How Credit Clear’s AI Platform Fueled a $3.5M Profit Turnaround in FY25
Credit Clear Limited has reported a remarkable turnaround in FY25, posting record revenue growth and a return to profitability driven by its innovative AI-powered debt resolution platform.
- Revenue up 12% to $46.9 million
- Net profit after tax of $3.545 million versus prior year loss
- Underlying EBITDA grows 76% to $7.4 million with margin expansion to 16%
- 182 new clients onboarded, expanding Tier 1 client base
- Strong cash position of $15.6 million supports further growth and technology investment
Record Financial Performance and Profitability
Credit Clear Limited has delivered a standout financial year ending 30 June 2025, reporting revenue of $46.9 million, a 12% increase year-on-year. More notably, the company swung to a net profit after tax of $3.545 million, reversing a loss of $4.497 million in the previous year. Underlying EBITDA surged 76% to $7.4 million, with margins expanding from 10% to 16%, reflecting improved operational leverage and disciplined cost management.
This financial turnaround underscores the success of Credit Clear’s hybrid end-to-end debt resolution platform, which combines advanced AI-driven digital engagement with traditional collections and legal recovery services. The platform’s ability to enhance customer experience while accelerating collections has been a key driver of growth and profitability.
Strategic Client Growth and Market Positioning
During FY25, Credit Clear onboarded 182 new enterprise clients across sectors including telecommunications, insurance, financial services, utilities, and government. The company now counts 19 Tier 1 clients; those generating over $500,000 in annual revenue; and 52 Tier 2 clients, highlighting deepening institutional relationships. Insurance remains a core vertical, with Credit Clear serving as the sole digital collections provider for several major insurers, reinforcing its competitive moat.
The company’s focus on expanding share of wallet with existing clients, rather than solely chasing new customers, has paid dividends. Several Tier 2 clients have been elevated to Tier 1 status, and many new clients are poised to grow into larger accounts, providing a robust pipeline for FY26 and beyond.
Technology and Digital Innovation Driving Efficiency
Credit Clear’s investment in technology continues to transform the debt collection landscape. Its AI-driven engagement platform has increased direct digital payments by 20%, from $116 million to $140 million, enabling customers to settle debts via SMS, email, or WhatsApp without human interaction. This digital-first approach not only reduces operational costs but also improves customer satisfaction, as evidenced by a strong Net Promoter Score of +40 from over 550,000 responses.
The integration of recent acquisitions, including the DRA Group, has streamlined operations and expanded service offerings. The company’s SaaS platform for hardship management further enhances its hybrid model, allowing clients to deliver more empathetic and effective debt resolution programs.
Robust Balance Sheet and Growth Outlook
Credit Clear ended FY25 with a healthy cash balance of $15.6 million, providing financial flexibility to invest in technology and pursue strategic growth initiatives. The macroeconomic environment remains supportive, with rising arrears, near-full employment, and easing household financial pressures creating favorable conditions for debt resolution services.
Looking ahead, the company plans to deepen penetration in Australia, target large enterprise clients across sectors, and explore international expansion opportunities, including in New Zealand and the UK. Management remains vigilant on risks such as regulatory changes, economic conditions, and data privacy but is confident in the company’s scalable technology platform and hybrid service model to sustain growth.
Governance and Leadership
The FY25 results reflect strong leadership under CEO Andrew Smith and Chairman Paul Dwyer, supported by a board with deep industry expertise. The company’s remuneration policies align management incentives with shareholder interests, further underpinning its strategic execution.
Bottom Line?
With momentum building on multiple fronts, Credit Clear is poised to redefine debt resolution in Australia and beyond, but investors will watch closely for execution on its ambitious growth plans.
Questions in the middle?
- How will Credit Clear balance continued investment in technology with margin expansion?
- What impact will regulatory changes have on the company’s hybrid collections model?
- Can Credit Clear successfully scale its platform internationally, particularly in the UK?
