Beforepay Posts $6.7M Net Profit, Advances Up 14% in FY25
Beforepay Group Limited reported a robust 74% jump in net profit for FY25, driven by stronger advance volumes, improved credit quality, and expanding user base. Its AI-powered lending division, Carrington Labs, accelerated growth with new clients and strategic partnerships.
- Net profit after tax rises 74% to $6.7 million
- Net transaction margin up 29% to $25.1 million
- Active users grow 12% to 269,558 with 14% higher advance volumes
- Carrington Labs secures new US clients and strategic partnerships
- Debt repayment of $7.5 million improves funding efficiency
Strong Financial Performance
Beforepay Group Limited (ASX – B4P) has delivered an impressive financial performance for the full year ended 30 June 2025, reporting a 74% increase in net profit after tax to $6.7 million. This surge was underpinned by a 29% rise in net transaction margin to $25.1 million, reflecting both higher advance volumes and improved credit quality, with net defaults falling to 1.1% from 1.4% the previous year.
The company’s active user base expanded by 12% to 269,558, while advance volumes grew 14% to $807.4 million. These metrics indicate growing customer engagement and confidence in Beforepay’s lending platform, which continues to scale steadily.
Balance Sheet and Funding
Despite a decrease in total cash from $28.8 million to $19.2 million, this was primarily due to the strategic repayment of $7.5 million in debt during April 2025. Beforepay’s equity position strengthened to $39.3 million, signaling a solid financial foundation. The company also introduced a $7.5 million revolving sub-limit within its existing $55 million debt facility, enhancing its ability to manage funding costs efficiently.
Carrington Labs Accelerates Growth
A standout feature of the year was the rapid expansion of Carrington Labs, Beforepay’s AI-driven enterprise lending arm. The division secured new clients including Utah-based CCBank and US specialty lender Doc2Doc shortly after year-end. Additionally, Carrington Labs forged strategic partnerships with leading risk-decisioning platforms such as Oscilar, Taktile, LendAPI, and DigiFi, positioning it well to capitalize on growing demand for advanced credit risk solutions.
Product Expansion and Market Position
Beforepay also continued to grow its Personal Loan product, gradually increasing availability to existing users and scaling volumes. This diversification complements its core advance offerings and could provide additional revenue streams as the company deepens customer relationships.
Overall, Beforepay’s FY25 results reflect a company successfully balancing growth with credit discipline, while leveraging technology to expand its footprint in both consumer and enterprise lending markets.
Bottom Line?
Beforepay’s strong FY25 performance and Carrington Labs’ momentum set the stage for further growth, but investors will watch closely how the company manages funding and competitive pressures ahead.
Questions in the middle?
- How will Beforepay sustain credit quality amid rising advance volumes?
- What impact will Carrington Labs’ new partnerships have on revenue growth?
- Will the company pursue further debt reduction or reinvest cash into expansion?
