner

Wellington

26 May 2026

Grant Thornton New Zealand Audit Limited


L4, Grant Thornton House

152 Fanshawe Street

Auckland 1140

T +64 (0)9 308 2570

www.grantthornton.co.nz

32

FINANCIAL STATEMENTS

Consolidated Statement of
Comprehensive Income

For the year ended 31 March 2026


2026

2025

Notes$000s$000s

Operating revenue

49,2478,995

Expenses

Employee expenses5(5,133)(5,076)

Other expenses6(2,878)(2,516)

Depreciation and amortisation7,8(1,026)(817)

Asset impairment8(21)(74)

Finance costs9(18)(52)

Total expenses (9,076)(8,535)

Net profit before income tax 171460

Income Tax benefit10119221

Net profit for the period 290681

Other comprehensive income

––

Total comprehensive profit for the period290681

Earnings per share

CentsCents

Basic earnings per share110.190.48

Diluted earnings per share110.190.48

The above statement should be read in conjunction with the accompanying notes.

Consolidated Statement of Financial

Position

As at 31 March 2026


20262025


Notes$000s$000s

Assets


Current assets


Cash and cash equivalents214,521309

Cash and cash equivalents - customer funds2118,20512,034

Term deposits - customer funds2117,00024,200

Trade receivables 190181

Other assets 291343

Total current assets 40,20737,067

Non-current assets


Deferred tax assets101,3191,200

Term deposits - customer funds219,9501,700

Property, plant and equipment7243352

Intangible assets84,6153,359

Total non-current assets


16,1276,611

Total assets


56,33443,678

33

FINANCIAL STATEMENTS

For and on behalf of the Board of Directors, who authorised the issue of these Consolidated
Financial Statements on 26 May 2026:


Shelley Ruha

Chair

26 May 2026

Jim Sybertsma

Audit & Risk Committee Chair

26 May 2026

Consolidated Statement of Financial

Position (continued)

As at 31 March 2026


20262025

Notes$000s$000s

Liabilities

Current liabilities

Trade and other payables594522

Funds due to customers and IRD2145,15537,935

Employee benefits535364

Other liabilities484435

Lease liabilities75140

Total current liabilities46,84339,396

Non-current liabilities


Lease liabilities37111

Total non-current liabilities 37111

Total liabilities 46,88039,507

Net assets 9,4544,171

Equity


Share capital1219,12214,159

Reserves18188158

Accumulated losses (9,856)(10,146)

Equity attributable to the owners of the Company


9,4544,171

The above statement should be read in conjunction with the accompanying notes.

34

FINANCIAL STATEMENTS

Share-based
payment reserve

Share

Capital

Accumulated

losses

To t a l

Notes$000s$000s$000s$000s

Balance as at 1 April 2024 21213,659(10,827)3,044

Comprehensive profit

Net profit for the period––681681

Other comprehensive income––––

Total comprehensive profit––681681

Transactions with owners


Share-based payments, net of

tax

18446––446

Share-based payments paid up12(500)500––

Total transactions with owners(54)500–446

Balance as at 31 March 202515814,159(10,146) 4,171

The above statement should be read in conjunction with the accompanying notes.

Consolidated Statement of Movements

in Equity

For the year ended 31 March 2026

Share-based

payment reserve

Share

Capital

Accumulated

losses

To t a l


Notes$000s$000s$000s$000s

Balance as at 1 April 2025 15814,159(10,146)4,171

Comprehensive profit

Net profit for the period

––290290

Other comprehensive income

––––

Total comprehensive profit––290290

Transactions with owners


Share-based payments, net of

tax

18430––430

Share-based payments paid up12(400)400––

Issue of ordinary shares–4,563–4,563

Total transactions with owners304,963–4,993

Balance as at 31 March 202618819,122(9,856)9,454

35

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements
For the year ended 31 March 2026

1. General information

PaySauce Limited (the “Company” or “PaySauce”), is a for-profit limited liability company,

domiciled and incorporated in New Zealand and registered under the Companies Act 1993. The

company is an FMC Reporting Entity for the purpose of the Financial Markets Conduct Act 2013.

PaySauce is listed on the New Zealand Stock Exchange (“NZX”) that trades under the ticker PYS.

PaySauce is a SaaS fintech platform delivering digital payroll solutions across 14 jurisdictions

in Asia-Pacific. The technology enables small employers to digitally onboard, pay and manage

employees from any device. The platform includes rosters, mobile timesheets, payroll

calculations, banking integration, automated payments, PAYE filing, labour costing, and

automated general ledger entries. The PayNow feature enables customers’ employees to access

the pay they’ve earned before payday, providing a free alternative to payday lenders.

The consolidated financial statements for the Company and its subsidiaries (the “Group”) for the

year ended 31 March 2026 were authorised in accordance with a resolution of the directors for

issue on 26 May 2026 and are audited.

2. Summary of material accounting policies

a. Basis of preparation

These consolidated financial statements have been prepared:

• in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”)

• in accordance with New Zealand equivalents to International Financial Reporting Standards

(“NZ IFRS”) and other applicable Financial Reporting Standards, as appropriate for profit

oriented entities

• in accordance with International Financial Reporting Standards (“IFRS”)

• in accordance with the requirements of the Financial Markets Conduct Act 2013;

• on the basis of historical cost;

• in New Zealand dollars (NZD), which is the functional currency of the Group, with all values

rounded to the nearest one thousand dollars ($1,000) unless otherwise stated;

• on the assumption that the Group is a going concern.

Consolidated Statement of Cash Flows

For the year ended 31 March 2026


20262025


Notes$000s$000s

Cash flows from operating activities



Receipts from customers6,8546,136

Interest received1,9032,514

Payments to suppliers and employees(6,780)(6,436)

Taxes (paid) / refunded16(16)

Interest paid on operating leases(18)(32)

Net cash from operating activities before increase

in funds due to customers and IRD

211,9752,166

Increase in funds due to customers and IRD217,2214,326

Net cash from operating activities179,1966,492

Cash flows used in investing activities

Funds on term deposit(1,050)(1,200)

Investment in intangible assets(2,120)(1,629)

Purchases of property, plant and equipment


(90)(35)

Net cash used in investing activities (3,260)(2,864)

Cash used from / (used in) financing activities

Loan repayments


–(650)

Net proceeds from issue of shares4,564–

Repayments of principal portion of lease liability


(117)(127)

Interest paid on borrowings


–(20)

Net cash from / (used in) financing activities 4,447(797)

Net increase in cash and cash equivalents 10,3832,831

Cash and cash equivalents at beginning of the period


12,3439,512

Cash and cash equivalents at end of the period22,72612,343

The above statement should be read in conjunction with the accompanying notes.

36

FINANCIAL STATEMENTS

b. Accounting standards that are issued but not yet effective
NZ IFRS 18 Presentation and Disclosure in Financial Statements

In May 2024, the New Zealand External Reporting Board (XRB) issued NZ IFRS 18 Presentation

and Disclosure in Financial Statements (effective for annual reporting periods beginning on or

after 1 January 2027). This standard replaces NZ IAS 1 Presentation of Financial Statements

and primarily introduces a defined structure for the statement of comprehensive income and

disclosure of management-defined performance measures (a subset of non-GAAP measures) in

a single note together with reconciliation requirements. It also includes enhanced principles on

aggregation and disaggregation which apply to the primary financial statements and notes in

general. The Company is yet to adopt this standard and is in the process of assessing its impacts

particularly with respect to the structure of the Company’s statement of profit or loss, and the

additional disclosures required for management performance measures. However, there will be

no impact on the Company’s net profit.

c. Basis of consolidation

The Group financial statements incorporate the financial statements of the Company and

its subsidiaries as at 31 March 2026. All subsidiaries are wholly owned and controlled by the

Company as at 31 March 2026 and have a reporting date of 31 March 2026 (note 20).

