findi (ASX:FND) reported revenue of $33.9 million for the six months ended September 30, 2024, an increase of 6.6% from $31.8 million in the prior period. Despite the increase in revenue, the company posted a statutory net loss of $3.9 million, compared with a profit of $1.1 million a year earlier. Earnings per share (EPS) decreased to a loss of 7.28 cents compared to a profit of 3.01 cents in the prior period.

Adjusting for $3.16 million in financing costs related to strategic investments and convertible debt of $1.6 million, Findi recorded a normalized profit of $860,000. The company noted that India’s election-related regulations were a temporary drag on ATM transactions, but they have since returned to past norms.

The company specializes in transaction banking services, including ATM deployment and management, digital payments, and financial services. Findi works with public and private sector banks through its Indian subsidiary Transaction Solutions International.

Key initiatives include Findi’s acquisition of Tata Communications Payment Solutions Limited (TCPSL) for $75.7 million. This will add 4,600 ATMs and a white label platform to deploy 638 ATMs for the Central Bank of India. However, delays in implementing white-label ATMs based on transferred licenses, as well as a net decrease in cash on hand from $46.1 million to $32.3 million as of March 2024, pose a risk to execution risk and cash flow sustainability. There is growing concern about Total debt is $62.2 million.

Chairman Nicholas Smedley said: “We are on track to deliver long-term sustainable growth for our shareholders.”

Findi reaffirms fiscal 2025 guidance of $80 million to $90 million in revenue and $30 million to $35 million in EBITDA, with strong second half driven by State Bank of India deal and introduction of white-label ATMs I expect it to be.

Findi stock is trading 15.48% lower at $6.55.