Beforepay Group (B4P) Q4 2025 earnings summary

Executive summary

• Achieved record profit before tax of AUD 2.4 million in Q4 FY25, up 76% year-over-year and over 100% sequentially, driven by strong top-line growth, disciplined margin management, and robust credit outcomes.

• Revenue rose to AUD 10.4 million, a 15% year-over-year increase, with active users up 12% year-over-year to nearly 270,000.

• Quarterly advances reached AUD 210.1 million, up 18% year-over-year, with a 13% increase in advances and a 4% rise in average advance size.

• Net defaults improved to 0.56%, down from 1.24% year-over-year, reflecting credit model enhancements.

• Carrington Labs gained significant commercial momentum, signing its first U.S. banking client and a specialty lender, and establishing new partnerships with decision and origination platforms.

Financial highlights

• Net profit before tax reached AUD 2.4 million, a record high, with net transaction margin at AUD 7.7 million (3.68%), up 48% year-over-year.

• Revenue reached AUD 10.4 million, up from AUD 9.0 million year-over-year and AUD 10.1 million sequentially.

• Operating expenses rose to AUD 5 million, up 37% year-over-year and 16% sequentially, reflecting targeted growth investments.

• Cash at bank at quarter end was AUD 14 million, with total cash (including funding accounts) at AUD 19.2 million.

• Free cash flow for the year was approximately AUD 6 million.

Outlook and guidance

• FY26 and FY27 expected to be transformative, with continued growth in personal loans and further scaling of Carrington Labs.

• Q1 typically sees subdued demand due to seasonality, but no concerns for core trading; trading to date is in line with expectations.

• Carrington Labs pipeline is robust, with a diverse mix of U.S. banks, specialty lenders, fintechs, and professional service firms.

• No specific revenue guidance for Carrington Labs, but underlying unit economics are expected to be highly attractive.