Beforepay Group (B4P) investor relations material

Executive summary

• Q4 FY26 marked a significant turning point, with strategic initiatives materially contributing to performance, including record Net Transaction Margin of $9.2m and Net Profit Before Tax of $2.4m, and revenue reaching $14.8m, up 43% year-over-year.

• Personal loans scaled rapidly, with originations up 47% quarter-on-quarter to $7.2m, and advances up 47% from last quarter.

• Substantially completed rollout of interest on Pay Advances, with interest income rising from $0.1m in April to $0.8m in June.

• The business is shifting focus from user acquisition to deepening monetization per user, emphasizing higher-value, lower-risk customers.

• FY27 is expected to be the first full year to benefit from interest charged on nearly all Pay Advances.

Financial highlights

• Quarterly revenue rose 43% year-on-year to $14.8m, driven by higher advance volumes and interest income.

• Net profit before tax reached $2.4m, up 68% year-on-year and 566% sequentially; Net profit after tax was $3.4m, up 844% sequentially and 21% year-on-year, including $1.0m deferred tax asset recognition.

• Advances increased 22% year-on-year to $255.4m, driven by larger average advance sizes and personal loan growth.

• Net transaction margin hit a record $9.2m, up 26% year-on-year and 16% sequentially, with margin as a percentage of advances at 3.60%.

• Operating expenses fell 13% sequentially to $5.9m, aided by reductions in employment and digital marketing costs.

• Cash position stood at $12.9m, with equity at $48.6m at quarter end.

Outlook and guidance

• FY27 is expected to be very strong, with continued benefits from personal loan scaling, Pay Advance repricing, and the new $100m debt facility, which is expected to reduce annual funding costs by over $1m.

• Incremental profit from Pay Advance interest repricing could have added $12.5m to FY26 profit if fully applied, suggesting similar upside for FY27.

• No formal profit forecast was provided, but management confirmed the key drivers for future growth.