N1 Holdings Boosts FY25 Revenue 12% Amid Funding Cost Cuts and Cautious SME Lending
N1 Holdings Limited reported a solid FY25 year-to-date profit with revenue growth driven by its SME lending business, while successfully reducing funding costs and maintaining disciplined operations amid ongoing market volatility.
- FY25 YTD net profit of approximately $501,000 and EBITDA of $758,000
- Revenue increased 12.05% year-on-year to $14.66 million
- SME lending accounts for 91% of total cash receipts in Q3 FY25
- Cash balance stood at $7.564 million as of 31 March 2025
- Focused on reducing funding costs, streamlining expenses, and cautious lending policies
Strong Financial Performance Amid Market Challenges
N1 Holdings Limited (ASX: N1H) has released its quarterly activity report and trading update for the period ending 31 March 2025, highlighting a resilient financial performance in a challenging lending environment. The company reported an unaudited net profit of approximately $501,000 and EBITDA of $758,000 for the nine months ended 31 March 2025, alongside a 12.05% uplift in revenue to $14.66 million compared with the prior corresponding period.
This growth was primarily driven by the company’s core SME lending business, which accounted for 91% of total cash receipts during the quarter. The SME lending segment remains the backbone of N1 Holdings’ revenue generation, supported by strong relationships with mortgage brokers and lending partners.
Strategic Focus on Funding and Cost Management
In response to ongoing market volatility and interest rate uncertainty, N1 Holdings has taken decisive steps to streamline expenses and reduce funding costs. The company refined its funding structures to better support revenue and EBITDA growth while preserving liquidity and maintaining a cautious approach to lending.
Notably, N1H has focused exclusively on Australian property-backed loans, deliberately avoiding construction or development lending to mitigate risk amid shifting market conditions. This conservative lending stance is underpinned by pre-defined interest rate parameters and a disciplined operational expenditure framework.
Robust Cash Position and Funding Capacity
As of 31 March 2025, N1 Holdings reported a cash balance of $7.564 million, reflecting its ability to maintain liquidity despite a net cash outflow from operating activities of $7.541 million for the quarter. This outflow was influenced by the timing of commercial lending cash flows and a significant GST payment to the Australian Taxation Office related to a mortgagee sale.
The company also made strong progress in expanding its funding capacity, optimizing funding rates, and enhancing transaction quality to enable scalable growth. The One Lending Fund, a 100% owned subsidiary’s managed fund, contributed approximately $618,000 in revenue for the quarter, although this is accounted for separately from the company’s consolidated revenue.
Outlook and Market Positioning
N1 Holdings continues to monitor economic indicators closely and adapt its funding and lending strategies accordingly. The company’s focus on liquidity preservation, portfolio quality, and cautious lending positions it well to navigate the evolving SME lending landscape, particularly as interest rate volatility persists globally.
With a solid financial foundation and disciplined management approach, N1H aims to remain a preferred private credit lender for Australian SMEs and sophisticated property investors, leveraging its competitive advantages in a market increasingly served by non-bank lenders and alternative funding sources.
Bottom Line?
N1 Holdings’ disciplined approach to funding and lending amid market volatility sets the stage for cautious growth in the SME credit sector.
Questions in the middle?
- How will N1 Holdings manage funding costs if interest rate volatility intensifies?
- What impact will the cautious lending policy have on loan portfolio growth and risk profile?
- Can the company sustain revenue momentum while maintaining strict operational discipline?
