QuickFee Faces US Finance Volume Challenges Despite Strong Margins and Capital Return
QuickFee Limited reports flat Q2 FY26 revenue with a 4% rise in H1, completes a significant capital return, and sets a positive outlook with new US reseller partnerships.
- Q2 FY26 revenue steady at A$4.2 million, H1 revenue up 4% on a normalised basis
- AU Finance revenue grows 7%, US Finance revenue declines 14%
- Completed A$28.5 million capital return following US Pay Now business sale
- Core operations deliver strong 15% net interest margin with minimal capex
- Announced dividend policy targeting minimum 1 cent per share annually
Steady Revenue Amid Strategic Shift
QuickFee Limited (ASX, QFE) has reported a flat revenue performance for the second quarter of fiscal 2026, with quarterly revenue holding steady at A$4.2 million. This figure aligns with the prior corresponding period when adjusted to exclude the recently divested US Pay Now business. For the first half of FY26, the company recorded a 4% increase in normalised revenue, reflecting resilience in its core operations despite the sale of a significant business segment.
Divergent Performance Across Regions
The Australian Finance division showed encouraging growth, with revenue up 7% to A$2.9 million, driven by increased loan book yields and expansion in legal disbursement funding. Conversely, the US Finance segment experienced a 14% revenue decline to US$0.6 million, impacted by reduced transaction volumes and a strategic pause on new loan originations. However, QuickFee has established a reseller agreement with Aiwyn, the purchaser of its US Pay Now business, aiming to embed its finance product into Aiwyn’s offerings and tap into a substantial client base of CPA firms.
Capital Management and Shareholder Returns
In a notable capital management move, QuickFee completed a 7.5 cents per share capital return, distributing approximately A$28.5 million to shareholders. This followed the sale of the US Pay Now business for A$40 million, which is expected to generate a profit of around A$35.5 million. The company also announced a dividend policy targeting a minimum annual cash distribution of 1 cent per share, split evenly between interim and final payments for FY26, signaling a commitment to returning value to investors.
Strong Margins and Operational Efficiency
QuickFee’s core operations continue to deliver an attractive net interest margin of 15%, up from 13% in early 2024, underscoring the robustness of its B2B fee-funding model servicing accounting and legal professionals. The company benefits from minimal product development expenses and capital expenditure requirements, enhancing profitability and scalability, particularly in the US market where operational costs have been streamlined post-divestment.
Outlook and Growth Prospects
Looking ahead, QuickFee expects FY26 earnings before tax, depreciation, and amortisation (EBTDA) to range between A$3.75 million and A$4.25 million, excluding the one-off profit from the US Pay Now sale. The company is optimistic about growth opportunities through its reseller partnership with Aiwyn in the US and anticipates leveraging its strong balance sheet and undrawn credit facilities to support loan book expansion. CEO Bruce Coombes highlighted confidence in the scalable business model and the potential to accelerate growth in the US finance segment.
Bottom Line?
QuickFee’s disciplined capital return and strategic US partnerships set the stage for measured growth amid steady core performance.
Questions in the middle?
- How will QuickFee’s US Finance volumes recover following the decline and loan origination pause?
- What timing and quantum will QuickFee’s inaugural dividends take under the new policy?
- Are there further inorganic growth opportunities on the horizon following the US Pay Now sale?
