Fintech PR
Westport Reports Fourth Quarter and Full Year 2023 Results

VANCOUVER, BC, March 25, 2024 /PRNewswire/ — Westport Fuel Systems Inc. (“Westport“) (TSX: WPRT) (Nasdaq: WPRT) today reported financial results for the fourth quarter and year ended December 31, 2023, and provided an update on operations. All figures are in U.S. dollars unless otherwise stated.
“I am privileged to report that despite challenges last year, we achieved new milestones, evolved strategically, and prioritized operational efficiency and financial strength and, in doing so, we generated record revenues. Consistent with our priority to drive sustainable growth, our team increased sales volumes in our delayed OEM and electronics, and fuel storage businesses, while also increasing the engineering services we delivered in our heavy-duty OEM business.
As we progress, Westport is dedicated to growth and adaptability, continuing to innovate and evolve with the ever-changing regulatory and macro-economic landscapes. Anticipating the road ahead, I am resolved to steer Westport through strategic and decisive actions. Our success hinges on seamlessly integrating disciplined operations with a robust strategic framework. To this end, I will guide our efforts towards three essential pillars: harnessing the potential of our HPDI joint venture to drive success, enhancing operational excellence, and continuous innovation to shape the world’s hydrogen-powered future. We have a lot of work ahead of us. With a dedicated team and the unwavering pursuit of excellence, I have full confidence in our capacity to not only meet but exceed our objectives.”
Dan Sceli, Chief Executive Officer
Financial Highlights
- Revenue of $331.8 million for 2023 and $87.2 million for the fourth quarter. Full year results were primarily driven by increased sales volumes in the delayed OEM, electronics and fuel storage businesses, as well as additional engineering service revenues from the heavy-duty OEM businesses. This growth is partially offset by the negative impact of the lower CNG sales volumes to customers in the India market, lower independent aftermarket sales (“IAM”) volumes in Africa, and lower sales volumes in the hydrogen business.
- Net loss for the year ended December 31, 2023 was $49.7 million, or $2.90 loss per share, compared to net loss of $32.7 million for the prior year. Net loss for the fourth quarter in 2023 was $13.9 million, or $0.81 loss per share, compared to net loss of $16.9 million, or $1.00 loss per share, for the same period in 2022. For the year, the increase in net loss was primarily attributed to the absence of equity income from the prior year’s sale of our interest in the Cummins Westport Inc. (“CWI”) joint venture, the loss on extinguishment of debt due to the settlement of the Cartesian royalty payable, and increases in expenses, which was partially offset by an increase in gross margin and includes the negative impact of inventory write-downs related to the heavy-duty, light-duty and IAM businesses.
- Adjusted EBITDA1 loss of $21.5 million, compared to a loss of $27.8 million in the prior year. Adjusted EBITDA for the fourth quarter was a loss of $10.0 million.
- Cash and cash equivalents were $54.9 million for the year ended December 31, 2023. Cash used in operating activities during the year was $13.2 million.
- Added $11.5 million of new term loans to improve financial flexibility in 2023, with an additional $3.9 million added after year-end.
Consolidated Results |
||||||
($ in millions, except per share amounts) |
Over / (Under) % |
Over / (Under) % |
||||
4Q23 |
4Q22 |
FY23 |
FY22 |
|||
Revenues |
$ 87.2 |
$ 78.0 |
12 % |
$ 331.8 |
$ 305.7 |
9 % |
Gross Margin(2) |
8.0 |
4.6 |
74 % |
48.9 |
36.2 |
35 % |
Gross Margin %(2) |
9 % |
6 % |
— |
15 % |
12 % |
— |
Income from investments accounted for by the equity method (1) |
0.1 |
— |
— |
0.8 |
0.9 |
(11) % |
Net Income (Loss) from Continuing Operations |
(13.9) |
(16.9) |
18 % |
(49.7) |
(32.7) |
(52) % |
Net Income (Loss) per Share from Continuing Operations |
(0.81) |
(1.00) |
19 % |
(2.90) |
(1.91) |
(52) % |
EBITDA (2) |
(10.9) |
(13.5) |
19 % |
(35.9) |
(17.5) |
(105) % |
Adjusted EBITDA (2) |
(10.0) |
(12.9) |
22 % |
(21.5) |
(27.8) |
23 % |
(1) |
This includes income primarily from our Minda Westport. joint venture. |
(2) |
These financial measures and ratios are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation. |
Operational Highlights
Westport closed 2023 focused on driving sustainable growth in our existing markets, unlocking new and emerging markets, driving operational excellence, and extracting efficiencies through prudent capital management. Based on these priorities, Westport can report several achievements that occurred during and subsequent to the fourth quarter of 2023.
- Entering new markets with a two-year H2 HPDI proof of concept project with a leading global provider of locomotives and related equipment for the freight and transit rail industries. The project will adapt Westport’s H2 HPDI™ fuel system for use with the locomotive OEM engine design.
- Awarded a development contract with an estimated value of $33 million with a global heavy truck manufacturer to adapt and commercialize the next generation LNG (“Liquified Natural Gas”) HPDI fuel system for the Euro 7 vehicle platform.
- Westport, together with Volvo Group, completed the signing of the investment agreement to form a joint venture to accelerate the commercialization and global adoption of Westport’s HPDI fuel system technology for long-haul and off-road applications. The closing of the joint venture is subject to certain closing conditions, including regulatory and government approvals. It is anticipated that the joint venture will become operational following the formal closing, which is expected in the second quarter of 2024.
- Early in the first quarter of 2024, the initial Euro 6 LPG fuel systems were delivered to our global OEM customer related to our expanded LPG supply agreement for Euro 6 and Euro 7 vehicle platforms.
__________________________ |
1 Adjusted earnings before interest, taxes and depreciation is a non-GAAP measure. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES in Westport’s Management Discussion and Analysis for the reconciliation. |
Segment Information
Original Equipment Manufacturer (“OEM”)
OEM revenue for the three months and year ended December 31, 2023 was $61.2 million and $222.8 million, respectively, compared with $47.8 million and $198.0 million for the three months and year ended December 31, 2022. The increase of $13.4 million as compared to the fourth quarter 2022 was primarily driven by higher sales volumes in the light-duty OEM and electronics businesses and higher engineering service revenue from the heavy-duty OEM business. This was partially offset by lower sales volumes in heavy-duty OEM, delayed OEM and fuel storage businesses compared to the prior year.
Revenue for the year ended December 31, 2023 increased by $24.8 million compared to the prior year, primarily driven by increased sales volumes in the delayed OEM, electronics and fuel storage businesses, and higher engineering service revenue from the heavy-duty OEM business as well as increased sales volumes in Eastern Europe for our light duty business. This was partially offset by lower sales volumes in our hydrogen business and lower sales in the light-duty OEM business in India.
Gross margin2 increased by $1.6 million to $0.8 million, or 1% of revenue for the three months ended December 31, 2023, compared to negative $0.8 million, or negative 2% of revenue, for the same prior year period. The increase in gross margin for the three months ended December 31, 2023 is driven primarily by increased sales volumes in the light-duty OEM and electronics businesses, as well as increased gross margin in the heavy-duty OEM business due to higher engineering service revenue. The heavy-duty OEM business was negatively impacted by a $4.5 million inventory write-down. In addition, the increased gross margin is partially offset by lower sales volumes in the fuel storage business, a negative sales mix in the hydrogen business, and the higher production input costs stemming from global supply chain challenges and inflation in logistics, utilities, labor and other costs, which we have only partially been able to pass on to our OEM customers.
