Can MoneyMe Sustain Momentum While Navigating Rising Funding Costs?

Robust Growth and Improved Financials

MoneyMe Limited (ASX: MME) has delivered a solid first half for fiscal 2026, reporting a 17.2% increase in gross revenue to $117.2 million and a significantly reduced net loss after tax of $21.9 million, improving 43.7% compared to the prior corresponding period. This performance reflects the company’s successful execution of its growth strategy, with the loan book expanding to $1.75 billion, driven by strong originations in vehicle finance and personal loans.

Despite remaining in a loss position, MoneyMe’s financials show clear momentum. The company’s focus on higher credit quality and secured lending has contributed to a reduction in net credit losses to 2.9%, alongside improved arrears and rising average customer credit scores. These credit improvements underpin a stronger risk-adjusted net interest margin, positioning the business for sustainable growth.

Strategic Funding Enhancements

MoneyMe has significantly bolstered its funding platform during the period, completing a $455.4 million asset-backed securitisation (ABS) of its Autopay vehicle finance portfolio and establishing a new $300 million credit card warehouse facility. These transactions not only expand the company’s funding capacity but also improve funding efficiency and capital structure, providing a robust runway to support continued loan book growth and product diversification.

The company’s diversified funding mix now includes five warehouse facilities, four ABS programs, a managed investment trust, and a corporate facility, collectively offering substantial liquidity and covenant headroom. This funding strength is critical as MoneyMe prepares to launch its new credit card product in the second half of 2026, alongside a strategic partnership with Luxury Escapes to issue co-branded credit cards in Australia.

Technology and ESG as Growth Pillars

Technology remains a core competitive advantage for MoneyMe. The company continues to invest in its proprietary Horizon platform and AI capabilities, enhancing credit decisioning, customer service, and operational efficiency. AI-driven automation is reducing manual tasks and improving customer interactions, contributing to a Net Promoter Score of 72, well above major banks.

As a Certified B Corporation, MoneyMe integrates environmental, social, and governance (ESG) considerations into its business model. The company is progressing its sustainability reporting to align with Australian standards and maintains low greenhouse gas emissions. Employee engagement and community support initiatives further reinforce MoneyMe’s commitment to responsible growth.

Outlook and Market Positioning

Looking ahead, MoneyMe anticipates continued loan book growth, sustained credit performance, and improving funding economics. The company’s disciplined approach to scaling, combined with enhanced operating leverage and product innovation, positions it well to transition toward profitability. The upcoming credit card launch and expanded product suite are expected to diversify revenue streams and increase customer lifetime value.

MoneyMe’s management and board express confidence in the company’s trajectory, highlighting strong governance, risk management, and capital efficiency as foundational to its long-term success in the competitive Australian consumer finance market.