All transactions and balances between the Group are eliminated on consolidation. Amounts

reported in the financial statements of subsidiaries have been adjusted where necessary to

ensure consistency with the accounting policies adopted by the Group.

d. Foreign currency translation

Functional and presentation currency

Items included in the consolidated financial statements of the Group’s entities are measured

using the currency of the primary economic environment in which the entity operates (New

Zealand). The consolidated financial statements are presented in New Zealand dollars ($), which

is the Group’s functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange

rates prevailing at the dates of the transactions or valuation where items are re-measured.

Foreign exchange gains and losses resulting from the settlement of such transactions and from

the translation at year-end exchange rates of monetary assets and liabilities denominated in

foreign currencies are generally recognised in profit or loss.

e. Goods and Services Tax (GST)

All revenue and expense transactions are recorded exclusive of GST. Assets and liabilities are

similarly stated exclusive of GST, with the exception of receivables and payables, which are stated

inclusive of GST..

f. Leases

Lease liabilities are initially measured at the present value of the remaining lease payments,

discounted at the Group’s incremental borrowing rate. Subsequently, the carrying value of the

liability is adjusted to reflect interest and lease payments made.

PaySauce recognised a right-of-use asset and corresponding lease liability for the property lease

entered into during the period at 85 The Esplanade, Petone.

3. Use of critical accounting estimates and judgements

The preparation of the consolidated financial statements requires PaySauce to make a number

of judgements, estimates and assumptions. Estimates and underlying assumptions are reviewed

on an on-going basis.

Information about critical estimates and judgements used in applying accounting policies

that have the most significant effect on the amounts recognised in the consolidated financial

statements are included below and in the following notes:

• Intangible Assets (Note 8)

• Tax Expense (Note 10)

Going concern

The consolidated financial statements have been prepared on a going concern basis.

The Group made a net profit before tax of $0.171 million for the year ended 31 March 2026 (2025:

$0.460 million), had equity at 31 March 2026 of $9.454 million (2025: $4.171 million) and net current

liabilities of $6.637 million (2025: $2.327 million). The Group has net current liabilities due to the

non-current asset classification of $9.950 million of term deposits placed using funds held on

behalf of customers and IRD (see note 21). These deposits would be accessible at short notice in

the event they were required.

The Group had positive operating cash flows before increase in funds due to customers and IRD

of $1.975m (2025: $2.166m).

37

FINANCIAL STATEMENTS

The Directors consider after making due enquiry and having regard to the circumstances which
they consider reasonably likely to affect the Group for the foreseeable future, which is not less

than 12 months from the date these financial statements are approved for issue, that the going

concern assumption is valid.

4. Operating revenue

20262025

$000s$000s

Revenue from contracts with customers

Processing fees7,1626,322

Other services revenue–71

Revenue from other sources

Interest income1,8502,343

Other revenue235259

Total operating revenue9,2478,995


There are no significant estimates or judgements surrounding recognition of revenue.

Revenue from contracts with customers

Processing fees

Revenue from processing fees includes both fixed and incremental components based on the

number of employees and pays processed for the customer. Revenue is recognised at the point

in time the service is provided, which is when the customer’s payroll has been paid to customers’

employees.

Other services revenue

Revenue from sales of digital contracts are recognised when the customer has used the service.

Revenue is recognised at the point in time the service is provided, which is when the customer

uses the contract builder application.

Revenue from other sources

Interest income

Interest income is earned on all funds held on behalf of customers, including net wages payable

to customers’ employees and PAYE and other deductions payable to the IRD (see note 21). The

interest earned on these customers’ funds is determined to be operating revenue by the Group.

Interest income is accrued using the effective interest rate method.

Other revenue

Other revenue is recognised upon completion of services at a point in time.

5. Employee expenses


20262025

$000s$000s

Employee benefits/entitlements4,3414,315

Employee benefits/entitlements - share-based payments554663

Fringe benefit tax3826

Other employee expenses20072

Total employee expenses

5,1335,076

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is

provided.

Employee expenses above contain research and development expenditure of $1.032 million for the year ended 31 March

2026 (2025: $0.976 million).

6. Other expenses

20262025

$000s$000s

Advertising, PR and marketing479311

Audit fees8582

Communications and subscriptions361331

Customer and transactional667691

Other overheads803678

Infrastructure and security348343

Trave l13580

Total other expenses2,8782,516

Other expenses above contain research and development expenditure of $0.172 million for the year ended 31 March 2026

(2025: $0.192 million).

38

FINANCIAL STATEMENTS

7. Property, plant and equipment

Right-of-

use Asset

(Property)

Office

Equipment

Leasehold

Improvements

Computer

Equipment

To t a l

Year ended 31 March

2026

$000s$000s$000s$000s$000s

Opening net book value22970–53352

Additions–26402793

Disposals(12)(4)–(3)(19)

Depreciation(120)(20)(1)(42)(183)

Closing net book value97723935243

As at 31 March 2026

Cost

16615644227593

Accumulated depreciation

(69)(84)(5)(192)(350)

Net book value97723935243

Right-of-

use Asset

(Property)

Office

Equipment

Leasehold

Improvements

Computer

Equipment

To t a l

Year ended 31 March

2025

$000s$000s$000s$000s$000s

Opening net book

value

20386280371

Additions1677–33207

Disposals–(2)–(2)(4)

Depreciation(141)(21)(2)(58)(222)

Closing net book value22970–53352

As at 31 March 2025

Cost4931444236877

Accumulated

depreciation

(264)(74)(4)(183)(525)

Net book value22970–53352

Items of computer, office equipment, leasehold improvements are measured at cost less accumulated depreciation and

accumulated impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the

functionality of the related equipment is capitalised as part of that equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss within the Statement of

Comprehensive Income.

Depreciation is recognised in profit or loss on a straight line basis over the estimated useful lives of each item of equipment.

Depreciation methods, useful lives and residual values are reviewed at each reporting period and adjusted if appropriate. The

depreciation rates for the current and comparative years of significant items of property, plant and equipment are as follows:

Right-of-use asset 20–50%

Office equipment 8.5–67%

Leasehold improvements 12.5–50%

Computer equipment 40%

The carrying values of property, plant and equipment are reviewed annually for impairment when events or changes in

circumstances indicate the carrying value may not be recoverable.

8. Intangible assets

Development

in progress

Computer

Software

Customer

Relationships

To t a l

Year ended 31 March 2026

$000s$000s$000s$000s

Opening net book value1,4871,790823,359

Additions13238–170

Development costs recognised as

an asset

1,950––1,950

Development in progress

recognised as Software

(2,790)2,790––

Asset impairment(21)––(21)

Amortisation–(807)(36)(843)

Closing net book value7583,811464,615

As at 31 March 2026

Cost7586,3673547,479

Accumulated amortisation–(2,556)(308)(2,864)

Net book value7583,811464,615

39

FINANCIAL STATEMENTS

Development
in progress

Computer

Software

Customer

Relationships

To t a l

Year ended 31 March 2025

$000s$000s$000s$000s

Opening net book value9721274

1532,399

Additions85––85

Development costs recognised as an

asset

1,544––1,544

Development in progress recognised

as Software

(1,061)1,061––

Asset impairment(53)(21)–(74)

Amortisation–(524)(71)(595)

Closing net book value1,4871,790823,359

As at 31 March 2025

Cost1,4873,5393545,380

Accumulated amortisation–(1,749)(272)(2,021)

Net book value1,4871,790823,359

Finite life intangible assets

Acquired computer software licences and costs associated with developing computer software

are capitalised on the basis of the costs incurred to acquire and bring the specific software into

use. All intangible assets of PaySauce are finite life intangible assets.