Gross margin for the year ended December 31, 2023 increased by $11.7 million to $25.3 million, or 11% of revenue, compared to $13.6 million, or 7% of revenue, for the prior year. The increase in gross margin and gross margin percentage for the year ended December 31, 2023 is primarily driven by higher contribution margins from engineering services and higher volumes sales in the delayed OEM and fuel storage businesses. This was offset by lower margins in the hydrogen business due to lower sales volumes and a negative impact on the heavy-duty OEM business due to a $4.5 million inventory write-down.
_______________________________ |
2 Gross margin is a non-GAAP measure. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES in Westport’s Management Discussion and Analysis for the reconciliation. |
Independent Aftermarket
Revenue for the three months and year ended December 31, 2023 was $26.0 million and $109.0 million, respectively, compared with $30.2 million and $107.7 million for the three months and year ended December 31, 2022. The decrease in revenue for the three months ended December 31, 2023 was $4.2 million compared to the prior year period was primarily driven by lower sales volumes in the Africa and South America markets offset by increased sales volumes in Europe. The increase in IAM revenue for the year ended December 31, 2023 was $1.3 million compared to the prior year, primarily driven by higher sales volumes to South America offset by lower sales to Europe and Africa.
Gross margin for the three months ended December 31, 2023 increased by $1.8 million to $7.2 million, or 28% of revenue, compared to $5.4 million, or 18% of revenue, for the same prior year period, primarily driven by the positive sales mix, lower electronic component costs and increased volumes sales in Europe.
Gross margin for the year ended December 31, 2023 increased by $1.0 million to $23.6 million, or 22% of revenue, compared to $22.6 million, or 21% of revenue, for the prior year, primarily driven by higher margins and a positive sales mix in South America. This was partially offset by a negative sales mix in Africa.
SEGMENT RESULTS |
4Q23 |
||||||
Revenue |
Operating income (loss) |
Depreciation & amortization |
Equity income |
||||
OEM |
$ 61.2 |
$ (11.7) |
$ 2.5 |
$ 0.1 |
|||
IAM |
26.0 |
1.9 |
0.6 |
— |
|||
Corporate |
— |
(4.3) |
0.1 |
— |
|||
Total consolidated |
$ 87.2 |
$ (14.1) |
$ 3.2 |
$ 0.1 |
SEGMENT RESULTS |
4Q22 |
||||||
Revenue |
Operating income (loss) |
Depreciation & amortization |
Equity income |
||||
OEM |
$ 47.8 |
$ (12.8) |
$ 1.8 |
$ — |
|||
IAM |
30.2 |
0.6 |
0.8 |
— |
|||
Corporate |
— |
(5.0) |
0.1 |
— |
|||
Total consolidated |
$ 78.0 |
$ (17.2) |
$ 2.7 |
$ — |
2024 Outlook
The alternative fuels industry is becoming more dynamic, driven by increased investment, industrial applications, and policy support. Specifically, the hydrogen project pipeline has approximately 1,400 projects announced globally, with investments totaling US$570 billion and 45 million tons per annum of clean hydrogen supply announced through 20303. Over the same period, hydrogen is expected to not only become more available but also more affordable.
As government policies and regulatory changes worldwide accelerate the shift towards zero emissions, Westport’s alternative fuel-based solutions enable its customers to deliver cleaner performance with practical and affordable applications today. We expect demand for our products and services to continue increasing and the widespread transition to hydrogen-based transport to be competitive with traditional fuels by the 2030s.
As we progress, Westport is dedicated to growth and adaptability, continuing to innovate and evolve with the ever-changing regulatory and macro-economic landscape. Our efforts in 2024 will be guided towards three essential pillars: harnessing the potential of our HPDI joint venture to drive success, enhancing operational excellence, and continuous innovation to shape the world’s hydrogen-powered future. Our success relies on these three essential pillars over the near-, medium- and long-term, respectively:
1) Driving Success Via Our HPDI Joint Venture
Our HPDI joint venture marks a new era for Westport, culminating over two decades of dedication and innovation. The joint venture is a cornerstone of Westport’s business strategy moving forward and it is time to innovate and drive growth together.
Looking to the future, the joint venture will leverage the collective expertise of the partners, capitalize on growth opportunities, and solidify our position as a leader in alternative fuels.
2) Improving Operational Excellence
We are relentless in our pursuit of operational excellence, embarking on bold initiatives to streamline processes, enhance efficiency, and reduce costs. Notably, our restructuring endeavors in India exemplify our commitment to optimizing capital efficiency and maximizing throughput across all operational fronts.
We are starting to deploy a combination of levers to grow earnings and improve profitability, including implementing significant cost-cutting measures expected to encompass both operating and general and administrative expenses.
3) Reimagining A Hydrogen-Powered Future
Embracing the potential for alternative fuels, particularly hydrogen, is exciting as we position ourselves at the forefront of this transformative shift. Armed with advanced technological capabilities, leveraging our existing hydrogen components business and a deep understanding of the market dynamics and customer needs, we are primed to capitalize on emerging growth opportunities while maintaining our commitment to sustainability and relevance in an ever-evolving landscape.
_______________________ |
3 Source: Hydrogen Insights 2023″, Hydrogen Council and McKinsey & Company, December 2023 |
Conference call
Westport has scheduled a conference call for Tuesday March 26, 2024, at 7:00 am Pacific Time (10:00 am Eastern Time) to discuss these results. To access the conference call by telephone, please dial: 1-888-390-0546 (Canada & USA toll-free) or 416-764-8688. The live webcast of the conference call can be accessed through the Westport website at https://investors.wfsinc.com/
To access the conference call replay, please dial 1-888-390-0541 (Canada & USA toll-free) or 1-416-764-8677 using the pass code 618393. The telephone replay will be available until April 9, 2024. Shortly after the conference call, the webcast will be archived on the Westport Fuel Systems website and replay will be available in streaming audio and a downloadable MP3 file.
Financial Statements and Management’s Discussion and Analysis
To view Westport full financials for the fourth quarter and year ended December 31, 2023, please visit https://investors.wfsinc.com/financials/
About Westport Fuel Systems
At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow. We are a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen to the global transportation industry. Our technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America, and South America, we serve our customers in more than 70 countries with leading global transportation brands. At Westport Fuel Systems, we think ahead. For more information, visit www.wfsinc.com.
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements, including statements regarding future strategic initiatives and future growth, future of our development programs (including those relating to HPDI and Hydrogen), our expectations for 2024 and beyond, including the demand for our products, and the future success of our business and technology strategies. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward looking statements. These risks, uncertainties and assumptions include those related to our revenue growth, operating results, industry and products, the general economy, conditions of and access to the capital and debt markets, solvency, governmental policies and regulation, technology innovations, fluctuations in foreign exchange rates, operating expenses, continued reduction in expenses, ability to successfully commercialize new products, the performance of our joint ventures, the availability and price of natural gas, global government stimulus packages and new environmental regulations, the acceptance of and shift to natural gas and hydrogen vehicles, the relaxation or waiver of fuel emission standards, the inability of fleets to access capital or government funding to purchase natural gas vehicles, the development of competing technologies, our ability to adequately develop and deploy our technology, the actions and determinations of our joint venture and development partners, the effects and duration of the Russia–Ukraine conflict, supply chain disruptions as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent Annual Information Form and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward looking statements except as required by National Instrument 51-102. The contents of any website, RSS feed or twitter account referenced in this press release are not incorporated by reference herein.
