MoneyMe Turns Corner with $24m Operating Cash Profit and 28% Loan Growth

Strong Growth and Profitability Turnaround

MoneyMe Limited (ASX, MME) has delivered a compelling FY25 performance, marked by a 28% increase in its loan book to $1.6 billion and an operating cash profit of $24 million, a significant reversal from prior years’ losses. This growth was underpinned by a strategic shift towards higher credit quality and secured lending, which has also contributed to a reduction in net credit losses to 3.4%.

The company’s focus on secured assets paid off, with these now representing 62% of the loan book, up from 55% in FY24. This shift has helped stabilize revenue streams and improve funding costs, despite a slight dip in gross revenue to $208 million, down 3% year-on-year, and a net interest margin contraction to 8%.

Innovation and Technology Leadership

MoneyMe’s proprietary technology platform, Horizon, combined with its AI engine AIDEN®, has been a key driver of operational efficiency and customer satisfaction. The deployment of generative AI mid-year enhanced customer interactions, boosting satisfaction scores by up to 30%. These technological advances have accelerated credit decisioning and reduced manual workloads, positioning MoneyMe well ahead of traditional banks in digital lending experiences.

The fintech’s ability to settle loans within minutes, seven days a week, particularly in its flagship Autopay vehicle loan product, has helped it capture market share in the competitive auto finance sector. Autopay’s loan book grew 47% to $912 million, supported by an expanded distribution network of over 4,200 dealers and brokers.

Funding and Capital Structure Strengthened

MoneyMe has bolstered its funding capacity to $2.1 billion, up 20% from FY24, through a diversified program including asset-backed securitisations and a new $125 million corporate facility secured on improved terms. This robust capital structure provides ample runway for growth and cost efficiencies, with funding cost reductions realized in the second half of FY25.

Despite a statutory net loss after tax of $67 million, largely due to upfront credit loss provisions and one-off accounting adjustments from system consolidations, the company’s normalized NPAT loss narrowed to $16 million. Management highlights that the strong operating cash flows and funding improvements underpin a positive outlook for profitability as scale and credit quality continue to improve.

Strategic Outlook and ESG Commitment

Looking ahead, MoneyMe plans to launch a new credit card product in FY26, leveraging its recent Mastercard principal issuer status and a technology partnership with Episode Six to accelerate innovation. The company also aims to expand direct-to-consumer distribution channels and continue growing its personal loan portfolio alongside secured lending.

On the sustainability front, MoneyMe maintains its B Corp certification with a strong impact score of 91.2, reflecting its commitment to social and environmental governance. Initiatives include enhanced data security, employee engagement, charitable partnerships, and progress towards science-based emissions targets.

Overall, MoneyMe’s FY25 results demonstrate a fintech lender successfully navigating a challenging credit environment through technology, disciplined credit management, and diversified funding, positioning it well for accelerated growth in the coming years.