QuickFee Reports A$4.0 Million Revenue in Q3 FY26 with 15.3% Net Interest Margin

Mixed Q3 Performance Highlights Australian Legal Funding Momentum

QuickFee Limited (ASX:QFE) posted A$4.0 million in revenue for Q3 FY26, marking a 9% decline on a normalised prior corresponding period, excluding the divested US Pay Now business. While the US finance segment continued to contract sharply, Australian operations showed robust growth, particularly in legal disbursement funding (DF), which now accounts for approximately 40% of the Australian loan book.

The Australian finance revenue climbed 12% year-on-year to A$2.9 million, buoyed by a 23% increase in DF total transaction value to A$2.7 million. This segment's expansion is underpinned by recent signings with major personal injury law firms, expected to generate around A$10 million in new DF originations over the next 12 months. This momentum is reflected in a strong start to Q4, with April 2026 transaction volumes already surpassing those of April 2025.

US Finance Declines Amid Strategic Shift and Reseller Partnership

The US finance business saw revenue fall 44% to US$0.5 million, with total transaction value down 39% to US$4.6 million. This decline follows a strong Q3 FY25 and the September 2025 sale of the US Pay Now business, which QuickFee exited to refocus on its core B2B lending model. The company has since established a reseller agreement with Aiwyn, the purchaser of the US Pay Now business, aiming to embed QuickFee’s finance product into Aiwyn’s payment solutions by mid-2026. While early signs show green shoots of growth in reseller volumes, the impact on US revenue remains to be seen.

Notably, QuickFee has reduced product development and capital expenditure in the US, improving operational scalability and profitability. However, US active finance firms and plan numbers continue to decline, down 17% and 15% respectively, highlighting ongoing challenges in the market.

Improved Margins and Strong Balance Sheet Support Earnings Outlook

QuickFee strengthened its net interest margin to 15.3% in Q3 FY26, reflecting the high-margin nature of its B2B fee-funding model across Australia and the US. The Australian loan book stood at A$46.9 million, with the US loan book at US$7.1 million. Available liquidity was solid at A$13.1 million, including unrestricted cash and readily available funds, alongside A$17.5 million in undrawn borrowing capacity to support future loan book growth.

The company confirmed FY26 EBTDA guidance of A$3.75 million to A$4.25 million, excluding any accounting profit from the US Pay Now sale. QuickFee also completed its maiden dividend payment of 0.5 cents per share in March 2026 and anticipates further dividends, including a special dividend later in the year linked to escrowed funds and free cash flow generation.

This update follows QuickFee’s earlier financial turnaround, which included a substantial profit from the US Pay Now sale and a capital return to shareholders, as detailed in their $36.45M profit surge earlier this year. The company’s strategic pivot to focus on core B2B lending with minimal capex requirements appears to be gaining traction, particularly in Australia.

Outlook Hinges on Australian Growth and US Reseller Execution

CEO Bruce Coombes emphasised QuickFee’s return to its core professional services funding model, highlighting confidence in organic growth prospects and openness to inorganic opportunities. The Australian legal funding segment’s strong pipeline and expanding loan book provide a solid foundation for FY27 growth. Meanwhile, the US market’s recovery depends heavily on the successful rollout of the Aiwyn reseller partnership and the ability to reverse recent declines in active finance firms.

Investors will be watching how QuickFee navigates the run-off of its BNPL loan book in Australia, expected to clear by December 2026, and how the US finance business capitalises on its new distribution model. The company’s ability to sustain and grow dividends amid these dynamics will also be a key focus.