Beforepay Group (B4P) Q2 2026 earnings summary

Executive summary

• Second quarter ended December 31, 2025, saw strong performance with 18% year-on-year revenue growth, primarily from increased average advance size and strategic growth initiatives, though profit declined due to seasonal defaults and higher investment in Carrington Labs and personal lending.

• Strategic focus on Carrington Labs and personal loans, with notable client wins, product launches, and operational scaling.

Financial highlights

• Revenue grew 18% year-on-year to AUD 12 million, driven by a 17% increase in advances to AUD 240 million and higher average advance size (AUD 470).

• Net transaction margin rose 22% year-on-year to AUD 5.9 million.

• Net defaults increased seasonally to 1.85%, up from 1.75% in Q2 FY25.

• Operating expenses increased to AUD 5.2 million, mainly due to marketing and salary growth, up 11% quarter-on-quarter.

• Net profit before tax was AUD 0.3 million, down from AUD 3.4 million in the previous quarter.

Outlook and guidance

• Q3 expected to see normalized margins and improved profit as seasonal default rates subside, with trading to date in line with expectations.

• Growth initiatives, especially Carrington Labs and personal loans, are expected to become more material contributors over time.

• Continued investment in growth areas, with operating expenses to rise in line with value creation.