GAAP and Non-GAAP Financial Measures
Our financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP“). These U.S. GAAP financial statements include non-cash charges and other charges and benefits that may be unusual or infrequent in nature or that we believe may make comparisons to our prior or future performance difficult. In addition to conventional measures prepared in accordance with U.S. GAAP, Westport and certain investors use EBITDA and Adjusted EBITDA as an indicator of our ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations and fund capital expenditures. Management also uses these non-GAAP measures in its review and evaluation of the financial performance of Westport. EBITDA is also frequently used by investors and analysts for valuation purposes whereby EBITDA is multiplied by a factor or “EBITDA multiple” that is based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a company. We believe that these non-GAAP financial measures also provide additional insight to investors and securities analysts as supplemental information to our U.S. GAAP results and as a basis to compare our financial performance period-over-period and to compare our financial performance with that of other companies. We believe that these non-GAAP financial measures facilitate comparisons of our core operating results from period to period and to other companies by, in the case of EBITDA, removing the effects of our capital structure (net interest income on cash deposits, interest expense on outstanding debt and debt facilities), asset base (depreciation and amortization) and tax consequences. Adjusted EBITDA provides this same indicator of Westports’ EBITDA from continuing operations and removing such effects of our capital structure, asset base and tax consequences, but additionally excludes any unrealized foreign exchange gains or losses, stock-based compensation charges and other one-time impairments and costs which are not expected to be repeated in order to provide greater insight into the cash flow being produced from our operating business, without the influence of extraneous events.
EBITDA and Adjusted EBITDA are intended to provide additional information to investors and analysts and do not have any standardized definition under U.S. GAAP, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA exclude the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operations as determined under U.S. GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently.
NON-GAAP FINANCIAL MEASURES RECONCILIATION
Gross Margin |
||||
Years ended December 31, |
||||
2023 |
2022 |
|||
(expressed in millions of U.S. dollars) |
||||
Revenue |
$ 331.8 |
$ 305.7 |
||
Less: Cost of revenue |
$ 282.9 |
$ 269.5 |
||
Gross Margin |
$ 48.9 |
$ 36.2 |
Gross Margin as a percentage of Revenue |
||||
Years ended December 31, |
||||
2023 |
2022 |
|||
(expressed in millions of U.S. dollars) |
||||
Revenue |
$ 331.8 |
$ 305.7 |
||
Gross Margin |
$ 48.9 |
$ 36.2 |
||
Gross Margin as a percentage of Revenue |
15 % |
12 % |
EBITDA and Adjusted EBITDA |
||||||||||||||||
Three months ended |
31-Mar-22 |
30-Jun-22 |
30-Sep-22 |
31-Dec-22 |
31-Mar-23 |
30-Jun-23 |
30-Sep-23 |
31-Dec-23 |
||||||||
Income (loss) before income taxes |
$ 7.6 |
$ (11.5) |
$ (11.0) |
$ (16.4) |
$ (9.7) |
$ (13.0) |
$ (12.0) |
$ (14.0) |
||||||||
Interest expense, net |
1.0 |
0.7 |
0.2 |
0.1 |
0.4 |
(0.1) |
0.2 |
(0.2) |
||||||||
Depreciation and amortization |
3.1 |
3.1 |
2.8 |
2.8 |
3.0 |
3.0 |
3.2 |
3.3 |
||||||||
EBITDA |
$ 11.7 |
$ (7.7) |
$ (8.0) |
$ (13.5) |
$ (6.3) |
$ (10.1) |
$ (8.6) |
$ (10.9) |
||||||||
Stock based compensation |
$ 0.5 |
$ 0.9 |
$ 0.8 |
$ 0.2 |
$ 0.7 |
$ 0.8 |
$ (0.3) |
$ 1.4 |
||||||||
Foreign exchange (gain) loss |
$ 0.8 |
$ 2.5 |
$ 2.7 |
$ 0.4 |
$ 1.1 |
$ 2.4 |
$ 1.4 |
$ (0.9) |
||||||||
Gain on sale of investments |
$ (19.1) |
$ — |
$ — |
$ — |
$ — |
$ — |
$ — |
$ — |
||||||||
Loss on extinguishment of royalty payable |
$ — |
$ — |
$ — |
$ — |
$ — |
$ 2.9 |
$ — |
$ — |
||||||||
Severance costs |
$ — |
$ — |
$ — |
$ — |
$ — |
$ — |
$ 4.5 |
$ — |
||||||||
Impairment of long-term investment |
$ — |
$ — |
$ — |
$ — |
$ — |
$ — |
$ — |
$ 0.4 |
||||||||
Adjusted EBITDA |
$ (6.1) |
$ (4.3) |
$ (4.5) |
$ (12.9) |
$ (4.5) |
$ (4.0) |
$ (3.0) |
$ (10.0)
|
WESTPORT FUEL SYSTEMS INC. |
||||
December 31, 2023 |
December 31, 2022 |
|||
Assets |
||||
Current assets: |
||||
Cash and cash equivalents (including restricted cash) |
$ 54,853 |
$ 86,184 |
||
Accounts receivable |
88,077 |
101,640 |
||
Inventories |
67,530 |
81,635 |
||
Prepaid expenses |
6,323 |
7,760 |
||
Total current assets |
216,783 |
277,219 |
||
Long-term investments |
4,792 |
4,629 |
||
Property, plant and equipment |
69,489 |
62,641 |
||
Operating lease right-of-use assets |
22,877 |
23,727 |
||
Intangible assets |
6,822 |
7,817 |
||
Deferred income tax assets |
11,554 |
10,430 |
||
Goodwill |
3,066 |
2,958 |
||
Other long-term assets |
20,365 |
18,030 |
||
Total assets |
$ 355,748 |
$ 407,451 |
||
Liabilities and Shareholders’ Equity |
||||
Current liabilities: |
||||
Accounts payable and accrued liabilities |
$ 95,374 |
$ 98,863 |
||
Current portion of operating lease liabilities |
3,307 |
3,379 |
||
Short-term debt |
15,156 |
9,102 |
||
Current portion of long-term debt |
14,108 |
11,698 |
||
Current portion of long-term royalty payable |
— |
1,162 |
||
Current portion of warranty liability |
6,892 |
11,315 |
||
Total current liabilities |
134,837 |
135,519 |
||
Long-term operating lease liabilities |
19,300 |
20,080 |
||
Long-term debt |
30,957 |
32,164 |
||
Long-term royalty payable |
— |
4,376 |
||
Warranty liability |
1,614 |
2,984 |
||
Deferred income tax liabilities |
3,477 |
3,282 |
||
Other long-term liabilities |
5,115 |
5,080 |
||
Total liabilities |
195,300 |
203,485 |
||
Shareholders’ equity: |
||||
Share capital: |
||||
Unlimited common and preferred shares, no par value |
||||
17,174,502 (2022 – 17,130,316) common shares issued and outstanding |
1,244,539 |
1,243,272 |
||
Other equity instruments |
9,672 |
9,212 |
||
Additional paid-in-capital |
11,516 |
11,516 |
||
Accumulated deficit |
(1,074,434) |
(1,024,716) |
||
Accumulated other comprehensive loss |
(30,845) |
(35,318) |
||
Total shareholders’ equity |
160,448 |
203,966 |
||
Total liabilities and shareholders’ equity |
$ 355,748 |
$ 407,451 |
WESTPORT FUEL SYSTEMS INC. |
||||
Years ended December 31, |
||||
2023 |
2022 |
|||
Revenue |
$ 331,799 |
$ 305,698 |
||
Cost of revenue and expenses: |
||||
Cost of revenue |
282,862 |
269,496 |
||
Research and development |
26,003 |
23,497 |
||
General and administrative |
44,234 |
37,042 |
||
Sales and marketing |
16,278 |
15,073 |
||
Foreign exchange loss |
3,974 |
6,378 |
||
Depreciation and amortization |
4,299 |
4,416 |
||
Gain on sale of assets |
32 |
62 |
||
377,682 |
355,964 |
|||
Loss from operations |
(45,883) |
(50,266) |
||
Income from investments accounted for by the equity method |
