Credit Clear Limited has outperformed its FY25 financial guidance with a 76% rise in underlying EBITDA and secured exclusive digital debt recovery contracts with leading insurers, setting a robust stage for FY26 growth.
- Underlying EBITDA jumps 76% to $7.4 million, surpassing guidance
- Revenue climbs 12% to a record $46.9 million, driven by strong June performance
- EBITDA margin expands to 16% from 10%, reflecting operational efficiency
- Secured multi-year digital debt recovery contracts with two major insurance clients
- Strong cash position of $15.6 million supports strategic growth initiatives
Robust Financial Performance
Credit Clear Limited (ASX – CCR) has delivered a standout performance for the financial year ended 30 June 2025, exceeding its own guidance with an unaudited underlying EBITDA of $7.4 million. This represents a remarkable 76% increase compared to the previous year, driven by both revenue growth and disciplined cost management. The company’s revenue rose 12% to a record $46.9 million, buoyed by a particularly strong finish in June 2025.
Margin Expansion and Operational Efficiency
Underlying EBITDA margins expanded significantly to approximately 16%, up from 10% in FY24. This margin improvement underscores Credit Clear’s successful strategy of increasing adoption of its digital debt collection platform alongside rigorous cost control. The company’s hybrid technology model, which blends digital solutions with traditional debt recovery methods, continues to differentiate it in a competitive market.
Strategic Contract Wins in Insurance Sector
Perhaps most notably, Credit Clear secured multi-year contracts with two leading insurance companies, capturing 100% of their digital debt recovery budgets. These deals not only validate the company’s technology and service offering but also highlight its growing role as a preferred partner in the insurance sector. The rapid awarding of these contracts following initial live operations signals strong client trust and the stickiness of Credit Clear’s solutions.
Strong Balance Sheet and Growth Prospects
With a healthy cash balance of $15.6 million as of 30 June 2025, Credit Clear is well-positioned to pursue further growth opportunities. The company is actively exploring loan facilities with several banks to support its expansion plans. Additionally, the onboarding of 182 new enterprise clients across diverse sectors such as telecommunications, financial services, and utilities demonstrates broad market acceptance and scalability of its platform.
Looking Ahead to FY26
CEO Andrew Smith emphasized the momentum gained in FY25 as a foundation for continued growth in FY26. The company’s focus on embedding its technology deeper into client operations is expected to drive further revenue and margin gains. The insurance sector, in particular, is seen as a key area for expansion, with significant upside potential from both existing and prospective Tier-1 and Tier-2 clients.
Bottom Line?
Credit Clear’s FY25 outperformance and strategic contract wins set a promising trajectory, but investors will watch closely for audited results and growth execution in FY26.
Questions in the middle?
- How will the upcoming audited FY25 results compare with these unaudited figures?
- What are the terms and potential impacts of the loan facilities Credit Clear is negotiating?
- Can Credit Clear replicate its insurance sector success across other industries?