Payhawk quadruples IFRS revenue in two years; ARR up 78%

This article first appeared as a Press release.

The news

• Payhawk sees annual recurring revenue (ARR) rise of 78% to €39.5 million
• Annualised average revenue per account (ARPA) increase of 21% to €25.9k
• New Product, Market & Leadership milestones

(Cont. from above): Annual recurring revenue (ARR) rose 78% to €39.5 million, supported by net revenue retention (NRR) of 173.5% (12-month cohort average) as customers expanded their use of the platform. IFRS revenue reached €23.4 million, up 85% year over year and nearly 4× the €5.9 million reported in 2022. Annualised average revenue per account (ARPA) increased 21% to €25.9k, reflecting sustained up-market traction.

Finance orchestration brings corporate cards, expense management, accounts payable, and procure-to-pay together with ERP/HR systems, automating policy enforcement, approvals, payments and reconciliation across entities — building on Payhawk’s spend-management foundation and now enhanced by context-aware AI agents.

In 2024, Payhawk expanded gross margin on net revenue (IFRS) to 82%, reduced net cash used in operating activities by 34% to €22.0 million (operating cash burn), and ended the year with €109.6 million in cash. While continuing to invest in product innovation, regulatory infrastructure, and international expansion, operating loss metrics improved year over year: non-GAAP operating loss decreased 10% to €24.5 million, and IFRS operating loss narrowed to €31.3 million (2023: €33.9 million). The shift reflects stronger unit economics and greater operating leverage as the platform scales.

Product, market & leadership milestones

• Regulatory infrastructure (EU & UK): Secured a UK Electronic Money Institution (EMI) licence to complement EU authorisation and initiated 2025 UK customer-migration plans, consolidating control over payment flows and long-term cost efficiency.
• Connected ecosystem: Deeper ERP/accounting integrations (e.g., Sage Intacct, DATEV, Odoo, Exact Globe) and expanded advanced card controls across 32 countries; partnerships with J.P. Morgan Payments and American Express strengthen global payment capabilities and policy enforcement.
• AI Office of the CFO (launched 2025): Introduced intelligent agents that handle complex workflows — such as expense document retrieval, business travel booking, procurement requests, payment verification, and policy compliance — via a conversational interface. By embedding company rules and context, the agents help teams run end-to-end finance processes with minimal manual effort.
• Leadership (2025): Strengthened the management team with Dan Osburn (Chief Payments Officer, 1 April 2025), Thibaud Catry (Chief Compliance Officer, 1 April 2025), and Stephen Mulholland (Chief Revenue Officer, 1 June 2025) to support the next phase of scale.

Hristo Borisov, Co-founder & CEO, says:

We’re scaling with quality. In two years, we’ve nearly quadrupled IFRS revenue while expanding margins and reducing operating cash use. With NRR at 173.5% and ARPA up 21%, customers are adopting more of the platform as we move from spend management to finance orchestration — unifying cards, payables, and real-time payments with intelligent automation. With €109.6m in cash and our own EU and UK EMI licences, we’re investing in the infrastructure and capabilities enterprises need for the next decade.

Konstantin Dzhengozov, Co-founder & CFO continues:

The unit-economics engine is working. Gross margin on net revenue is 82%, LTV/CAC is 8.0×, and net cash used in operating activities fell 34%. Pair that with NRR of 173.5% and ARPA growth, and you have efficient expansion — more value per customer and a path to greater operating leverage as volumes migrate to our own regulated payments stack.

By the numbers (FY2024):

• IFRS revenue: €23.4m (+85% YoY; ~4× vs. 2022)
• Annual recurring revenue (ARR): €39.5m (+78% YoY)
• Net revenue retention (NRR): 173.5% (12-month cohort average)
• Gross margin (on net revenue): 82%
• Net cash used in operating activities: €22.0m (−34% YoY)
• Non-GAAP operating loss: €24.5m (−10% YoY); IFRS operating loss: €31.3m (2023: €33.9m)
• Cash & equivalents: €109.6m
• Annualised ARPA: €25.9k (+21% YoY)
• LTV/CAC: 8.0× (vs. 4.7× in 2023)

Find out more about Payhawk's AI Office of the CFO and learn how smart agentic support can help power your growth with slashed manual work and greater control.