780 |
930 |
||
Gain on sale of investment |
— |
19,119 |
||
Loss on extinguishment |
(2,909) |
— |
||
Interest on long-term debt and amortization of discount |
(2,981) |
(3,351) |
||
Impairment of long-term investment |
(413) |
— |
||
Other income, net |
— |
879 |
||
Interest income, net of bank charges |
2,690 |
1,406 |
||
Loss before income taxes |
(48,716) |
(31,283) |
||
Income tax expense (recovery): |
||||
Current |
1,786 |
1,852 |
||
Deferred |
(784) |
(440) |
||
1,002 |
1,412 |
|||
Net loss for the year |
(49,718) |
(32,695) |
||
Other comprehensive loss: |
||||
Cumulative translation adjustment |
4,473 |
(1,824) |
||
Comprehensive loss |
$ (45,245) |
$ (34,519) |
||
Loss per share: |
||||
Net loss per share – basic |
$ (2.90) |
$ (1.91) |
||
Net loss per share – diluted |
$ (2.90) |
$ (1.91) |
||
Weighted average common shares outstanding: |
||||
Basic |
17,173,016 |
17,122,531 |
||
Diluted |
17,173,016 |
17,122,531 |
WESTPORT FUEL SYSTEMS INC. |
||||
Years ended December 31, |
||||
2023 |
2022 |
|||
Operating activities: |
||||
Net loss for the year |
$ (49,718) |
$ (32,695) |
||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||
Depreciation and amortization |
12,490 |
11,800 |
||
Stock-based compensation expense |
1,727 |
2,066 |
||
Foreign exchange loss |
3,974 |
6,378 |
||
Deferred income tax |
(784) |
(440) |
||
Income from investments accounted for by the equity method |
(780) |
(930) |
||
Interest on long-term debt and accretion of royalty payable |
9 |
314 |
||
Impairment on long lived assets (note 7) |
413 |
— |
||
Change in inventory write-downs to net realizable value |
7,066 |
722 |
||
Net gain on sale of investments |
— |
(19,119) |
||
Net loss on sale of assets |
32 |
62 |
||
Other income, net |
— |
(879) |
||
Bargain purchase gain from acquisition |
2,909 |
— |
||
Change in bad debt expense |
56 |
810 |
||
Changes in operating assets and liabilities: |
||||
Accounts receivable |
5,340 |
(1,528) |
||
Inventories |
9,481 |
(3,505) |
||
Prepaid expenses |
2,869 |
(134) |
||
Accounts payable and accrued liabilities |
(2,448) |
122 |
||
Warranty liability |
(5,829) |
2,341 |
||
Net cash used in operating activities |
(13,193) |
(34,615) |
||
Investing activities: |
||||
Purchase of property, plant and equipment |
(15,574) |
(14,242) |
||
Purchase of intangible assets |
— |
(287) |
||
Proceeds on sale of investments |
— |
31,445 |
||
Proceeds on sale of assets |
161 |
731 |
||
Net cash (used in) provided by investing activities |
(15,413) |
17,647 |
||
Financing activities: |
||||
Drawings on operating lines of credit and long-term facilities |
46,367 |
41,218 |
||
Repayment of operating lines of credit and long-term facilities |
(39,904) |
(55,441) |
||
Repayment of royalty payable |
(8,687) |
(5,200) |
||
Net cash used in financing activities |
(2,224) |
(19,423) |
||
Effect of foreign exchange on cash and cash equivalents |
(501) |
(2,317) |
||
Net decrease in cash and cash equivalents |
(31,331) |
(38,708) |
||
Cash and cash equivalents, beginning of year (including restricted cash) |
86,184 |
124,892 |
||
Cash and cash equivalents, end of year (including restricted cash) |
54,853 |
86,184 |
Inquiries: Investor Relations, T: +1 604-718-2046, [email protected]
View original content:https://www.prnewswire.co.uk/news-releases/westport-reports-fourth-quarter-and-full-year-2023-results-302098641.html
Fintech
Fintech Pulse: Your Daily Industry Brief – March 17, 2025 – Finastra, I2C, Fintech Australia, Mastercard, Paymentology, Rapyd, PayU Global Payment Organization

In today’s rapidly evolving fintech landscape, the convergence of innovative technology, strategic partnerships, and regulatory evolution continues to redefine how financial services are delivered around the world. This in-depth briefing examines the latest news shaping the industry—from strategic partnerships that promise to redefine North American payment technology to emerging concerns about a dual-speed fintech ecosystem, and from groundbreaking initiatives in financial inclusion to transformational mergers and acquisitions. As we navigate these developments, our analysis provides an op-ed perspective, blending factual reportage with expert insights to reveal the implications of these shifts on markets, consumers, and the future of finance.
In this comprehensive article, we cover five pivotal stories that are setting the tone for the fintech industry in 2025. Our analysis not only details the news events but also contextualizes them within broader market trends, regulatory shifts, and the digital transformation journey that is reshaping the world of finance. Read on for an engaging and thoughtful exploration of today’s fintech headlines and what they mean for the industry at large.
I. Setting the Stage: A Dynamic Fintech Landscape
The fintech industry has never been more vibrant or transformative. Over the past decade, advances in digital technology have dismantled traditional financial barriers, leading to innovative solutions that democratize access to financial services. Today, fintech is not just about technology; it is about an evolving ecosystem that includes traditional banks, startups, technology giants, and regulatory authorities all playing their part in driving forward an agenda of innovation, inclusion, and efficiency.
The Digital Revolution in Finance
At the heart of this revolution lies the digital transformation of financial services—a movement fueled by the integration of mobile technology, big data analytics, and the ever-expanding reach of cloud computing. These elements are converging to reshape customer expectations and demand more accessible, personalized, and secure financial solutions. The news we cover today highlights several strategic initiatives that further underscore the transformation currently underway.
In the North American payment technology space, for instance, partnerships are emerging that leverage the combined strengths of industry leaders to deliver cutting-edge payment solutions. Meanwhile, regulators and industry observers alike have noted the need for a balanced approach that addresses the risks and opportunities of a bifurcated fintech ecosystem, where innovation must be balanced with stability. Amid this backdrop, global initiatives aimed at enhancing financial inclusion are making headlines, promising to expand access to banking and digital services for underserved populations.
Navigating the Complexity
Navigating this complex terrain requires not just technological know-how but also a keen understanding of the regulatory, economic, and social forces at play. As fintech firms continue to disrupt traditional financial models, they are also grappling with challenges such as cybersecurity, data privacy, and compliance. Each news story we examine today is a reflection of these broader dynamics—a testament to the multifaceted and often unpredictable nature of the fintech ecosystem.
