Wisr has reported a robust start to FY26, with loan originations soaring 90% year-on-year and a 15% expansion in its loan book, supported by improved credit quality and a solid capital position.
- Loan originations jump 90% to $146.8 million in Q1 FY26
- Total loan book grows 15% to $868 million
- Revenue rises 11% to $25 million with stable portfolio yield
- Net losses and 90+ day arrears decline, reflecting credit improvements
- Fifth ABS transaction of $250 million executed to fund growth
Strong Momentum in Loan Growth
Wisr has kicked off FY26 with impressive momentum, reporting a 90% increase in loan originations to $146.8 million for the quarter ended September 2025. This surge marks the sixth consecutive quarter of growth, underscoring the company’s ability to scale its lending operations effectively. The total loan book expanded by 15% year-on-year to $868 million, driven by a 13% rise in personal loans and a 20% increase in secured vehicle loans.
Revenue and Yield Stability Amid Growth
Revenue climbed 11% to $25 million, reflecting the expanding loan portfolio. Notably, the portfolio yield remained stable at 11.14%, supported by disciplined pricing strategies despite a higher proportion of secured vehicle loans and an improved credit mix. However, the net interest margin (NIM) experienced a modest decline to 5.26%, primarily due to temporary higher undrawn costs from the recent commencement of a new warehouse facility, which is expected to normalize as utilisation increases.
Improved Credit Quality and Risk Metrics
Wisr’s credit quality continues to strengthen, with the average credit score rising to 807, the fifth consecutive quarterly improvement. This enhanced credit profile is reflected in a reduction in net losses to 1.63% and a decrease in 90+ day arrears to 1.14%, signaling effective arrears management and risk controls. These improvements provide reassurance to investors about the quality and resilience of Wisr’s loan book amid ongoing macroeconomic uncertainties.
Robust Funding and Capital Position
The company’s funding strategy remains robust, with the successful execution of its fifth asset-backed securities (ABS) transaction, the $250 million Wisr Freedom Trust 2025-1, which closed in October 2025. This transaction, rated AAA by Moody’s, offers a significantly lower cost of funds compared to previous facilities. Wisr also maintains strong liquidity with $15.3 million in unrestricted cash and $15 million undrawn on its corporate facility, positioning it well to support continued loan book growth.
Outlook and Strategic Focus
Wisr has reaffirmed its FY26 guidance, targeting over 40% growth in loan originations and 15% revenue growth, alongside a 29% improvement in its cost-to-income ratio. The company’s focus on automation, including AI-powered loan approvals and instant settlements via the New Payments Platform, underpins its scalable business model. As major banks retreat from certain lending markets, Wisr is well placed to capture market share and continue its trajectory of growth and profitability.
Bottom Line?
Wisr’s strong Q1 performance and solid capital base set the stage for sustained growth, but investors will watch closely for margin normalization and competitive pressures ahead.
Questions in the middle?
- How quickly will the net interest margin recover as new warehouse utilisation increases?
- What impact will rising competition in personal and secured vehicle lending have on Wisr’s pricing power?
- Can Wisr maintain its credit quality gains amid broader economic uncertainties?