Beforepay Group (B4P) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly profit of $3.4 million, the strongest in company history, up 98% year-over-year and 137% sequentially, reflecting multi-year strategic initiatives.

• Revenue rose 20% year-over-year to $11.3 million, driven by higher advance volumes and a 15% increase in average advance size.

• Focused on higher value, less risky customers, resulting in improved profitability and a significant increase in average advance size.

• Personal loans and Carrington Labs growth initiatives are progressing, with nearly 1,500 personal loans totaling $3.94 million issued and new partnerships expanding risk analytics capabilities.

• Announced two new Carrington Labs partnerships, expanding capabilities in cash flow underwriting and risk analytics.

Financial highlights

• Quarterly advances reached $226.4 million, up 19% year-over-year and 8% sequentially.

• Net profit before tax improved by 98% compared to the prior year, reaching $3.4 million.

• Net transaction margin increased 19% year-over-year to $8.4 million, with margin as a percentage of advances at 3.69%.

• Net default rate was 0.67%, up from 0.46% year-over-year but improved from 0.76% in the prior quarter.

• Maintained strong balance sheet: equity at $43.1 million, total cash at $19.2 million (including $14.1 million cash-at-bank).

Outlook and guidance

• Q2 trading is in line with expectations and seasonal trends, with an anticipated seasonal uptick in defaults during the holiday season.

• Continued focus on maintaining average advance size above $400 and prioritizing higher value customers.

• FY 2026 expected to be a significant year for personal loans.

• Focus shifting toward expected net transaction margin rather than active user numbers.