Beforepay Posts $2.4M Q4 NPBT, Advances Up 18% to $210M
Beforepay Group Limited reported a record Q4 FY25 with a 76% increase in net profit before tax, driven by strong revenue growth and strategic U.S. partnerships through Carrington Labs.
- Net profit before tax rises 76% to $2.4 million in Q4 FY25
- Revenue grows 15% year-on-year to $10.4 million
- Active users increase 12% to nearly 270,000
- Advances climb 18% to $210.1 million with improved credit performance
- Carrington Labs secures new U.S. clients and strategic partnerships
Record Profitability Caps Strong FY25
Beforepay Group Limited has closed out FY25 on a high note, delivering a 76% surge in net profit before tax to $2.4 million for the fourth quarter. This milestone reflects not only robust revenue growth of 15% year-on-year to $10.4 million but also operational efficiencies and improved credit risk management. Active users climbed 12% to 269,558, underscoring the company’s expanding customer base.
Advances and Credit Quality Drive Margin Expansion
The company’s advances increased 18% year-on-year to $210.1 million, supported by a 13% rise in the number of advances and a modest 4% increase in average advance size. Notably, net defaults halved to 0.56%, a testament to enhancements in Beforepay’s credit model and limit management. This improvement contributed to a 48% jump in net transaction margin to $7.7 million, highlighting the company’s ability to grow revenue while controlling risk.
Strategic Investments and Strong Balance Sheet
Operating expenses rose to $5.0 million, reflecting targeted investments in growth initiatives, including the expansion of Carrington Labs. Despite increased spending, Beforepay maintained a solid balance sheet with equity of $40.3 million and total cash of $19.2 million. The company also repaid $7.5 million of debt during the quarter, optimizing its capital structure and reducing interest costs.
Carrington Labs Accelerates U.S. Market Penetration
On the strategic front, Carrington Labs made significant strides in the United States, announcing new clients such as Utah-based CCBank and specialty lender Doc2Doc. The business also forged partnerships with leading risk-decisioning platforms Oscilar and Taktile, as well as origination platform LendAPI, positioning Beforepay to leverage network effects and scale its AI-powered lending solutions in a technologically mature market.
Outlook and Early FY26 Performance
Beforepay’s CEO Jamie Twiss expressed satisfaction with the quarter’s results, noting that Q1 FY26 trading aligns with expectations and seasonal trends. The company continues to cautiously expand its personal loans product, although volumes remain modest relative to the overall group. Investors will be watching closely to see how the U.S. expansion and credit performance evolve in the coming quarters.
Bottom Line?
Beforepay’s record quarter and U.S. growth initiatives set the stage for a pivotal FY26.
Questions in the middle?
- Will Beforepay sustain its low default rates as lending volumes increase?
- How quickly can Carrington Labs scale its U.S. partnerships into meaningful revenue?
- What impact will the new revolving credit sub-limit have on funding costs and liquidity?
