Butn Surges with Record $3.6M Revenue and $41.6M Platform Originations

Strong Financial Momentum

Butn Limited (ASX: BTN) has delivered a standout performance in the second quarter of fiscal 2025, reporting record quarterly revenue of $3.6 million, an 11% increase compared to the same period last year. This growth is underpinned by strong deal flow and effective conversion from both new and existing SME clients, reflecting the market’s growing endorsement of Butn’s innovative funding solutions.

The company’s revenue margin also improved to 3.0%, up from 2.7% in the prior corresponding period, demonstrating enhanced operating leverage and successful repricing strategies. This margin expansion is a key indicator of Butn’s ability to generate higher returns from its platform originations.

Record Platform Originations and Cost Discipline

Platform originations reached a quarterly record of $41.6 million, marking a 16% increase year-on-year and the third consecutive quarter surpassing $40 million. Platform originations now represent approximately 35% of total originations, highlighting the growing diversity and strength of Butn’s strategic partnerships.

Importantly, Butn has managed to reduce net operating cost payments by 15% compared to the previous corresponding period, a direct result of the FY24 business optimisation initiative. This cost discipline has contributed to the company achieving positive net operating cash flow of $0.3 million for the third consecutive quarter, reinforcing the sustainability of its business model.

Strategic Growth and Market Expansion

Beyond financial metrics, Butn is actively pursuing both organic and inorganic growth opportunities. The launch of its Retail Private Credit Fund and the recent announcement of its entry into the APAC crypto-backed lending market signal a strategic diversification of its product offering. By leveraging its proprietary "Originate to Distribute" digital model, Butn aims to provide secured lending services for selected crypto assets, positioning itself at the forefront of fintech innovation in the region.

With a closing cash position of $16.8 million, up 9% from the prior quarter, Butn maintains strong financial flexibility to support these initiatives. The company’s leadership remains optimistic about sustaining momentum into the second half of FY25, buoyed by a growing sales pipeline and ongoing strategic partnerships.

Looking Ahead

Butn’s Q2 results underscore a company successfully balancing growth with operational efficiency. The combination of record revenue, expanding platform originations, and disciplined cost management provides a solid foundation for future expansion. However, the company’s foray into crypto-backed lending introduces new market dynamics and regulatory considerations that will require careful navigation.