How Rent.com.au’s RentBond® Is Doubling Recurring Revenues and Driving Growth
Rent.com.au reports a surge in recurring revenues driven by strong RentBond® loan growth, doubling monthly revenue run rates and advancing towards profitability.
- Over $2 million in RentBond® loans funded since launch
- Monthly loan funding run rate exceeds $1 million
- Recurring revenue up 106% year-on-year
- Drawn $4.1 million from $10 million Eldium funding facility
- Recurring revenue now 47% of total group revenue, targeting 70% by FY26
Strong Growth in RentBond® Loans
Rent.com.au Limited (ASX – RNT) has announced a significant acceleration in the uptake of its RentBond® product, a move-now-pay-later loan designed to help renters cover bond payments, rent in advance, and moving expenses. Since its launch, the company has funded over $2 million in RentBond® loans, with the monthly funding run rate now exceeding $1 million. This rapid growth signals strong market demand and validates the product’s appeal to Australia's 8 million renters.
Funding Facility Drawdown Supports Expansion
To support this momentum, Rent.com.au has drawn a third tranche of $1.5 million from its $10 million funding facility with the Eldium Income Fund, bringing total drawn funds to $4.1 million. This capital injection is expected to be received in early November and will be reinvested into new RentBond® loans and working capital, underpinning the company’s growth strategy.
Recurring Revenue and Business Model Validation
The company reports that new RentBond® loans generate approximately six times the lifetime revenue compared to its previous model, highlighting the scalability and profitability of the product. Recurring revenue streams, including RentBond®, RentPay, and Core Logic data subscriptions, have surged by 106% compared to the September 2024 quarter. Recurring revenue now accounts for 47% of total group revenue, with a target to exceed 70% by the end of FY26.
Path to Profitability and Cashflow Improvement
CEO Jan Ferreira expressed confidence in the company’s trajectory, noting that RentBond® growth is exceeding expectations with low arrears rates and improving cash generation. Current cash receipts from RentBond® customers stand at approximately $200,000 per month, providing a steady cashflow that supports further loan funding and operational needs. The company aims to double its monthly revenue and achieve group profitability in the near term.
Outlook and Market Position
With its integrated platform combining rental search, financial tools, and services, Rent.com.au is well-positioned to capitalize on the growing renter market in Australia. The early success of RentBond®, alongside a 27% year-over-year revenue increase, suggests sustainable long-term growth and value creation for shareholders. Investors will be watching closely for the upcoming Quarterly Activities Report and Appendix 4C, due on 30 October 2025, for further financial details.
Bottom Line?
Rent.com.au’s RentBond® surge sets the stage for a pivotal shift toward sustained profitability and recurring revenue dominance.
Questions in the middle?
- How will Rent.com.au manage credit risk and arrears as RentBond® volumes increase?
- What impact will further funding facility draws have on the company’s balance sheet and cost of capital?
- Can Rent.com.au maintain momentum in other recurring revenue streams like RentPay and data subscriptions?