How Will Credit Clear’s Two New Acquisitions Transform Its Offshore Growth?

Revenue Growth and Improved Profitability

Credit Clear Limited has reported solid financial progress for the half-year ended 31 December 2025, with revenue climbing 8% to $25 million compared to the prior corresponding period. This growth was driven by both existing client expansion and onboarding of new customers, reflecting strong demand for the company’s hybrid debt collection services that combine digital innovation with traditional methods.

Despite still reporting a net loss of $795,000, this represents a substantial 63% improvement from the $2.17 million loss recorded in the first half of 2024. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose to $2 million, nearly doubling from $1.1 million, signalling enhanced operational efficiency and tighter cost control.

Strategic Acquisitions to Accelerate Offshore Expansion

Following the reporting period, Credit Clear completed two significant acquisitions aimed at expanding its offshore footprint and technology capabilities. On 1 January 2026, the company acquired 100% of ARC Europe Ltd, a move expected to unlock operational synergies and cross-selling opportunities across European markets. The purchase consideration included $8.4 million in cash, $2.2 million in shares, and an earn-out contingent on ARC’s future EBITDA growth.

Later, on 31 January 2026, Credit Clear acquired Illion Digital Tech Solutions Holding Limited, a firm specialising in automated voice call technology. This acquisition complements Credit Clear’s AI-driven digital engagement tools and opens access to Illion’s blue-chip client base, enhancing the company’s end-to-end debt resolution platform.

Capital Raises Fuel Growth Ambitions

To finance these acquisitions and support ongoing growth, Credit Clear completed a $12.75 million capital raise in October 2025, followed by an additional $8 million raise in January 2026. The latter was notably subscribed by Chairman Paul Dwyer, underscoring strong insider confidence in the company’s strategic direction. These capital injections have bolstered the company’s balance sheet, increasing net tangible assets per share from $0.03 to $0.07 over the year.

The company continues to invest in its digital collection platform and legal services, aiming to deliver superior client outcomes through a hybrid approach that leverages technology and traditional collection expertise. Management remains focused on integrating the new acquisitions and realising anticipated growth and efficiency benefits.

Outlook and Market Position

Credit Clear’s improved financial performance and strategic acquisitions position it well to capitalize on growing demand for sophisticated debt resolution solutions. The company’s expanding offshore presence and enhanced technology stack could provide a competitive edge in a fragmented market. However, the final valuation of goodwill and contingent consideration related to the acquisitions will be closely watched by investors as these factors will impact future earnings and balance sheet strength.