Butn’s $1.9M Loss Masks Growth Amid One-Off Funding Costs
Butn Limited has reported its fifth consecutive half-year of revenue growth, underpinned by a $100 million senior debt facility and expanding platform originations. Despite a statutory loss, the company’s operational momentum and strategic initiatives signal robust growth prospects.
- Revenue up 15% to $8.2 million in 1H26
- Platform originations surge 38% to $113.9 million
- New $100 million senior debt facility strengthens funding
- Statutory net loss of $1.9 million includes one-off costs
- Board enhanced with appointment of Stanley Gordon
Strong Revenue Growth and Platform Expansion
Butn Limited (ASX: BTN) has delivered a solid first half for the 2026 financial year, reporting record revenue of $8.2 million, a 15% increase compared to the same period last year. This marks the company’s fifth consecutive half-year of revenue growth, reflecting steady demand for its SME cashflow funding solutions. Platform originations, a key growth driver, jumped 38% to $113.9 million, now accounting for over 40% of total monthly originations, highlighting the success of Butn’s strategic shift towards higher-margin platform business.
Financial Performance and One-Off Costs
Despite the encouraging top-line growth, Butn reported a statutory net loss after tax of $1.9 million for 1H26. This loss includes approximately $0.4 million in one-off legal and advisory expenses related to the establishment of a new $100 million senior debt facility with Northleaf Capital Partners. When excluding these costs, the company achieved a normalised net operating cash flow of $0.1 million and a normalised EBITDA of $3.9 million, signalling underlying operational strength and improving cash generation as origination volumes scale.
Capital Structure and Funding Strength
Butn’s funding position was significantly bolstered in July 2025 with the successful refinancing of its corporate note programs through a $100 million senior debt facility provided by Northleaf Capital Partners, a prominent Canadian institutional investor. As of the reporting date, $77 million of this facility had been drawn, providing the company with extended funding maturities and scalable capital to support its growth ambitions. Additionally, Butn completed the second tranche of a $10 million equity raise, securing approximately $3 million to further strengthen its balance sheet and support ongoing growth initiatives.
Governance and Strategic Outlook
Governance enhancements were also a feature of the half, with the appointment of Stanley Gordon as an Independent Non-Executive Director, bringing valuable SME and strategic business development expertise. This appointment follows the planned retirement of Walter Rapoport and ensures a board majority of independent directors, while Co-founder and Co-CEO Rael Ross continues to lead the company’s strategic and operational efforts.
Looking Ahead: Growth Initiatives and Market Expansion
Butn is actively pursuing both organic and inorganic growth opportunities, with ongoing projects including the launch of the retail private credit fund Moneybox and entry into the APAC crypto-backed lending market. These initiatives are expected to become fully operational later in FY26, potentially opening new revenue streams and expanding Butn’s market footprint. Management remains focused on disciplined cost control, platform scalability, and capital efficiency to drive profitability and support higher origination volumes in the second half of the year and beyond.
Bottom Line?
Butn’s blend of record growth, strategic funding, and new market ventures sets the stage for a pivotal second half of FY26.
Questions in the middle?
- How will the new $100 million debt facility impact Butn’s long-term profitability?
- What is the expected timeline and scale for revenue from the Moneybox and APAC crypto lending initiatives?
- Can Butn maintain its low bad debt levels amid rapid origination growth?
