QuickFee Posts A$39.3 Million Profit After US Pay Now Sale

US Pay Now Sale Delivers Windfall and Simplifies Business

QuickFee Limited (ASX:QFE) reported a dramatic turnaround in FY26, posting a net profit after tax of A$39.3 million compared to a loss of A$4.3 million the previous year. The swing was primarily driven by a A$35.6 million profit on the sale of its US Pay Now products (ACH, Card and Connect) to Aiwyn, Inc. in September 2025, for US$26.35 million, representing a 5x revenue multiple on FY25 figures.

This divestment marked a strategic pivot, allowing QuickFee to streamline operations and focus on its core fee funding and finance products in Australia and the US. The sale resulted in a 45% reduction in operating expenses, boosting EBITDA before significant items by 58% to A$3.8 million.

Stable Core Revenue and Profitability Gains

Excluding the divested US Pay Now business, QuickFee’s underlying revenue remained stable at A$16.8 million, down just 1% on a normalised basis. Australian operations grew 10% to A$13.6 million, driven by an 11% increase in loan originations and a robust net interest margin (NIM) of 15.3%, up steadily over time. However, US revenue fell 63% to A$4.8 million, reflecting the sale and weaker finance volumes.

QuickFee’s loan book expanded 12% to A$65.9 million, supported by an upsized Australian credit facility from A$45 million to A$60 million, providing additional headroom for growth in fee funding and legal disbursement funding. The US loan book stood at US$6.6 million as at 30 June 2026, with QuickFee retaining a lean team focused on growing the finance product through a reseller agreement with Aiwyn.

Shareholder Returns and Dividend Policy Initiated

Following the US Pay Now sale, QuickFee returned A$28.5 million to shareholders via a 7.5 cents per share capital reduction in December 2025. The company declared its first dividends in recent years, paying an interim dividend of 0.5 cents per share in March 2026 and proposing a final unfranked dividend of 0.5 cents per share payable in September 2026. The board also flagged a potential special dividend of up to 1 cent per share later in 2026, contingent on the release of escrowed sale funds.

The new capital management policy targets minimum annual dividends of 1 cent per share, reflecting QuickFee’s transition to a profitable and cash-generative business model.

Leadership and Strategic Outlook

Bruce Coombes, QuickFee’s founder, returned as CEO in October 2025, taking executive charge of both Australian and US finance operations. The simplified business model now requires minimal ongoing product development and capital expenditure, enhancing scalability and profitability.

Looking ahead to FY27, QuickFee expects continued strong momentum in Australia, particularly in legal disbursement funding, and anticipates solid growth in the US following the planned integration of its finance solution into the Aiwyn payment platform in December 2026. The company forecasts FY27 EBITDA between A$4.5 million and A$5.5 million, signalling confidence in its growth trajectory.

Financial Discipline and Risk Management

QuickFee’s balance sheet strengthened with net assets rising to A$14.3 million, supported by cash and equivalents of A$8.3 million at year-end. The company maintained compliance with all debt covenants and prudently manages credit risk through firm guarantees and credit policies, with historically low bad debt write-offs of 0.01% of lending.

Regulatory changes, such as the requirement for Buy Now Pay Later (BNPL) operators in Australia to hold a credit licence, led QuickFee to cease new BNPL originations in December 2025 due to onerous compliance demands, running down the existing loan book by end-2026.

QuickFee’s risk framework also addresses competition, financing, data security, and foreign exchange volatility, aiming to sustain its market leadership in professional services fee funding.