Earlypay Ltd reported a modest statutory loss for the half-year ended December 2025, while adjusted profits remained positive amid challenging SME conditions. The company increased its dividend and continued an aggressive share buy-back program.
- Statutory net loss of $69,000 versus prior profit of $1.25 million
- Adjusted net profit down 31.5% to $1.8 million
- Revenue stable at $26.2 million
- Credit impairment expenses surged, especially in equipment finance
- Final dividend increased to 0.65 cents per share
Earlypay’s Financial Snapshot
Earlypay Ltd, a specialist financier serving Australian small to medium enterprises (SMEs), has released its half-year results for the period ending 31 December 2025. The company reported a statutory net loss after tax of $69,000, a sharp reversal from a $1.25 million profit in the same period last year. However, when adjusting for significant non-cash and one-off items, Earlypay’s core earnings remained positive at $1.8 million, albeit down 31.5% from $2.6 million previously.
Revenue held steady at $26.2 million, reflecting resilience in Earlypay’s invoice and equipment finance operations despite a challenging economic backdrop for SMEs.
Rising Credit Impairments and Operating Costs
The company’s credit impairment expenses increased markedly, rising from $134,000 to over $1 million in the half-year. This was particularly pronounced in the equipment finance segment, where credit losses more than doubled. Operating expenses also climbed, driven by higher personnel costs and investments in loan management systems.
Earlypay’s invoice finance division generated net income of $13.3 million, slightly down from $13.5 million, while equipment finance net income grew to $4.8 million from $3.6 million. The company’s focus on smaller, diverse SMEs; often underserved by traditional banks; positions it well to meet ongoing demand for flexible financing solutions amid economic uncertainty.
Balance Sheet and Capital Management
Earlypay’s balance sheet remains robust, with net assets of $70.1 million and cash reserves of $35.9 million. Net tangible assets per share increased slightly to 15.04 cents. Borrowings rose modestly to $244.3 million, reflecting ongoing funding for receivables.
The Group renewed its securitised invoice finance warehouse facility in February 2026, extending availability to March 2027, ensuring continued liquidity for its lending operations.
Shareholder Returns and Outlook
In a sign of confidence, Earlypay’s Board declared a final dividend of 0.65 cents per share, more than quadrupling the prior period’s 0.15 cents. The company also continued its on-market share buy-back program, repurchasing over 11 million shares during the half-year, reflecting a commitment to returning capital to shareholders.
While the statutory loss highlights near-term pressures, Earlypay’s adjusted profit and strong capital position suggest the business is navigating the SME lending landscape with resilience. The company’s strategic focus on flexible invoice and equipment finance products may help it capture opportunities as economic conditions evolve.
Bottom Line?
Earlypay’s results reveal resilience amid SME sector challenges, but rising credit costs warrant close monitoring.
Questions in the middle?
- How will Earlypay manage credit risk if SME insolvencies continue to rise?
- What impact will the share buy-back program have on future earnings per share?
- Can the company sustain dividend growth given the recent statutory loss?