Development expenditure initially recognised as an expense is not recognised as an asset

in subsequent periods. Costs associated with maintaining computer software programs are

recognised as an expense as incurred. Where development activities result in the replacement

of previously capitalised functionality, the associated development costs are classified as

maintenance activity and accordingly expensed, unless the previously capitalised functionality

has been fully amortised.

Developed and acquired software is measured at cost less accumulated amortisation and

impairment losses, if any. Amortisation is recognised in the Statement of Comprehensive Income

on a straight-line basis over no more than 5 years. The remaining useful life of each asset is

reviewed at least annually and the period of amortisation amended accordingly.

Key estimates and judgements

Capitalisation of intangible assets

Management considers the time and associated salary cost of development staff to fall under

the classification of development expenditure for assessment purposes in accordance with the

principles outlined below. No indirect people costs, nor weighting of overheads is applied in these

calculations.

Development expenditure is capitalised if, and only if the Group can demonstrate all of the

following:

• its ability to measure reliably the expenditure attributable to the asset under development;

• the product or process is technically and commercially feasible;

• its future economic benefits are probable;

• its ability to use or sell the developed asset; and

• the availability of adequate technical, financial and other resources to complete the asset under

development.

Accounting for finite life intangible assets

At each reporting date, the useful lives and residual values of finite life intangible assets are

reviewed for indicators of impairment. As at 31 March 2026, the assets were assessed for

indicators of impairment, taking into account the condition of the assets, expected period of use

of the assets by the Group, and expected disposal proceeds from any future sale of the assets.

Indicators of impairment were identified for five of the assets. Upon assessment of the

recoverable amount of the asset, it was determined that no impairment loss be recognised for

intangible assets (2025: $0.021 million).

Accounting for development work in progress

Development in progress has been tested for impairment by reviewing the nature of the events

that originally gave rise to the recognition of the asset, the estimation of future generation of cash

flows and any anticipated changes to the business or product circumstances.

Indicators of impairment were identified for development in progress assets during the year,

with some assets in this category no longer expected to be completed. Upon assessment

of the recoverable amount of the development in progress assets, it was determined that an

impairment of $0.021 million be recognised (2025: $0.053 million).

40

FINANCIAL STATEMENTS

9. Finance Costs

20262025

$000s$000s

Interest paid–20

Finance cost - Interest on lease1832

Total finance costs1852

10. Tax expense & deferred tax

20262025

a. Income tax$000s$000s

Net profit before tax for the period171460

At the New Zealand statutory income tax rate of 28%48129

Non-deductible expenditure (permanent differences)101(53)

Prior period adjustments (temporary differences)(125)(25)

Utilisation of tax losses(24)(50)

Deferred tax adjustments

– Reversal of temporary differences143(102)

– Recognition of tax losses carried forward as deferred tax asset(24)322

Income tax benefit119221


Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the

extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.

20262025

(b) Deferred tax assets & liabilities

$000s$000s

Opening deferred tax assets1,5111,022

Recognised in profit or loss

– Lease liabilities(40)71

– Provisions and accruals3396

– Share-based payments77–

– Unused tax losses(24) 323

Closing deferred tax assets1,5571,512

Opening deferred tax liabilities

31243

Recognised in profit or loss

– Intangible assets(20)(20)

– Right of use asset(37)64

– Share-based payments(65)65

– Software assets48160

Closing deferred tax liabilities238312

Net deferred tax asset1,3191,200

Deferred tax is recognised in respect of temporary differences between the carrying amounts of

assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax is not recognised for:

• temporary differences on the initial recognition of assets or liabilities in a transaction that is not

a business combination and that affects neither accounting nor taxable profit or loss;

• temporary differences related to investments in subsidiaries and jointly controlled entities to

the extent that it is probable that they will not reverse in the foreseeable future; and

• taxable temporary differences arising on the initial recognition of goodwill.

The Group has recognised deferred tax assets in accordance with the key estimates and

judgements below.

41

FINANCIAL STATEMENTS

Key estimates and judgements
The Group holds tax losses of $8.258 million as at 31 March 2026 (2025: $8.346 million) available

to carry forward, subject to shareholder and business continuity being maintained. Deferred

tax assets are only recognised to the extent that it is probable that future taxable profits will be

available to use against the asset. These are reviewed at each reporting period and adjusted if

appropriate. Management has recognised a deferred tax asset as at 31 March 2026 of $1.319

million, representing tax losses of $4.715 million converted at the company tax rate of 28%. Tax

losses carried forward but not yet recognised as deferred tax assets therefore total $3.543 million

as at 31 March 2026.

11. Earnings per share

20262025

Basic earnings per share

Net profit used in calculating earnings per share ($000s)290681

Weighted average number of ordinary shares for basic

earnings per share

149,553,307141,956,883

Basic earnings per share (cents)0.190.48

There are no financial instruments on issue that will dilute the basic earnings per share amounts for the year ended 31 March

2026.

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted

average number of fully paid up ordinary shares on issue during the period.

12. Share capital


DateDetailsWeighted

Average price

(cents per share)

Number of

Shares

$000s

1 April 2025Opening Balance143,168,826

14,159

Issue of shares relating to

employee share schemes

0.21111,585,452

335

Other share-based

payments

0.2260289,321

65

Capital raise0.260013,514,767

3,514

Share purchase plan0.26005,862,087

1,524

Shareholder buyback0.2458(174,459)

(43)

Cost of issuance–


(432)

31 March 2026Closing Balance164,245,99419,122

DateDetailsWeighted

Average price

(cents per share)

Number of

Shares

$000s

1 April 2024Opening Balance

140,982,146

13,659

Issue of shares relating to

employee share schemes

0.22702,003,161460

Other share-based

payments

0.2180183,51940

31 March 2025Closing Balance

143,168,826

14,159

Fully paid up, ordinary shares are classified as equity. Incremental costs directly attributable to

the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.

Dividends

No dividends were declared or paid during the reporting period (2025: None).

Capital Risk Management

The Group considers its capital to comprise its fully paid up, ordinary share capital and

accumulated retained earnings.

42

FINANCIAL STATEMENTS

When managing capital, management’s objective is to achieve optimal long term capital returns
to shareholders and benefits for other stakeholders. Management also aims to maintain a capital

structure that ensures the lowest cost of capital available to the Group.

13. Key management personnel and related parties

Key management personnel compensation

Key management personnel are defined as those persons having authority and responsibility for

planning, directing and controlling the activities of the Group, directly or indirectly and include the

Directors, the Chief Executive Officer and the Executive Leadership Team.

The table below summarises remuneration paid to key management personnel.

20262025

$000s$000s

Directors’ fees215230

Short term employee benefits1,1661,434

Share-based payments151387

Total key management personnel compensation

1,5322,051

Director fees pool

The maximum aggregate amount of remuneration payable in respect of all Directors’ fees, based

on the current number of Directors is $275k per annum. Each non-executive director receives

fees of $45k per annum, with a further $27k and $6.5k per annum added for the Chair of the

Board and the Chair of the Audit & Risk Committee respectively. Directors are not included in

the company share schemes and they are not entitled to earn additional payments. There is no

requirement for Directors to own shares, though they may elect to receive PaySauce Ordinary

Shares in lieu of Directors fees.

Other remuneration disclosures

Outside of director fees, executive salaries and the employee share scheme - there are no

contractual agreements in relation to other types of remuneration.

