Butn Delivers Record Revenue and Positive Cash Flow, Secures $100M Funding Boost
Butn Limited has reported record revenue growth and its first positive operating cash flow for FY25, alongside securing a substantial $100 million funding facility to fuel future expansion.
- Record FY25 revenue of $14.6 million, up 8%
- Maiden positive operating cash flow of $1.7 million
- Originations increased 5% to $491 million, with platform originations up 19%
- Secured $100 million debt facility from Northleaf Capital Partners post year-end
- Launched Retail Private Credit Fund and expanded into APAC crypto-backed lending
Strong Financial Turnaround
Butn Limited (ASX – BTN) has marked FY25 as a transformative year, posting record revenue of $14.6 million, an 8% increase from the previous year, and achieving its maiden positive operating cash flow of $1.7 million. This turnaround from a $2.4 million operating cash outflow in FY24 signals improved operational discipline and effective business optimisation.
The company’s EBITDA swung dramatically from a loss of $1.4 million in FY24 to a positive $5.5 million in FY25, underscoring a significant improvement in profitability. Despite still reporting a statutory loss after tax of $2.7 million, the narrowing of losses and positive cash flow highlight a healthier financial footing.
Platform Growth and Originations Momentum
Butn’s platform continues to gain traction, with originations reaching $491 million, up 5% year-on-year. Notably, platform originations surged 19%, reflecting strong demand from small and medium-sized enterprises (SMEs) leveraging Butn’s embedded funding technology. Key performance metrics such as user transactions, engagement, and new registrations all hit record highs, cementing Butn’s role as a trusted SME funding partner.
Maintaining a low non-recoverable write-off rate of just 0.3% of originations, down from 0.5% the prior year, Butn demonstrates effective risk management in its lending portfolio.
Strategic Funding and Expansion Initiatives
Butn strengthened its capital structure through a $10 million two-tranche institutional placement and a $10 million corporate credit facility with Mighty Partners during FY25. Post year-end, the company secured a $100 million syndicated debt facility from Northleaf Capital Partners, replacing existing corporate notes and extending funding maturity up to four years. This substantial facility provides scalable, committed capital to support Butn’s growth ambitions.
Strategically, Butn launched its Retail Private Credit Fund in October 2024 to finance diversified asset-backed lending opportunities, leveraging its “Originate to Distribute” model. Additionally, the company entered the APAC crypto-backed lending market through a partnership with APX Lending and is exploring expansion into North America, signaling a bold move into emerging fintech sectors.
Outlook and Market Positioning
Entering FY26, Butn is positioned with strong operating leverage, a robust funding base, and a deep pipeline of organic and inorganic growth opportunities. Management’s focus on disciplined growth, cash generation, and shareholder value creation suggests confidence in scaling the platform and diversifying revenue streams.
Co-CEO Rael Ross highlighted the milestone achievements and the company’s readiness to capitalize on new partnerships and market expansions, particularly in the evolving crypto-backed lending space.
Bottom Line?
Butn’s FY25 results and funding boost set the stage for accelerated growth, but execution on new initiatives will be critical to sustaining momentum.
Questions in the middle?
- How will Butn’s expansion into APAC crypto-backed lending impact its risk profile and profitability?
- What are the expected returns and scale potential of the newly launched Retail Private Credit Fund?
- How effectively can Butn leverage its $100 million Northleaf facility to outpace competitors in SME funding?