Beforepay Posts 43% Revenue Growth and Secures $100m Credit Facility in Q4 FY26

Record Margins and Profitability Boost

Beforepay Group Limited (ASX:B4P) closed FY26 on a high note, reporting a record quarterly net transaction margin (NTM) of $9.2 million, a 26% increase year-on-year. The company’s net profit before tax (NPBT) jumped 566% from the previous quarter to $2.4 million, marking a 68% rise compared to the prior year. This performance was driven by a 43% year-on-year revenue climb to $14.8 million, reflecting higher advance volumes and the rollout of interest charges on Pay Advances.

Growth in Advances and Personal Loans

Quarterly advances hit $255 million, up 22% from Q4 FY25, underpinned by a 16% increase in average advance size to $454. Personal Loans showed particularly strong momentum, with advances soaring 47% from the previous quarter to $7.2 million. This growth was supported by customers embracing higher loan limits and extended 12-month loan terms, up from six months earlier. The company substantially completed its transition to charging interest on Pay Advances, with interest income climbing from $0.1 million in April to $0.8 million in June, suggesting a full-year run rate of around $12.5 million in interest income based on FY26 volumes.

Operating Efficiency and User Metrics

Operating expenses fell 13% quarter-on-quarter to $5.9 million, aided by one-off reductions in employee costs and digital marketing spend. Active users increased 2% to 276,544, while the average customer acquisition cost dropped 16% to $53. Despite the growth, net defaults rose to 1.5% from 0.8% a year earlier, attributed to larger average advances, inclusion of Personal Loans, and a low baseline in the prior period. The company’s provisioning methodology recognises expected credit losses for Personal Loans upfront, adding a layer of caution to credit risk management.

Balance Sheet Strength and New Credit Facility

Beforepay maintained a solid balance sheet with $12.9 million in total cash and equity of $48.6 million at quarter-end. The company drew an additional $5 million from its debt facility to support the growing Personal Loan book. Most notably, on 28 July 2026, Beforepay secured a new $100 million senior secured asset-backed revolving credit facility with Australian Commercial Mortgage Corporation Pty Ltd, a subsidiary of Balmain NB Corporation Limited. This new facility offers materially lower funding costs, 3 to 4 percentage points less than the previous arrangement, and is expected to reduce annual funding expenses by over $1 million, improving capital efficiency as the company scales.

Innovations in Credit Underwriting

On the technology front, Carrington Labs, Beforepay’s enterprise arm, launched Cashflow Score as a native app on the Snowflake Marketplace. This innovation enables lenders to integrate cash flow underwriting directly within their Snowflake environments, potentially enhancing credit risk assessment and lending performance.