Related party transactions and balances

A number of key management personnel, or their related parties, hold positions in other entities

that result in them having control or significant influence over the financial or operating policies

of those entities. A number of those entities subscribe to services provided by the Group. None

of the related party transactions are significant to either party. Outside of these transactions,

and the Directors’ fees and short term employee benefits noted above, all other related party

transactions are outlined below:

20262025

Related party transactions during the period

$000s$000s

Cloud hosting services supplied by entities controlled

by related parties

Catalyst.Net Limited

–20

Catalyst Cloud Limited

–3

Related party balances payable at period end

$000s$000s

Directors’ Fees

2135

14. Financial instruments

The Group’s financial assets mainly comprise of Cash and Cash Equivalents and Term Deposits.

Cash and Cash Equivalents is comprised of cash on hand. Term Deposits are measured at

amortised cost. Cash and Cash Equivalents and Term Deposits includes funds collected from

customers as a PAYE intermediary (note 21).

Classification and measurement of financial liabilities

The Group’s financial liabilities include trade and other payables, funds due to customers and IRD,

other liabilities (including an overdraft facility used to operate our BNZ PayNow feature).

Financial liabilities are initially measured at fair value, and, where applicable, adjusted for

transaction costs. Subsequently, financial liabilities are measured at amortised cost using the

effective interest method.

Categories of Financial Assets & Liabilities

The carrying amounts presented in the statement of financial position relate to the following

categories of assets and liabilities.

43

FINANCIAL STATEMENTS


20262025

Financial assets

$000s$000s

Financial assets at amortised cost

Cash and cash equivalents4,521309

Cash and cash equivalents - customer funds18,20512,034

Term deposits26,95025,900

Trade and other receivables190181

Total financial assets49,86638,424


20262025

Financial liabilities

$000s$000s

Financial liabilities at amortised cost

Funds due to customers and IRD45,15537,935

Trade and other payables535427

Other liabilities484434

Total financial liabilities46,17438,796


The Group is exposed to a variety of financial risks. The financial risks arise from the business

activities of the Group. The specific financial risks that the Group is exposed to are discussed

below.

a. Credit risk

As a SaaS business with minimal credit exposure, credit risk is relatively low relating to revenue

received from customers and any associated trade receivables. For other financial assets

(including cash and bank balances), the Group minimises credit risk by dealing exclusively with

high credit rating counterparties.

i. Credit risk concentration profile

The Group manages credit risk by placing its cash and short term investments with high quality

financial institutions. The majority of the Cash and Cash Equivalents are held with ANZ Bank NZ,

ASB Bank, BNZ, Kiwibank and Westpac NZ, which hold the following credit ratings:

Credit Ratings

Standard & Poors

Rating

Fitch

Rating

Moody's

Rating

ANZ Bank NZ

AA-A+A1

ASB Bank

AA-A+Aa3

BNZ

AA-A+A1

Kiwibank

Not ratedAAA1

Westpac NZAA-A+A1

ii. Exposure to credit risk

As the Group does not hold any collateral, the maximum exposure to credit risk is represented by

the carrying amount of the financial assets as at the end of the reporting period.

b. Liquidity risk

Liquidity risk arises mainly from business activities. The Group manages liquidity risk by ensuring

cash flow is planned ahead of time, and funding is planned and organised when required,

to ensure the Group will be able to meet its financial obligations. The following table sets out

the maturity profile of the financial liabilities as at the end of the reporting period based on

contractual undiscounted cash flows (including interest payment computed using contractual

rates or, if floating, based on the rate at the end of the reporting period):

Carrying

amount

To t a l0–6

months

7–12

months

1–2

years

2–5

years

Year ended 31 March 2026

$000s$000s$000s$000s$000s$000s

Funds due to customers and IRD45,15545,15545,155–––

Trade and other payables535535535–––

Other liabilities484484484–––

Lease liabilities112112433237–

To t a l46,28646,28646,2173237–

44

FINANCIAL STATEMENTS

Carrying
amount

To t a l0–6

months

7–12

months

1–2

years

2–5

years

Year ended 31 March 2025

$000s$000s$000s$000s$000s$000s

Funds due to customers and IRD37,93537,93537,935–––

Trade and other payables427427427–––

Other liabilities434434434–––

Lease liabilities252252687210012

To t a l39,04839,04838,8647210012

c. Interest rate risk

PaySauce’s interest rate risk arises from the interest that it earns from its cash and cash

equivalents. These funds are subject to variable interest rates that expose PaySauce to cash flow

interest risk rate. PaySauce does not currently use any derivative products to manage interest

rate risk.

As at balance date, $9.950 million of funds held in term deposits were subject to interest periods

of greater than 12 months.

An analysis of the sensitivity of the Group’s earnings due to movements in interest rates is shown

below:

20262025

Effect on net profit before tax

$000s$000s

Cash and cash equivalents and term deposits

Each 100 basis point increase in interest rate440362

Each 100 basis point decrease in interest rate(440)(362)

The above information is calculated by applying the effective movement to the average balance

of cash and cash equivalents and term deposits. Cash and cash equivalents and Term Deposits

totalled $49.68 million as at 31 March 2026 (2025: $38.24 million).

15. Interest bearing liabilities

The group entered into an agreement on 14 June 2024 for an overdraft facility of $0.35m and

cancelled the facility on 9 March 2026. A General Security Arrangement held over all present and

acquired property of the group was retained.

While the overdraft was in place, the Group was required to maintain an interest coverage ratio of

3 or more, and was tested at the end of each financial quarter. The funding was also provided on

the basis that no dividend be paid out during the term of the facility.

16. Fair values of financial assets and liabilities

The carrying values of short term financial assets and liabilities approximate their fair values.

Short term financial assets include cash, trade and other receivables and related party

receivables.

17. Reconciliation of net profit after tax to net cash flows from operations

20262025

$000s$000s

Net profit after taxation290681

Add back non-cash & non-operating items

Depreciation & amortisation1,026817

Asset impairments & loss on disposal of fixed assets2174

Share-based payment expense30445

Other non-cash & non-operating items39220

Total non-cash & non-operating items:1,7592,037

Movement in working capital

Increase in Trade and other receivables(9)(8)

Increase in Other assets(67)(63)

Increase in Funds due to customers and IRD7,2214,326

Increase in Trade and other payables72124

Increase in Employee benefits 17132

Increase in Other liabilities4944

Total movements in working capital7,4374,455

Net cash inflow from operating activities9,1966,492

45

FINANCIAL STATEMENTS

18. Employee Share Scheme
The Group entered into an employee share scheme (ESS) for the year ended 31 March 2026.

The structure of the FY26 scheme is the same as the FY25 scheme outlined in the financial

statements for the year ended 31 March 2025, as follows:

An ESS agreement is entered into between each eligible employee and the Company stipulating

the value of fully paid up ordinary shares granted. Shares are issued quarterly, at the end of each

quarter, and the number of shares granted is determined by the volume weighted average share

price on each issue date.

New employees may enter the scheme on a quarterly basis as they become eligible, with the

benefit pro-rated accordingly. Equally, employees who leave or become ineligible for the scheme

forfeit their right to be issued shares as part of the ESS agreement.

This equity settled remuneration attracts income tax on the employees. The income tax and other

deductibles are deducted and the net amount of ordinary shares are issued to employees.