II. Finastra and I2C Partner on North American Payment Technology
One of the most significant announcements in today’s briefing comes from the strategic collaboration between Finastra and I2C. This partnership is poised to reshape the North American payment landscape by harnessing innovative technology and deep market expertise.
The Strategic Alliance
The Finastra-I2C collaboration signals a bold step forward in the evolution of payment technology. Finastra, known for its robust suite of financial software solutions, and I2C, a leading provider of payment and financial transaction solutions, are joining forces to enhance the payment experience for consumers and businesses alike. This union is expected to create a more integrated, seamless, and secure payment infrastructure that meets the growing demand for digital transactions in a post-pandemic economy.
Source: Fintech Magazine
Key Drivers of the Partnership
Several factors underpin this strategic alliance:
- Innovation and Integration: By combining Finastra’s comprehensive financial software with I2C’s agile payment processing capabilities, the partnership is designed to streamline payment processes and reduce friction in digital transactions.
- Market Expansion: The collaboration is strategically positioned to capture new market segments within North America, leveraging each company’s strengths to create products that are both scalable and adaptive to changing consumer behaviors.
- Enhanced Security: With cyber threats evolving at an unprecedented rate, the integration of advanced security protocols is a critical priority. The partnership aims to build a secure payment ecosystem that can thwart cyber attacks and protect sensitive financial data.
- Regulatory Compliance: Navigating the complex regulatory landscape is essential for sustained growth. Both companies are committed to ensuring that their integrated solutions meet rigorous compliance standards, thereby fostering trust among consumers and regulators alike.
Commentary and Analysis
From an op-ed perspective, the Finastra-I2C partnership is emblematic of a broader trend within fintech: the strategic merging of traditional financial expertise with agile, technology-driven innovation. In a market where customer expectations are constantly rising, collaborations such as this are not just beneficial—they are necessary. The strategic alignment promises to not only enhance operational efficiency but also offer a competitive edge in an increasingly crowded marketplace.
Critics might argue that such alliances could lead to market consolidation, potentially stifling competition. However, the counterargument is equally compelling: by pooling resources and expertise, these partnerships can drive innovation, lower operational costs, and ultimately provide consumers with better, more secure services. In this context, the Finastra-I2C collaboration stands as a beacon of progress, demonstrating how strategic alliances can serve as catalysts for industry-wide transformation.
III. Fintech Australia’s Pre-Budget Submission: A Warning of a Two-Speed Ecosystem
In another significant development, Fintech Australia has issued a stark warning regarding the future of the fintech ecosystem. According to their pre-budget submission, the current trajectory could lead to a “two-speed” fintech landscape, where well-resourced entities accelerate ahead, leaving smaller players and innovators struggling to keep pace.
Understanding the Two-Speed Phenomenon
The notion of a two-speed fintech ecosystem reflects the reality that not all players in the market are equipped with the same resources, technological capabilities, or regulatory support. On one side of the spectrum, established financial institutions and large fintech companies are benefiting from significant investments and advanced infrastructure. On the other, smaller firms and startups may face challenges such as limited capital, regulatory hurdles, and competitive pressures that could marginalize their contributions.
Source: FFNews
Implications for the Industry
This dichotomy raises several important questions:
- Innovation vs. Consolidation: While large companies may drive rapid innovation, there is a risk that smaller innovators could be pushed out of the market, reducing overall diversity and creativity.
- Regulatory Considerations: A one-size-fits-all regulatory approach may inadvertently favor larger players who have the resources to comply with complex requirements. Tailored policies that acknowledge the unique challenges faced by smaller firms might be necessary.
- Economic Impact: A bifurcated ecosystem could have far-reaching implications for economic growth and employment. Startups and smaller firms are often key drivers of innovation and job creation, and their marginalization could have negative ripple effects on the broader economy.
Analysis and Commentary
From a critical standpoint, Fintech Australia’s warning is both timely and essential. The concerns about a two-speed ecosystem resonate with a broader discussion about economic inequality in the digital age. As technology continues to disrupt traditional industries, it is imperative that policymakers strike a balance between fostering innovation and ensuring equitable growth.
The call to address this issue in the pre-budget submission underscores the need for forward-thinking regulatory frameworks that not only support large players but also nurture the growth of startups and smaller firms. In the long run, a more balanced ecosystem could lead to more sustainable innovation, ensuring that the benefits of technological advancements are widely shared across society.
Moreover, this warning serves as a wake-up call for investors and industry leaders. The potential risks associated with a bifurcated fintech landscape are not merely theoretical; they have real-world implications for market stability, consumer choice, and the overall health of the financial ecosystem. It is incumbent upon stakeholders to heed this cautionary note and work collaboratively towards building a more inclusive and resilient industry.
IV. Mastercard and Paymentology: A Bold Push for Financial Inclusion in South Africa
In a region marked by both rapid technological adoption and significant socio-economic challenges, Mastercard’s recent announcement of an enhanced collaboration with Paymentology is a beacon of hope. This initiative is geared toward driving financial inclusion in South Africa by leveraging innovative payment solutions to extend financial services to underserved populations.
A Partnership for Progress
Mastercard, a global leader in payment technology, is deepening its collaboration with Paymentology to design and implement solutions that can make a tangible impact on financial inclusion. The initiative aims to address critical issues such as access to banking services, affordability of digital payments, and the development of sustainable financial products that cater to diverse needs.
Source: Mastercard
Strategic Objectives
Several strategic objectives underscore this initiative:
- Bridging the Gap: One of the primary goals is to bridge the digital divide by ensuring that even those in remote or underserved communities have access to reliable and affordable financial services.
- Technological Innovation: The collaboration seeks to integrate cutting-edge payment technology with localized solutions tailored to the unique challenges of the South African market.
- Empowering Consumers: By improving access to financial services, the initiative aims to empower consumers to make informed financial decisions, thereby contributing to overall economic stability and growth.
- Sustainability and Scalability: A key focus is on building scalable solutions that can be adapted to other emerging markets facing similar challenges, thereby amplifying the impact of the initiative beyond South Africa.
Critical Insights and Commentary
The Mastercard-Paymentology collaboration is emblematic of a broader trend in fintech—using technology as a lever for social change. Financial inclusion remains one of the most pressing challenges in many parts of the world, and initiatives like this are critical for reducing inequality and promoting sustainable economic development.
In our view, this partnership is a step in the right direction. It not only highlights the role of technology in driving financial inclusion but also demonstrates how large multinational corporations can use their expertise and resources to address deep-seated socio-economic issues. However, success in this arena will depend on the ability to balance technological innovation with local insights. The challenges in South Africa are complex, and any solution must be adaptable, context-sensitive, and resilient in the face of evolving economic conditions.
Critics might point to the risks of over-reliance on technology, especially in regions where digital literacy and infrastructure can vary widely. Yet, the strategic focus on localizing solutions and ensuring scalability suggests that this initiative is well aware of these challenges and is taking measured steps to mitigate them. In the long run, such collaborations could serve as models for similar efforts in other emerging markets, demonstrating how targeted investments in technology can drive social and economic progress.
