Beforepay Group (B4P) H2 2025 earnings summary

Executive summary

• Achieved net profit after tax of AUD 6.7 million ($6.7m), a 74% increase year-over-year from $3.9m in FY24 and a turnaround from a $6.6m loss in FY23, driven by top-line growth and improved margins.

• Revenue grew 14% year-over-year to $40.2m, with total advances up 14% to $807m and active users rising 12% to 269,558.

• Lending business remains the financial core, with Carrington Labs showing transformative commercial momentum, rapid client growth, and strategic partnerships, especially in the U.S.

• Risk management and automation enabled high loan volumes with low default rates and efficient operations.

Financial highlights

• Net profit after tax reached AUD 6.7 million, a 74% increase from the previous year.

• Net transaction margin increased 29% to $25.1m, with margin as a percentage of advances at 3.1%.

• Total advances increased by 14% to $807m, with active users up 12% to 269,558.

• Loan default rate decreased to 1.1% from 1.4% in FY2024.

• Operating expenses rose 17% to $17.7m, reflecting investment in growth and technology.

• Ended the year with a total cash balance of $19.2m, with $14.0m at bank and $5.2m in funding and settlement accounts.

Outlook and guidance

• Focus for FY2026 is on scaling personal loans, optimizing Pay Advance, and expanding Carrington Labs, especially in the U.S.

• Carrington Labs pipeline remains strong, with revenue expected to be lumpy due to large enterprise contracts.

• No surprises in early FY2026 trading; seasonality expected with slower Q1 user growth but strong credit outcomes.

• Ongoing risk model enhancements and disciplined cost management planned.