Butn’s $1.85M Loss Raises Questions on Profitability Recovery
Butn Limited reported a 15% increase in revenue for the half year ended December 2025 but posted a significant loss after tax of $1.85 million, marking a sharp reversal from profit in the prior period.
- Revenue increased 15% to $8.185 million
- Net loss after tax of $1.851 million, down 1002%
- No dividends declared for current or prior period
- Net tangible assets per share rose 25% to 3.17 cents
- No changes in controlled entities during the period
Revenue Growth Amid Profitability Challenges
Butn Limited, an Australian SME funder specialising in transactional funding, has revealed mixed results for the half year ended 31 December 2025. The company’s revenue rose 15% to $8.185 million compared to the same period last year, reflecting continued demand for its working capital solutions. However, this top-line growth was overshadowed by a significant swing to a net loss of $1.851 million, a stark contrast to the $0.205 million profit recorded in the prior corresponding period.
Navigating the Loss Despite Asset Growth
The loss after tax represents a 1002% decline, signalling operational or cost pressures that have eroded profitability. Despite this, Butn’s net tangible asset value per share improved by 25% to 3.17 cents, suggesting some strengthening in the company’s underlying asset base. The absence of dividends for the half year aligns with the company’s cautious stance amid these financial headwinds.
Stable Corporate Structure and Oversight
There were no changes in controlled entities during the period, indicating stability in Butn’s corporate structure. The financial statements for the period were reviewed by Hall Chadwick Melbourne, providing an independent assurance layer. CEO Rael Ross and the board have authorised the release of these results, with further commentary expected in the full financial statements and subsequent disclosures.
Looking Ahead: Questions on Strategy and Recovery
While Butn’s revenue growth is encouraging, the sizeable loss raises questions about cost management, credit risk, or investment in growth initiatives. Investors will be keen to understand the drivers behind the loss and the company’s plans to return to profitability. Given the company’s focus on SME transactional funding, market conditions and debtor credit quality will be critical factors to watch.
Bottom Line?
Butn’s revenue momentum is clear, but the path back to profit remains uncertain and closely watched.
Questions in the middle?
- What factors contributed most to the significant loss despite revenue growth?
- How does Butn plan to manage costs or risks to restore profitability?
- Will the company consider dividends once profitability returns?