V. The State of Fintech in 2024: Reflecting on the Journey and Charting the Future
A comprehensive view of the fintech landscape cannot ignore the broader context of industry trends, market shifts, and evolving consumer behaviors. An in-depth article from Entrepreneur titled “The State of Fintech in 2024” provides a panoramic overview of these dynamics, offering valuable insights into where the industry stands and where it might be headed.
Key Trends and Developments
Entrepreneur’s article outlines several key trends that have defined the fintech sector over the past year:
- Digital Transformation: The accelerated shift toward digital banking and mobile payments has redefined how consumers interact with financial services.
- Rise of Neobanks: The emergence of digital-only banks, or neobanks, is disrupting traditional banking models by offering streamlined, user-friendly services.
- Increased Regulatory Scrutiny: As fintech solutions become more integrated into everyday financial activities, regulatory bodies are stepping in to ensure consumer protection and system integrity.
- Investment in Innovation: Despite economic uncertainties, investment in fintech startups and technology continues to surge, reflecting a strong belief in the transformative potential of digital finance.
Source: Entrepreneur
Analysis and Reflection
The insights provided by Entrepreneur’s piece serve as a crucial barometer for the fintech industry. The journey of fintech over the past year has been marked by remarkable progress in technological innovation and a growing emphasis on customer-centricity. However, these achievements have not come without challenges. Regulatory hurdles, cybersecurity concerns, and the constant need to adapt to rapidly changing market conditions have all contributed to a complex operating environment.
From an analytical perspective, the state of fintech in 2024 underscores a critical transition point. On one hand, the industry has demonstrated its capacity for rapid innovation and disruption. On the other, it faces the daunting task of integrating these innovations within a framework that is secure, compliant, and accessible to all. The op-ed stance here is clear: the future of fintech hinges on its ability to navigate this delicate balance.
For investors, entrepreneurs, and industry stakeholders, the lessons of 2024 are both inspiring and cautionary. The successes of digital banking and mobile payments offer a blueprint for further innovation. Yet, the challenges highlight the need for more robust risk management, clearer regulatory frameworks, and a more inclusive approach to growth. As the fintech ecosystem continues to mature, the narrative will increasingly be about collaboration, adaptation, and a shared commitment to building a sustainable financial future.
VI. Rapyd Acquires PayU Global Payment Organization: A Strategic Move in Fintech as a Service
The final story in our briefing centers on a major deal that has significant implications for the fintech as a service (FaaS) sector. Rapyd, a leading FaaS platform, has acquired PayU Global Payment Organization (GPO), marking a bold move to consolidate its market position and expand its global reach.
Details of the Acquisition
This acquisition represents a strategic effort by Rapyd to enhance its portfolio and broaden its service offerings. By integrating PayU’s global payment capabilities, Rapyd is not only expanding its operational footprint but also reinforcing its commitment to offering comprehensive, end-to-end financial solutions. The transaction is expected to drive synergies in areas such as cross-border payments, fraud prevention, and regulatory compliance.
Source: Crowdfund Insider
Strategic Implications
The implications of this acquisition are manifold:
- Market Consolidation: The deal is indicative of the broader trend toward consolidation in the fintech space. As competition intensifies, companies are increasingly looking to acquire complementary capabilities to strengthen their market position.
- Enhanced Service Offerings: By bringing together Rapyd’s innovative fintech-as-a-service model with PayU’s established payment infrastructure, the combined entity is well positioned to offer a more robust suite of services to a global clientele.
- Accelerated Innovation: The integration of these two platforms is expected to spur innovation, particularly in the areas of digital payments and cross-border transaction technology.
- Global Reach: With PayU’s extensive network and expertise, Rapyd can further expand its influence in emerging markets and reinforce its commitment to driving financial inclusion on a global scale.
Critical Analysis and Opinion
In an op-ed view, this acquisition is a clear signal that the fintech industry is evolving from a landscape characterized by isolated innovations to one defined by strategic integration and consolidation. The move by Rapyd to acquire PayU GPO is not merely about expanding market share—it is about creating a unified platform that can address the multifaceted needs of modern financial ecosystems.
Critically, the deal also raises questions about the pace of consolidation in fintech. While some industry observers express concern that such mergers may reduce competition, others argue that the complexity of today’s financial challenges demands larger, more integrated solutions. From our perspective, the latter view holds significant merit. As the boundaries between traditional finance and digital innovation continue to blur, strategic acquisitions such as this are essential to maintaining momentum and ensuring that the industry remains responsive to consumer needs.
Moreover, this acquisition underscores the increasing importance of financial services platforms that can operate seamlessly across borders, offering secure, efficient, and scalable solutions. In a world where digital transactions are becoming the norm, the ability to integrate multiple payment modalities and adhere to diverse regulatory frameworks is a competitive advantage that few can afford to ignore.
VII. Synthesizing the Headlines: Implications for the Future of Fintech
With these five stories in perspective, it becomes clear that the fintech industry is undergoing a period of profound transformation. Each headline—from strategic alliances to regulatory warnings, from initiatives aimed at financial inclusion to major acquisitions—offers a glimpse into the multifaceted forces driving the sector.
Innovation as the Driving Force
At its core, the evolution of fintech is about innovation. The Finastra-I2C partnership, for example, demonstrates how collaborative innovation can lead to more integrated and secure payment solutions. Such initiatives are crucial as the industry grapples with challenges like cybersecurity and regulatory compliance. In a market where consumer expectations are constantly rising, innovation is not a luxury but a necessity.
The Role of Strategic Partnerships
Strategic partnerships have emerged as a key strategy for navigating the complexities of today’s financial landscape. Whether it’s Finastra joining forces with I2C or Mastercard collaborating with Paymentology, these alliances are designed to leverage complementary strengths and drive collective progress. By pooling resources, expertise, and technology, these partnerships are better equipped to address the challenges of a dynamic market.
Regulatory and Market Dynamics
The cautionary note from Fintech Australia regarding a two-speed ecosystem is a reminder that innovation must be tempered with inclusivity and sustainability. As the industry continues to evolve, regulatory frameworks will need to adapt to ensure that all players—regardless of size—can contribute to and benefit from the digital revolution. A balanced approach will be critical in fostering an environment where both established giants and nimble startups can thrive.
Consolidation and the Future of Fintech as a Service
The acquisition of PayU GPO by Rapyd highlights the consolidation trend within fintech, particularly in the fintech-as-a-service sector. Such moves are indicative of an industry that is maturing and becoming increasingly integrated. While consolidation carries the risk of reduced competition, it also paves the way for more comprehensive, efficient, and innovative financial solutions that can serve a global market.
Broader Economic and Social Impact
The implications of these developments extend beyond the confines of the fintech industry. Enhanced payment systems, improved financial inclusion, and strategic industry partnerships can have a transformative impact on broader economic trends. For instance, improved access to digital financial services can spur economic growth, increase consumer confidence, and drive overall societal progress. As these trends continue to unfold, stakeholders across the board—governments, businesses, and consumers—will need to adapt to a rapidly changing financial landscape.
Looking Ahead
The fintech industry is at a crossroads. The advancements we see today are not isolated incidents; they are part of a broader movement that is reshaping the future of finance. While challenges remain, the progress in digital payments, regulatory innovation, and strategic collaboration offers a promising outlook. It is clear that the road ahead will be marked by continued innovation, strategic partnerships, and a relentless pursuit of efficiency and inclusion.
From an op-ed perspective, the stories covered in today’s briefing should be seen as both a celebration of technological progress and a call to action. They remind us that while the fintech revolution has made tremendous strides, there is still much work to be done in ensuring that the benefits of these innovations are widely shared and that the industry remains resilient in the face of evolving challenges.