Employee share scheme expenses for the year ended 31 March 2026 are as follows:

To t a l

For the year ended 31 March 2026

$000s

ESS expenses

553

Legacy ESS expense & other share-based payments

151

Total share-based payment expense704

To t a l

For the year ended 31 March 2025

$000s

ESS expenses582

Legacy ESS expenses & other share-based payments121

Total share-based payment expense703

Share-based payment reserve

The share-based payment reserve is used to record the accumulated value of shares that have

been expensed to the profit and loss, but not yet issued. Movements in the share-based payment

reserve for the year ended 31 March 2026 are as follows:

DateDetails$000s

1 April 2025Opening Balance158

ESS - expensed341

ESS - shares issued(335)

Legacy ESS & other share-based payments - expensed89

Legacy ESS & other share-based payments - shares issued(65)

31 March 2026Closing Balance188

DateDetails$000s

1 April 2024Opening Balance212

ESS - expensed

375

ESS - shares issued(318)

Legacy ESS & other share-based payments - expensed70

Legacy ESS & other share-based payments - shares issued(181)

31 March 2025Closing Balance158

Share-based payment liabilities

Liabilities associated with share-based payments are accrued based on the estimated value of

the future income tax and other deductibles for the individuals that will be paid by PaySauce on

behalf of each employee when shares are issued. The accrued liability at balance date was as

follows:


20262025

Share-based payment liabilities

$000s$000s

Current8582

Total share-based payment liabilities

8582

The employee liabilities in the consolidated statement of financial position also include other

employee entitlements such as accrued leave.

46

FINANCIAL STATEMENTS

19. Segment reporting
The Group is organised into one reportable operating segment only, being SaaS based

employment and payment solutions for people at work in 14 jurisdictions across the Asia-Pacific

region, primarily within New Zealand. Providing employers the technology to digitally onboard,

pay and manage employees from any device. The PaySauce platform includes rosters, mobile

timesheets, payroll calculations, banking integration, automated payments, PAYE filing, labour

costing, automated general ledger entries and digital employment contracts. The chief operating

decision maker has been identified as the Board of Directors, as it makes all key strategic

resource allocation decisions (such as those concerning acquisition, divestment and significant

capital expenditure).

Overseas revenue earned is not material and no separate geographical segment has been

reported.

Investments in subsidiary

The Company had the following subsidiaries at 31 March 2026:

Entity NameDate of

incorporation

Nature of

business

Equity

held

(%)

Value

held ($)

Country of

incorporation

Balance

date

PaySauce

Operations

Limited

07/01/2015SaaS

Employment

Solutions

100309,278New Zealand31 March

Right

Remuneration

Limited

22/01/2015PAYE

Intermediary

100–New Zealand31 March

Payroll.Kiwi

Limited

01/08/2017Employee Share

Scheme Bare

Trustee

100–New Zealand31 March

PaySauce Pty

Limited

08/02/2023SaaS

Employment

Solutions

100–Australia31 March

Only PaySauce Operations Limited, Right Remuneration Limited and PaySauce Pty Limited are

consolidated in these consolidated financial statements, as Payroll.Kiwi Limited is a non-trading

company.

20. Funds due to customers and IRD

As a PAYE intermediary, PaySauce collects funds from clients which are payable to both clients’

employees (as the employees’ net wages and salaries) and the IRD (as the applicable PAYE,

student loan and other IRD liabilities). These funds are included in PaySauce’s cash and term

deposit balances and in accordance with section RP6 of the Income Tax Act 2007, PaySauce can

earn interest on these funds, but the funds must only be used as follows:

• Payment of net salary or wages to employees of PaySauce’s clients.

• Payment of IRD obligations resulting from pays run on PaySauce software to the IRD, including

PAYE deductions, student loan deductions, superannuation contributions and any other

amount of tax withheld from a payment of salary or wages to IRD.

Under the financial reporting standards movements in these funds do not meet the definition of

either investing or financing activities and so must be classified as operating cash flows. However,

as stated above the use of these funds is restricted and they cannot be used to cover other

PaySauce expenses, the company has therefore presented operating cash flows in the Cash

Flow Statement as both before and after this movement in funds. The value of restricted funds at

reporting date is represented by funds due to customers and IRD as disclosed in the Statement

of Financial Position.

21. Contingencies

As at 31 March 2026 the Group had no contingent liabilities or assets (2025: $nil)

22. Events occurring after the reporting period

No adjusting or significant non-adjusting events have occurred between the reporting date and

the date of authorisation.

47

FINANCIAL STATEMENTS

Corporate Governance
Strong corporate governance protects the Company and as a result our

shareholders, customers, staff, and stakeholders. Our approach to the

recommendations outlined in the NZX Corporate Governance Code (the

Code) are set out below.

This section is structured around the principles detailed in the Code, and explains how PaySauce

is applying the Code’s recommendations. PaySauce documents referred to in this section are

also available online at paysauce.com/investor

The Board considers that, as at 26 May 2026, the Company complied with the recommendations

set by the NZX Corporate Governance Code dated 31 March 2026, unless stated in the sections

outlined below, or in PaySauce’s Corporate Governance Code.

Principle 1 – Code of ethical behaviour

“Directors should set high standards of ethical behaviour, model this

behaviour and hold management accountable for these standards being

followed throughout the organisation.”

Code of ethics

Our code of ethics exists to help our directors, senior management, and employees with not just

doing well, but doing good.

This sets the standard of conduct for all our people. It’s intended to support decision-making

that aligns with PaySauce’s values, business goals, and legal and policy obligations. The board

approves the code of ethics, which covers:

• conflicts of interest

• accepting gifts or benefits

• protecting company assets

• complying with laws and policies

• maintaining confidentiality

• valuing personnel

• transparency

All new directors and employees receive a copy of the code of ethics.

Securities trading policy

PaySauce respects the integrity of New Zealand’s financial markets and insider trading laws. Our

securities trading policy outlines how those laws apply, and the rules we’ve put in place to help

ensure our people follow the law.

Directors, certain employees, and related parties need approval from PaySauce to trade in the

company’s shares. Trading is limited to defined “trading windows”.

All directors’ and senior managers’ shareholdings and shares traded during the year by the

directors and senior managers are published under Directors’ and senior managers’ disclosures.

A director or senior manager must advise the NZX promptly if they trade in the company’s

shares.

Principle 2 – Board composition and performance

“To ensure an effective board, there should be a balance of independence,

skills, knowledge, experience”

The board of directors

The directors are responsible for the corporate governance practices of the company. The

board’s practices are detailed in the Company’s corporate governance code, which lays out

protocols for board operations.

This code complies with the relevant recommendations in the NZX Corporate Governance Code,

and is reviewed annually.

The board’s primary role is to represent and promote the interests of shareholders, ultimately

adding long-term value to the company’s shares.

48

CORPORATE GOVERNANCE

The board carries out its responsibilities according to the following mandate.
• the Board shall have a minimum number of three directors and a maximum of 10;

• the Board shall have at least two directors ordinarily resident in New Zealand;

• the Board shall maintain at least two Independent Directors (as defined in the NZX Main Board

Listing Rules). Where there are eight or more directors, the board will maintain three or one-

third (rounded down to the nearest whole number) of the total number of directors, whichever

is the greater;

• a majority of the directors should not be executives of the Company;

• a director should not have any significant conflict of interest that is potentially detrimental to

the Company, other than and to the extent dealt with in the Corporate Governance Code of the

Company;

• the Board seeks diversity in the skills, attributes and experience of its members across a broad

range of criteria, to represent the diversity of shareholders, business types and regions in

which the Company operates;

• the Board elects a Chair, and can replace them at any time.

• Management must provide the board with accurate information within the timeframe required

for the board to effectively discharge its duties; and

• The effectiveness and performance of the board and its individual members should be re-

evaluated annually.

