Beforepay Group (B4P) Q2 2025 earnings summary

Executive summary

• Achieved sixth consecutive quarter of profitability, with record profit before tax of AUD 1.1 million, up 95% year-on-year for Q2 FY25.

• Revenue surpassed AUD 10 million for the first time, reaching AUD 10.2 million, a 7% quarter-on-quarter and 12% year-on-year increase.

• Active users grew to 257,627, up 3% quarter-on-quarter and 9% year-on-year.

• Launched a new Personal Loan product, expanding beyond the core Pay Advance business.

• EBITDA was AUD 2.4 million for the quarter.

Financial highlights

• Net transaction margin for the quarter was AUD 4.8 million, up from AUD 4.4 million in Q2 FY24 but down 31% sequentially.

• Total advances issued reached AUD 206.5 million, an 8% quarter-on-quarter and 13% year-on-year increase.

• Net default rate was 1.75%, up from 0.46% in Q1 FY25, reflecting seasonal trends.

• Operating expenses were AUD 3.6 million, down from AUD 5.3 million in Q1 FY25 due to a one-off share-based payment adjustment.

• Cash at bank was AUD 18.3 million, with an additional AUD 4.8 million held at a third-party settlement, totaling AUD 23.1 million in available cash.

Outlook and guidance

• Confident in continued profitability and growth, with positive expectations for both core and new business lines.

• Q3 FY25 trading to date is in line with expectations and seasonal patterns.

• Anticipates increased cost base as Carrington Labs offering is accelerated, including hiring a US-based salesperson.

• Personal loan product remains in testing phase, with broader rollout dependent on credit analytics and funding readiness.

• Carrington Labs expected to scale as more clients are onboarded, with potential for significant long-term growth.