VIII. In-Depth Opinion: What These Developments Mean for Stakeholders
For Industry Leaders
The evolving fintech landscape presents both opportunities and challenges for industry leaders. The strategic alliances and acquisitions highlighted in today’s news illustrate that market consolidation is becoming a norm. This trend, while offering the benefits of streamlined operations and enhanced innovation, also calls for a renewed focus on agility and adaptability. Leaders in the fintech space must be willing to embrace change and foster a culture of continuous innovation to remain competitive in a dynamic environment.
Furthermore, the warning from Fintech Australia regarding a two-speed ecosystem underscores the importance of equitable growth. Industry giants must take proactive steps to support smaller innovators, ensuring that the market remains diverse and vibrant. Collaborative initiatives, mentorship programs, and tailored regulatory support can help bridge the gap between large and small players, fostering a more inclusive ecosystem.
For Investors and Entrepreneurs
Investors and entrepreneurs are uniquely positioned to capitalize on these developments. The increasing consolidation in the market signals opportunities for strategic investments in companies that are well-positioned to leverage emerging trends. However, it also calls for careful due diligence. Investors must look beyond short-term gains and focus on long-term sustainability, considering how strategic partnerships and acquisitions might affect market dynamics.
For entrepreneurs, the challenges outlined by Fintech Australia serve as a reminder of the importance of innovation and adaptability. Startups must be prepared to navigate a competitive landscape by leveraging technology, forming strategic alliances, and continuously refining their business models to meet the evolving needs of the market.
For Regulators and Policy Makers
Regulators and policymakers play a crucial role in shaping the future of fintech. The pre-budget submission by Fintech Australia is a clarion call for regulatory frameworks that are responsive to the complexities of a modern fintech ecosystem. It is imperative that policies are designed not only to protect consumers and ensure system integrity but also to foster an environment where innovation can flourish without creating undue disparities between market players.
A balanced approach to regulation will require ongoing dialogue between industry stakeholders, regulatory authorities, and consumer advocates. By collaborating closely, these groups can develop policies that support technological innovation while safeguarding the interests of all participants in the financial ecosystem.
For Consumers
Ultimately, the impact of these developments is most keenly felt by consumers. Enhanced payment technologies, improved financial inclusion initiatives, and more secure digital transactions directly translate into better, more accessible financial services. Consumers stand to benefit from innovations that make banking more convenient, transparent, and secure, even as they navigate the challenges of a rapidly evolving financial landscape.
However, with these benefits come responsibilities. Consumers must remain vigilant about data privacy and cybersecurity, advocating for transparency and accountability from the financial institutions that serve them. In an industry characterized by rapid change, consumer awareness and engagement are critical to ensuring that technological advancements translate into tangible improvements in everyday financial life.
IX. Strategic Recommendations for a Thriving Fintech Future
Based on today’s coverage and analysis, several strategic recommendations emerge for stakeholders across the fintech spectrum:
-
Embrace Collaborative Innovation:
Industry leaders should continue to explore strategic partnerships, as demonstrated by the Finastra-I2C alliance, to drive innovation and create integrated solutions that benefit the entire ecosystem. -
Promote Inclusive Growth:
Regulators and policymakers must work together with industry stakeholders to develop tailored frameworks that ensure small innovators are not left behind in the digital revolution. -
Invest in Secure and Scalable Technologies:
As digital transactions become increasingly prevalent, a strong focus on cybersecurity and scalable payment infrastructures is essential for maintaining consumer trust and driving market expansion. -
Foster Consumer Education and Engagement:
Enhancing financial literacy and digital awareness among consumers is crucial. Stakeholders should invest in initiatives that empower consumers to make informed financial decisions. -
Leverage Cross-Border Collaboration:
With the acquisition of PayU GPO by Rapyd, it is evident that global partnerships can unlock new markets and drive financial inclusion. Expanding these collaborations will be key to addressing the diverse needs of a global audience. -
Monitor and Adapt to Regulatory Changes:
The dynamic nature of fintech requires continuous monitoring of regulatory developments. Proactive engagement with regulatory bodies can help shape policies that balance innovation with consumer protection. -
Prioritize Sustainability and Long-Term Impact:
Short-term gains should never come at the expense of long-term industry stability. Stakeholders must prioritize investments and strategies that contribute to sustainable growth and equitable development across the fintech ecosystem.
X. Conclusion: Charting the Path Forward
The fintech landscape in 2025 is a study in contrasts—a realm where rapid technological innovation meets complex regulatory challenges, where market consolidation offers both opportunities and risks, and where the promise of financial inclusion remains a driving force for change. Today’s headlines, from strategic partnerships like the Finastra-I2C collaboration to the thought-provoking warning from Fintech Australia, paint a picture of an industry in the midst of transformation.
As we have explored throughout this briefing, the challenges facing the fintech sector are as significant as the opportunities. The evolving nature of payment technology, the push for greater financial inclusion, and the ongoing consolidation in the fintech-as-a-service market are all indicative of an industry that is not only growing but also maturing. This maturation requires stakeholders to adopt a holistic approach—one that values collaboration, embraces innovation, and prioritizes long-term sustainability over short-term wins.
For industry leaders, investors, policymakers, and consumers alike, the path forward is clear: the future of fintech lies in a balanced ecosystem that supports technological progress while ensuring that the benefits of innovation are shared equitably. By fostering collaborative partnerships, investing in secure and scalable solutions, and engaging in proactive regulatory dialogue, the fintech community can build a more resilient, inclusive, and dynamic financial landscape.
In our view, the developments discussed today are more than just isolated news items; they are signposts pointing toward a future where finance is more connected, secure, and accessible to all. The journey may be fraught with challenges, but the destination—a more innovative and inclusive financial ecosystem—is well worth the effort.
As you reflect on today’s insights, consider the broader implications of these trends for your business, investments, or personal financial journey. The dynamic interplay of technology, regulation, and market forces will continue to shape the fintech narrative, and staying informed is key to navigating this rapidly changing environment.
Thank you for joining us on this deep dive into the latest fintech news and analysis. We look forward to bringing you more comprehensive updates as the fintech landscape continues to evolve.
Appendix: Detailed Analysis of Key News Items
A. Finastra and I2C: A Case Study in Strategic Collaboration
The Finastra-I2C partnership offers a rich case study on how combining complementary strengths can yield significant benefits. Finastra’s deep expertise in financial software and I2C’s agile payment processing solutions create a symbiotic relationship that enhances product offerings and market reach. This strategic move reflects a broader trend of consolidation in the fintech space, where integration and innovation go hand in hand.
Key takeaways include:
- Enhanced Operational Efficiency: By merging their respective technologies, Finastra and I2C are poised to streamline payment processes, reduce operational friction, and ultimately improve the user experience.
- Market Penetration: The partnership is expected to facilitate deeper market penetration in North America, particularly as consumer demand for digital payment solutions continues to surge.
- Future Innovation: The combined entity is well-positioned to invest in further research and development, ensuring that their integrated solutions remain at the forefront of technological advancements.
B. Fintech Australia’s Warning: Balancing Growth and Inclusivity
Fintech Australia’s pre-budget submission is a clarion call for a more balanced approach to growth. The warning of a two-speed ecosystem underscores the potential risks of allowing resource-rich entities to dominate the market at the expense of smaller innovators.