As at 31 March 2026 the Board comprised of five Directors:

• Asantha Wijeyeratne – Executive Director and CEO

• Gavin Thompson – Non-Independent Director

• Shelley Ruha – Independent Director (Chair)

• Mark Samlal – Independent Director

• Jim Sybertsma – Independent Director (Audit & Risk Committee Chair)

Independence of directors is determined by assessing the directors against the following factors:

• Not currently, or historically (within 3 years) employed in an executive role with PaySauce;

• Not currently holding a senior role in a provider of material professional services to PaySauce;

• No current material business relationship (i.e. as a supplier or customer) to PaySauce;

• Not currently a substantial product holder of PaySauce or a senior manager of a product holder

of PaySauce;

• No current material contractual relationship with PaySauce, other than as a director;

• No close family ties with anyone who would fall into the above categories;

• Has not been a director of PaySauce for a length of time that may compromise independence.

More information on the directors, including their relevant interests, and shareholdings, is

provided in the Directors’ disclosures section of this report and is on the company’s website.

Day-to-day management of PaySauce is delegated to the Chief Executive and the Executive

team.

The board’s responsibilities

The primary responsibilities of the board are to:

• provide overall governance and strategic leadership;

• oversee management’s implementation of the Company’s strategic objectives and

performance;

• oversee the development, adoption and communication of a clear strategy for the Company;

• oversee accounting and reporting systems and ensure the quality and independence of the

Company’s external audit process;

• adopt and regularly review the risk management framework;

• appoint a Chair of the Board and the CEO;

• review and approve the Company’s operating budgets and major capital expenditure;

• adopt and review the Company’s remuneration policy and other corporate governance

documents;

• ensure compliance with the Company’s constitution, continuous disclosure obligations, and the

relevant laws, listing rules and regulations and auditing and accounting principles;

• implement and periodically review the Company’s Code of Ethics, foster high standards of

ethical conduct and personal behaviour and hold accountable those who engage in unethical

behaviours;

49

CORPORATE GOVERNANCE

• periodically assess its own effectiveness in carrying out these functions and the other
responsibilities of the Board.

On appointment to the board by the shareholders, new directors sign a written agreement that

covers the terms of their appointment.

Every year, the board and sub-committees critically evaluate their own performance and

processes. This will identify any training opportunities for individual directors to maintain relevant

and up-to-date skills for their role.

Independent professional advice

With the prior approval of the Chair, each director may seek independent legal and professional

advice, at the company’s expense, about any aspect of PaySauce’s operations to assist in fulfilling

their duties as a director.

Diversity

The PaySauce board and management are determined that all staff and all eligible candidates for

vacant positions should have equal opportunity to demonstrate their skills and experience. This

forms the basis of our diversity policy.

PaySauce embraces uniqueness in our people and welcomes diversity. We believe that difference

builds resilience and innovation. We encourage our employees to be curious and open-minded,

embracing wide-ranging perspectives and working to meet the needs of individuals.

Our approach to diversity is to continually develop a work environment that supports equality,

exchange and inclusion. We believe in accommodating, rather than minimising, the different

needs of our people.

The Board has considered the need for measurable objectives for diversity and determined that

it is not yet appropriate to set measurable objectives due to market conditions and the stage of

the company’s development. That decision will be reconsidered annually. When appropriate

the Board, or a committee appointed by the Board, will set measurable objectives for achieving

diversity (which, at a minimum, will address gender diversity). The Board will annually review

those objectives and the Company’s progress in achieving them. Despite being a small team,

there is diversity across age, gender identity, ethnicity, first language, religion and mobility.

We held the following gender diversity as at 31 March 2026:

As at 31 March 2026

DirectorsExecutive TeamEmployees

Male

4225

Female

1223

To t a l

5448

As at 31 March 2025

DirectorsExecutive TeamEmployees

Male

5220

Female

1225

To t a l

6445

Principle 3 – Board committees

“The board should use committees where this will enhance its

effectiveness in key areas, while still retaining board responsibility.”

Audit and Risk Committee

The Audit and Risk Committee (ARC) assists the board in financial reporting, and risk and

financial/secretarial compliance.

The ARC makes recommendations to the board on appointing external auditors to ensure their

independence. The ARC also monitors 5-yearly rotation of the lead audit partner.

The ARC facilitates communication between the board and external auditors. The committee’s

responsibilities include:

• reviewing the appointment of the external auditor, the annual audit plan, and addressing

auditor recommendations

• reviewing publicly released dividend proposals and financial information

• ensuring that appropriate financial systems and internal controls are in place.

50

CORPORATE GOVERNANCE

The ARC must include at least three directors, and consist of only non-executive directors
and have a majority of independent directors. At least one member must be a director with an

accounting or financial background.

The Chair of the Board cannot also be the Chair of the ARC. The current members are

Jim Sybertsma (Chair), Shelley Ruha, and Gavin Thompson, of which Jim, and Shelley are

independent directors.

The committee usually invites the Executive Team, and at least twice a year invites the external

auditors to attend ARC meetings.

Principle 4 – Reporting and disclosure

“The board should demand integrity in financial and non-financial

reporting, and in the timeliness and balance of corporate disclosures.”

Reporting and disclosure

The board is committed to providing accurate, thorough, and timely information to existing

shareholders and to the market. This means all investors can make informed decisions about

PaySauce.

As an NZX listed company, PaySauce must comply with disclosure requirements under the

NZX Main Board Listing Rules. PaySauce recognises the importance of these requirements in

providing equal access for all investors, or potential investors, to price-sensitive information.

The disclosure and communications policy outlines PaySauce's obligations to meet disclosure

requirements. It also covers related issues, including external communications.

PaySauce has not provided detailed reporting on environmental, economic and social

sustainability risks. Whilst PaySauce is not yet captured by the mandatory climate risk disclosure

reporting regime, management does not consider the business has material exposure to climate

risk given the nature of our business and the increasing diversification of our customer base.

PaySauce publishes key governance and other relevant documents in the investor centre of our

website: paysauce.com/investor

Announcements made to the NZX and reports are also posted on the company’s website.

Principle 5 – Remuneration

“The remuneration of directors and executives should be transparent, fair

and reasonable.”

The board is responsible for setting individual directors’ fees, and monitoring the remuneration of

the Chief Executive and Executive Team.

PaySauce has in place a remuneration policy, outlining the key principles that influence

remuneration practices. This can be found in the Company’s Corporate Governance Code,

located on the Company’s website (at the date of this report, located in section 15 of the

Company’s Corporate Governance Code at paysauce.com/investor).

Further details and disclosures are outlined in the disclosures section of this document.

Principle 6 – Risk management

“Directors should have a sound understanding of the material risks faced

by the issuer and how to manage them. The board should regularly verify

that the Company has appropriate processes that identify and manage

potential and material risks.”

The board is responsible for overseeing internal controls to manage key risks, and has overall

responsibility for managing risk.

The company maintains a risk register to identify and manage risk. The Executive Team is

responsible for maintaining this register, and reporting to the board on a regular basis.

Through the ARC, the board considers the recommendations of external auditors. The board

sees that those recommendations are investigated and appropriate action is taken, where

necessary.

Principle 7 – Auditors

“The board should ensure the quality and independence of the external

audit process.”

The Audit and Risk Committee (ARC) makes recommendations to the board to appoint an

external auditor. The committee also monitors the independence and effectiveness of the

external auditor, and reviews and approves any non-audit services they perform.

51

CORPORATE GOVERNANCE

The committee meets with the external auditor at least twice a year to approve the terms of
engagement, audit partner rotation (at least every 5 years) and audit fee, and to review and

provide feedback on the annual audit plan.

