How Is Credit Corp Driving 22% Growth in US Debt Collections?

Operational Momentum Drives FY26 Outlook

Credit Corp Group has provided an encouraging update at its 2025 Annual General Meeting, confirming its FY26 financial guidance and underscoring continued momentum across its core business segments. The company’s performance is being propelled by operational excellence in both its US debt buying operations and Australian/New Zealand lending and debt buying activities.

In the US, Credit Corp reported a 22% increase in collections compared to the prior year, supported by a $145 million investment pipeline and a full-year ledger investment guidance of $200 to $230 million. This reflects a strategic emphasis on disciplined purchasing and enhanced productivity, with collections and payment arrangements steadily growing.

Steady Growth in Australian and New Zealand Lending

The Australian and New Zealand lending segment also showed positive signs, with a record Q1 lending volume up 3% year-on-year. The company has refreshed its marketing efforts, driving strong customer acquisition while maintaining prudent underwriting standards and regulatory compliance. Lending volumes are growing despite challenges such as elevated used car prices, and a strategic review is underway following the acquisition of a licensed lending entity, positioning Credit Corp for further expansion within FY26.

Meanwhile, the Australian/New Zealand debt buying segment remains stable, with collections within 7% of the prior year and an investment pipeline on track to exceed $80 million for the full year. The company continues to leverage its extensive database and pricing accuracy to maintain high asset turnover and low collection costs.

Financial Discipline and Capacity for Opportunistic Investment

Credit Corp’s balance sheet remains robust, with low gearing levels and ample debt headroom to support opportunistic investments. Net borrowings as a percentage of financial assets remain conservative, allowing the company to pursue growth initiatives without compromising financial stability. The group’s long-term target return on equity remains between 16% and 18%, reflecting a disciplined approach to capital management.

FY26 guidance remains intact, with ledger investment expected between $280 million and $330 million, gross lending between $350 million and $390 million, and net profit after tax forecasted at $100 million to $110 million. This implies an earnings per share range of 147 to 162 cents, signaling a 6% to 17% growth over FY25.

Looking Ahead

Credit Corp’s update paints a picture of a company well-positioned to capitalize on its market segments through operational discipline, technological leverage, and strategic expansion. While some adjustments to the investment pipeline have been made due to client volume fluctuations, the overall outlook remains positive. Investors will be watching closely how the strategic lending initiatives and regulatory approvals unfold, as these could be pivotal for the company’s next phase of growth.