- Economic Implications: The division of the market could lead to significant disparities in innovation and consumer choice, ultimately affecting economic growth.
- Regulatory Response: Tailored regulatory policies that address the unique challenges of smaller fintech players will be essential to prevent market monopolization and to promote equitable growth.
C. Mastercard and Paymentology in South Africa: A Model for Financial Inclusion
The enhanced collaboration between Mastercard and Paymentology exemplifies how technology can be harnessed to drive meaningful social change.
- Bridging the Digital Divide: The initiative aims to extend the reach of financial services to underserved communities, thereby promoting economic empowerment.
- Innovative Solutions: By integrating state-of-the-art payment technology with localized solutions, the collaboration is poised to set new benchmarks in financial inclusion.
- Scalability and Global Impact: The success of this initiative in South Africa could serve as a model for similar programs in other emerging markets, highlighting the potential for technology-driven social progress.
D. Reflecting on the State of Fintech in 2024
The broader analysis provided by Entrepreneur on the state of fintech in 2024 serves as a critical reminder of the rapid pace of change in the industry.
- Digital Transformation: The accelerated shift toward digital banking and mobile payments continues to redefine customer experiences.
- Regulatory and Investment Trends: Despite economic uncertainties, continued investments in fintech signal strong confidence in the sector’s long-term growth prospects.
E. Rapyd’s Strategic Acquisition of PayU GPO
Rapyd’s acquisition of PayU Global Payment Organization marks a pivotal moment in the evolution of fintech as a service.
- Market Consolidation: This move highlights the trend toward consolidation in the fintech space, where larger players acquire complementary technologies to offer more integrated solutions.
- Future Growth: The integration of PayU’s capabilities is expected to accelerate innovation, particularly in cross-border payment solutions and digital transaction security.
XI. Final Thoughts: Embracing a Future Defined by Collaboration and Innovation
In closing, the fintech stories we’ve explored today underscore a singular truth: the future of finance is inherently collaborative and transformative. Each strategic move—from Finastra and I2C’s alliance to Rapyd’s acquisition—illustrates the power of partnerships in driving industry evolution. As fintech continues to advance at a breakneck pace, stakeholders must remain vigilant, adaptive, and forward-thinking to harness the full potential of these innovations.
The themes of inclusivity, security, and sustainable growth run deep through these narratives. By addressing the challenges of a two-speed ecosystem and investing in scalable, secure technologies, the fintech community is laying the groundwork for a more resilient and inclusive financial future. In this dynamic landscape, every news item is not merely a headline but a building block in the grand edifice of financial innovation.
Looking ahead, the insights derived from today’s stories will serve as a valuable guide for navigating the complexities of the fintech ecosystem. As the industry continues to evolve, our commitment to delivering thoughtful analysis and actionable insights remains unwavering. We invite our readers to join us in this journey as we chart a course toward a future where technology, collaboration, and innovation converge to create a truly transformative financial landscape.
Thank you for taking the time to engage with our comprehensive briefing. Stay tuned for more updates and in-depth analysis as we continue to monitor the developments that are shaping the future of fintech.
The post Fintech Pulse: Your Daily Industry Brief – March 17, 2025 – Finastra, I2C, Fintech Australia, Mastercard, Paymentology, Rapyd, PayU Global Payment Organization appeared first on News, Events, Advertising Options.
Fintech PR
Invitation to EQT’s Capital Markets Event in London on 22 May 2025 – Value creation through the lens of EQT’s portfolio companies

STOCKHOLM, March 17, 2025 /PRNewswire/ — On 22 May in London, EQT will host a Capital Markets Event focused on EQT’s ownership model and approach to value creation. The afternoon will feature insights from the EQT funds’ portfolio company CEOs, Chairpersons, Industrial Advisors, and EQT’s leadership team.
The event will explore EQT’s thematic investment focus, its repeatable value creation toolbox and its governance model through the lens of several of its portfolio companies – IFS, Reworld, Nord Anglia, IVC Evidensia, WS Audiology, and Credila Financial Services. In parallel, the portfolio company executives will be available for one-on-one meetings with institutional investors.
The day will be hosted by EQT’s newly appointed CEO, Per Franzén, Conni Jonsson, Founder and Chairperson, the Heads of the Private Capital and Infrastructure business lines, and EQT’s Shareholder Relations team.
Hosted in person at Sky Garden in the City of London, the event will begin with registration and lunch at 12:00 pm BST, followed by an afternoon of presentations and discussions.
Attendance is primarily intended for institutional shareholders, analysts, financial advisors, and media. Please register here to attend.
We look forward to welcoming you!
Contact
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
EQT Press Office, [email protected], +46 8 506 55 334
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
PR – Invitation to EQT’s Capital Markets Event in London |
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https://news.cision.com/eqt/i/london-capital-markets-event,c3387673 |
London Capital Markets Event |
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Fintech PR
Repurchases of shares by EQT AB during week 11, 2025

STOCKHOLM, March 17, 2025 /PRNewswire/ — Between 12 March 2025 and 14 March 2025 EQT AB (LEI code 213800U7P9GOIRKCTB34) (“EQT”) has repurchased in total 345,000 own ordinary shares (ISIN: SE0012853455).
The repurchases form part of the repurchase program of a maximum of 4,931,018 own ordinary shares for a total maximum amount of SEK 2,500,000,000 that EQT announced on 11 March 2025. The repurchase program, which runs between 12 March 2025 and 16 May 2025, is being carried out in accordance with the Market Abuse Regulation (EU) No 596/2014 and the Commission Delegated Regulation (EU) No 2016/1052.
EQT ordinary shares have been repurchased as follows:
Date: |
Aggregated volume |
Weighted average |
Aggregated |
12 March 2025 |
115,000 |
307.2624 |
35,335,176.00 |
13 March 2025 |
115,000 |
308.4788 |
35,475,062.00 |
14 March 2025 |
115,000 |
310.7410 |
35,735,215.00 |
Total accumulated |
345,000 |
308.8274 |
106,545,453.00 |
Total accumulated |
345,000 |
308.8274 |
106,545,453.00 |
All acquisitions have been carried out on Nasdaq Stockholm by Skandinaviska Enskilda Banken AB on behalf of EQT.
Following the above acquisitions and as of 14 March 2025, the number of shares in EQT, including EQT’s holding of own shares is set out in the table below.
Ordinary shares |
Class C shares1 |
Total |
|
Number of issued shares2 |
1,241,510,911 |
496,056 |
1,242,006,967 |
Number of shares owned by EQT AB3 |
60,269,191 |
– |
60,269,191 |
Number of outstanding shares |
1,181,241,720 |
496,056 |
1,181,737,776 |
1) Carry one tenth (1/10) of a vote 2) Total number of shares in EQT AB, i.e. including the number of shares owned by EQT AB 3) EQT AB shares owned by EQT AB are not entitled to dividends or carry votes at shareholders’ meetings
|
A full breakdown of the transactions is attached to this announcement.
Contact
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
EQT Press Office, [email protected], +46 8 506 55 334
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/eqt/r/repurchases-of-shares-by-eqt-ab-during-week-11–2025,c4120031
The following files are available for download:
EQT Transactions 20250312 to 20250314 |
|
EQT AB Group |
View original content:https://www.prnewswire.co.uk/news-releases/repurchases-of-shares-by-eqt-ab-during-week-11-2025-302403410.html
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