The committee routinely meets with PaySauce’s external auditor, Grant Thornton, without

management present. Grant Thornton also attends PaySauce's ASM.

The company continually monitors its internal control environment.

Principle 8 – Shareholder rights and relations

“The board should respect the rights of shareholders and foster

constructive relationships with shareholders that encourage them to

engage with the issuer.”

Information for shareholders

The company seeks to help investors understand its activities, by communicating effectively

and providing clear and balanced information. In addition to interim and annual reporting, the

company also chooses to release quarterly trading updates to the market.

The company website (www.paysauce.com) provides an overview of the business and

information about its activities. This includes details of the company’s services, latest news,

investor information, key corporate governance information, and copies of significant NZX

announcements. The website also provides profiles of the directors and the Executive Team.

Shareholders have the right to vote on PaySauce's major decisions, in line with the requirements

of the Companies Act 1993 and the NZX Main Board Listing Rules.

Communicating with shareholders

PaySauce works to keep investors well informed, and regularly provides information about

current operations and future plans. This is achieved through our NZX market announcements

and presentations to retail investors.

PaySauce sends notice of the ASM to shareholders, and publishes it on the company website at

least 28 days before the meeting each year.

Disclosures

Employee remuneration

The table below sets out the number of PaySauce Group employees and former employees

who received remuneration and other benefits, including non-cash benefits and share-based

remuneration in excess of $100,000 per annum. Director remuneration is not included in the table

below, and instead set out in a separate section below.

Remuneration rangeEmployees - 2026Employees - 2025

$100,000 - $109,999

52

$110,000 - $119,999

24

$120,000 - $129,999

23

$130,000 - $139,999

12

$140,000 - $149,999–2

$150,000 - $159,99921

$160,000 - $169,999

33

$180,000 - $189,999

1–

$190,000 - $199,999

1–

$210,000 - $219,99911

$220,000 - $229,999

–1

$240,000 - $249,999

–1

$250,000 - $259,999

–1

$310,000 - $319,999–1

$320,000 - $329,9991–

$330,000 - $339,999–1

$450,000 - $459,999–1

$500,000 - $509,9991–

52

CORPORATE GOVERNANCE

Donations
No cash donations were made by the Group during the year ended 31 March 2026 (2025: $Nil).

Board meeting attendance

Board meetings are held in person and/or by teleconference. The Directors attended the

following board meetings during the year ended 31 March 2026:

DirectorBoard Meetings

Attended

ARC Meetings Attended

Shelley Ruha *11 of 112 of 2

Asantha Wijeyeratne10 of 11-

Gavin Thompson11 of 113 of 3

Mark Samlal11 of 11-

Jim Sybertsma11 of 113 of 3

Michael O'Donnell **3 of 31 of 1

Note - If a director was not a member of a particular committee at the time of the relevant meetings ‘-‘ has been recorded.

* Shelley Ruha was elected a member of the Audit & Risk Committee upon Michael’s departure.

** Michael O’Donnell resigned as an Independent Director and member of the Audit & Risk Committee, effective 08 August

2025.

Directors’ share transactions

Directors disclosed, pursuant to section 148 of the Companies Act 1993 and Part 5 of the

Financial Markets Conduct Act 2013, the following acquisitions and disposals of relevant interest

in PaySauce ordinary shares during the year ended 31 March 2026:



DirectorRegistered

holder /

associated

entity

Number

of shares

acquired /

(disposed)

Consider-

ation

Date Note

Jim

Sybertsma

James

Sybertsma

76,923$20,000Feb-26Participation in the Share

Purchase Plan (SPP) as part

of the Offer announced to the

market on 15 December 2025

Mark SamlalMark Samlal115,385$30,000Feb-26Off Market purchase of shares

Asantha

Wijeyeratne

Asantha Peter

Wijeyeratne

(1,634,617)$425,000Jan-26Off Market sales of shares

Asantha

Wijeyeratne

Asantha Peter

Wijeyeratne

(384,615)$0Jan-26Gift of shares

Asantha

Wijeyeratne

Payroll.Kiwi

Limited

28,629$7,733Jan-26Shares issued as part of the

Employee Share Scheme

Mark SamlalMark Samlal41,651$11,250Jan-26Issued shares in lieu of director

remuneration

Gavin

Thompson

Gavin

Thompson

192,000$49,920Dec-25Participation in Placement

Asantha

Wijeyeratne

Wijeyeratne &

Co Ltd

27,750,433$nilDec-25Transfer to Asantha Peter

Wijeyeratne

Asantha

Wijeyeratne

Cloud

Investments

Ltd

8,508,501$nilDec-25Transfer to Asantha Peter

Wijeyeratne

Asantha

Wijeyeratne

Payroll.Kiwi

Limited

33,102$7,733Oct-25Shares issued as part of the

Employee Share Scheme

Mark SamlalMark Samlal42,808$10,000Oct-25Issued shares in lieu of director

remuneration

Asantha

Wijeyeratne

Payroll.Kiwi

Limited

40,698$7,733Jul-25Shares issued as part of the

Employee Share Scheme

Mark SamlalMark Samlal52,632$10,000Jul-25Issued shares in lieu of director

remuneration

Asantha

Wijeyeratne

Payroll.Kiwi

Limited

45,220$7,733Apr-25Shares issued as part of the

Employee Share Scheme

Mark SamlalMark Samlal58,480$10,000Apr-25Issued shares in lieu of director

remuneration

53

CORPORATE GOVERNANCE

Directors’ remuneration
The total Directors’ fees and other remuneration received by the Directors for the period ended 31

March 2026 is outlined below:

31-Mar-2631-Mar-25

DirectorDirector

fees

Other

remuneration

To t a lDirector

fees

Other

remuneration

To t a l

Asantha

Wijeyeratne

Nil$509,069$509,069Nil$451,431$451,431

Gavin

Thompson

$42,083Nil$42,083$40,000Nil$40,000

Michael

O'Donnell*

$17,543Nil$17,543$40,000Nil$40,000

Shelley Ruha$67,917Nil$67,917$65,000Nil$65,000

Mark Samlal$41,250Nil$41,250$40,000Nil$40,000

Jim

Sybertsma

$46,625Nil$46,625$45,000Nil$45,000

*Michael O’Donnell resigned as an Independent Director and member of the Audit & Risk Committee, effective 08 August

2025.

Executive Director remuneration

Asantha Wijeyeratne is the Chief Executive Officer, and held this position as at 31 March 2026.

He did not receive any remuneration in his capacity as a Director, but was remunerated as Chief

Executive Officer as follows:

31-Mar-2631-Mar-25

CEO Remuneration

Asantha WijeyeratneAsantha Wijeyeratne

Salary$342,492 $336,963

Bonuses $33,804 $58,688

Employee Share Scheme$50,706$55,780

Relocation Expenses$82,067–

To t a l

$509,069$451,431

Insurance of Directors and Officers

PaySauce has a Directors’ and officers’ liability insurance policy in place. This provides insurance

for the liabilities of the Directors and officers for acts or omissions in their capacity as Directors or

employees. The insurance policies do not cover dishonest, fraudulent, malicious, or wilful acts or

omissions.

