N1 Holdings Posts $855K Profit, 7.7% Revenue Rise, and Expands Lending Capacity
N1 Holdings reports a profitable FY2025 with strategic expansion into Australia's largest aggregator panel and launches AI-driven credit tools to enhance SME lending operations.
- FY2025 net profit of approximately $855,000 and EBITDA of $1.2 million
- Revenue growth of 7.71% to $19.7 million year-on-year
- Joined Australia’s largest aggregator as an approved lender to expand deal flow
- Launched AI-powered Private Credit tools for brokers and internal use
- Maintained strict lending criteria focused on established Australian properties
Solid Financial Performance Anchors Growth
N1 Holdings Limited (ASX – N1H) closed FY2025 with a net profit of approximately $855,000 and an EBITDA of $1.2 million, marking a steady advance in its financial health. Revenue rose by 7.71% to $19.7 million compared to the previous year, reflecting the company’s effective execution of its SME lending strategy. This growth is underpinned by a disciplined approach to lending, focusing exclusively on loans secured by established Australian properties and avoiding riskier construction lending.
Expanding Distribution and Technology Integration
During the June quarter, N1 Holdings made a significant stride by joining the panel of Australia’s largest mortgage aggregator as an approved lender. This move is expected to substantially increase both the volume and quality of lending deals, positioning N1H to capture a larger share of the SME lending market. Complementing this expansion, the company launched AI-powered Private Credit tools designed to streamline operations and deepen engagement with its broker network. These tools aim to enhance underwriting efficiency and improve borrower experience, signaling N1H’s commitment to leveraging technology for competitive advantage.
Robust Cash Flow and Lending Capacity
Cash flow metrics reinforce the company’s operational strength, with a net cash inflow from operating activities of $4.148 million in Q4 FY2025 and a healthy cash balance of $11.316 million at quarter-end. The company’s total lending capacity stands at approximately $254 million, supported by a mix of $34 million in balance sheet capital, $196 million from various debt facilities, and $24 million managed through the One Lending Fund. This diversified funding base provides N1H with flexibility to scale its lending operations while managing risk prudently.
Maintaining Discipline Amid Market Momentum
Despite increased buyer interest in both residential and commercial property segments, N1 Holdings remains anchored to its conservative lending principles. The company’s strict asset selection criteria and avoidance of construction loans underscore its focus on portfolio resilience. Operational cost optimisation and product enhancements for borrowers further contribute to improved financial performance, suggesting that N1H is balancing growth ambitions with risk management effectively.
Looking Ahead
As N1 Holdings continues to integrate AI tools and expand its distribution channels, the market will be watching closely to see how these initiatives translate into sustained growth and competitive positioning. The company’s ability to maintain disciplined lending while scaling operations will be critical in a dynamic lending landscape increasingly shaped by alternative finance providers.
Bottom Line?
N1 Holdings’ blend of technology adoption and strategic partnerships sets the stage for a pivotal year ahead in SME lending.
Questions in the middle?
- How will AI-powered credit tools impact loan approval speed and risk assessment long term?
- What is the expected timeline for increased deal flow from the aggregator partnership to materially affect revenue?
- How does N1 Holdings plan to navigate potential market volatility while maintaining strict lending criteria?