General Disclosures of Interest

Director/ExecCompanyNature of Interest

Asantha WijeyeratneCatalyst IT LimitedShareholder

Cloud Investments LimitedDirector & Shareholder

Payroll.Kiwi LimitedDirector

PaySauce LimitedDirector & Shareholder

PaySauce Operations LimitedDirector

Right Remuneration LimitedDirector

Wijeyeratne & Co LimitedDirector & Shareholder

Gavin ThompsonCatalyst Cloud LimitedDirector

Catalyst IT LimitedDirector & Shareholder

Catalyst.Net LimitedDirector

Catalyst IT Australia Pty LtdDirector

Catalyst IT Europe LtdDirector

PaySauce LimitedDirector & Shareholder

PaySauce Operations LimitedDirector

Truenet LimitedDirector

54

CORPORATE GOVERNANCE

Michael O’Donnell
(resigned 2025)

PaySauce LimitedShareholder, Independent

Director

Realestate.co.nz LimitedDirector

Radio New Zealand LimitedDirector

NZ Trade + Enterprise / G2GChair

Serato Audio Research LimitedDeputy Chair

Stuff MediaNational Columnist

High Tech New ZealandTrustee

Sandfield SoftwareDirector

Tech Startup CouncilMember

Shelley RuhaAnaley Holdings LimitedDirector and Shareholder

IT & Business Consulting LimitedDirector

Analey Investments LimitedDirector and Shareholder

Heartland Bank LimitedIndependent Director

Partners Group Holdings LimitedIndependent Director

Partners Life LimitedDirector

PaySauce LimitedIndependent Chair & Shareholder

New Zealand Rural Land Management GP

Limited

Director

Allied Farmers LimitedIndependent Chair

Allied Farmers Rural LimitedDirector

LONZ 2008 Holdings LimitedDirector

Allied Farmers Property Holdings LimitedDirector

Rural Funding Solutionz LimitedDirector

QWF Holdings LimitedDirector

Allied Farmers (New Zealand) LimitedDirector

Clearwater Hotel 2004 LimitedDirector

LONZ 2008 LimitedDirector

UFL Lakeview LimitedDirector

Lifestyles of New Zealand Queenstown

Limited

Director

5M No.2 LimitedDirector

ALF Nominees LimitedDirector

New Farmers Livestock Finance LimitedDirector

9 Spokes International LimitedIndependent Director

9 Spokes Trustee LimitedDirector

9 Spokes Knowledge LimitedDirector

9 Spokes US Holdings LimitedDirector

9 Spokes UK LimitedDirector

9 Spokes Australia LimitedDirector

9 Spokes US LimitedDirector

Mark SamlalPaySauce LimitedShareholder, Independent

Director

MS&MS Pty LtdFamily Trust

Pay AsiaManaging Director

Astute Corporation Pty LtdDirector

Managed Payroll Services Pty LtdDirector

Integrated Workforce Solutions PTY LtdDirector

IWS BOOKKEEPING AUSTRALIA PTY. LTD.Director

55

CORPORATE GOVERNANCE

Payroll HQ Pty LtdDirector
Pay Asia Australia Pty LtdDirector

Pay Asia Pty LtdDirector

PayMY Outsourcing Sdn BhdDirector

Pay Asia LimitedDirector

Pay Asia HR Services Limited IncDirector

CONG TY TNH H PAY ASIA VIETNAMDirector

Pay Asia (Thailand) LimitedDirector

PT Payasia Konsultansi IndonesiaDirector

Payasia Company LimitedDirector

Pay Asia Management Private LimitedDirector

Payasia BPO Payroll India Private LimitedDirector

PAYGROUP NZ LIMITEDDirector

PayGroup (Shanghai) Human Resource Co.,

Ltd.

Director

PayGroup Pty LtdEmployee - Founder & CEO

PYG NXT 1 IncDirector & Shareholder

DPAYMENTS (SINGAPORE) PTE. LTD

Director

Okratin Solutions Pte. Ltd

Director

Jim SybertsmaPaySauce LimitedDirector, ARC Chair &

Shareholder

Provident Insurance Corporation LimitedDirector

Autodrive Holdings LimitedDirector

RIMANUI FARMS LIMITEDAdvisory Board Member

Hawkesby Management LimitedChief Financial Officer

Note - In some cases, shareholding indicated above may not be held directly. Furthermore, there may be subsidiaries of the above

entities in which the Directors are also interested, without necessarily being a Director, Shareholder, or Officer of that entity.

Director interests in shares

Directors held the following relevant interests in PaySauce ordinary shares at 31 March 2026:

Director

Securities held by Director or associated entity*

Asantha Wijeyeratne34,020,023

Gavin Thompson2,276,978

Michael O’Donnell (resigned 2025)97,835

Shelley Ruha275,877

Mark Samlal525,344

Jim Sybertsma74,650

*Whilst directors are not required to own shares as part of their directorships, all have chosen to own shares

Substantial product holders

The substantial product holders in PaySauce ordinary shares as at 31 March 2026 were as follows:

Substantial product holder

Shares held% of issued shares

Asantha Peter Wijeyeratne34,020,02320.69%

Perpetual Trust Limited21,466,66713.07%

Gondolin Trust14,431,7498.79%

New Zealand Central Securities8,211,2085.00%

56

CORPORATE GOVERNANCE

Twenty largest equity security holders
The 20 largest holders of PaySauce ordinary shares as at 31 March 2026 were as follows:

Rank

Shareholders/InvestorsShares held% of issued shares

1Asantha Peter Wijeyeratne33,774,35020.56%

2Perpetual Trust Limited21,466,66713.07%

3Gondolin Trust14,431,7498.79%

4New Zealand Central Securities8,211,2085.00%

5Masfen Securities Limited7,692,3074.68%

6Adminis Custodial Nominees7,058,7524.30%

7New Zealand Depository Nominee4,551,8822.77%

8David Russell Stewart & Adrienne Ruth

Stewart

4,472,0002.72%

9Charlotte Anne Lockhart3,211,1831.96%

10Ian Stewart Frame & Pamela Anne Frame2,652,7651.62%

11Gavin Thompson2,468,9781.50%

12Robert John Woodward2,312,3071.41%

13Krishnakumar Guda2,062,3071.26%

14Bhagwanji Bhula Rama1,715,0001.04%

15Malcolm William Campbell1,515,0000.92%

16Hugh Anthony Pradeep Fernando1,471,1020.90%

17Lim Family1,458,7950.89%

18Cloud Investments Two Limited1,457,5570.89%

19Geoffrey Wiliam Bennett1,344,9540.82%

20Victoria Ann Taylor1,269,1130.77%

Spread of security holders

The spread of holders of PaySauce ordinary shares as at 31 March 2026 are listed below:

ShareholdersShares

Size of holding (shares)Number%Number%

1 - 10,00027342.13%1,344,1370.82%

10,001 - 50,00020832.10%5,292,4973.22%

50,001 - 100,000649.88%4,730,6022.88%

100,001 - 500,0006510.03%13,714,2508.35%

500,001 - 1,000,000142.16%10,249,0706.24%

1,000,001 and over243.70%128,915,43878.49%

Totals648100.00%164,245,994100.00%

NZX waivers from listing rules

No waivers were granted to PaySauce by NZX during the year ended 31 March 2026, and there

were no waivers that PaySauce relied upon during this period.

57

CORPORATE GOVERNANCE

Company Directory
Directors

Asantha Wijeyeratne

Gavin Thompson

Jim Sybertsma

Mark Samlal

Shelley Ruha

Registered Office

85 The Esplanade

Petone, 5012

New Zealand

Website

PaySauce.com

Auditor

Grant Thornton New Zealand Audit

Limited

Stock Exchange

NZX

Share Registrar

MUFG Corporate Markets

Level 30, PwC Tower

15 Customs St West

Auckland CBD,

New Zealand

NZ Company Number

1719868

NZBN

9429034458099

Investor Calendar

Annual Shareholders MeetingSeptember 2026

FY27 Half year30 September 2026

FY27 Interim result announcementNovember 2026

FY27 Year end31 March 2027

58

CORPORATE GOVERNANCE

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