Credit Clear Limited posted a 28% rise in FY26 revenue to $60 million, boosted by UK acquisitions and organic growth, while defending legal action by the ACCC.
- 28% revenue increase to $60 million in FY26
- Underlying EBITDA up 41% to $10.5 million
- UK acquisitions of ARC Europe and DTS integrated successfully
- ACCC Federal Court proceedings against subsidiaries underway
- FY27 guidance targets $73–77 million revenue and $12–14 million EBITDA
Strong Revenue and Earnings Growth Fueled by Acquisitions and Digital Expansion
Credit Clear Limited (ASX:CCR) delivered robust financial results for the year ended 30 June 2026, with revenue climbing 28% to $60 million. This growth was a blend of 9% organic expansion and $9.1 million from recent acquisitions, notably UK-based ARC Europe and SaaS provider Digital Tech Solutions (DTS). On a pro-forma basis, including a full year of these acquisitions, revenue would have reached $70 million.
Underlying EBITDA surged 41% to $10.5 million, with margins improving to 17.5% from 15.9% a year earlier. This margin expansion reflects a deliberate shift towards higher-margin digital collections, supported by AI-driven tools and operational efficiencies such as selective off-shoring. Underlying NPATA rose 65% to $6.7 million, lifting earnings per share by 45% to 1.4 cents.
UK Acquisitions Expand Market Reach and Technology Offering
The acquisitions completed in early 2026 mark Credit Clear’s strategic entry into the UK and European markets, estimated to be four times the size of Australia’s. ARC Europe, a traditional debt collection agency established in 2001, and DTS, a global SaaS digital collections and voice technology provider, collectively broaden Credit Clear’s product suite and client base.
Initial financial performance from these acquisitions has surpassed expectations, with combined annualised revenue of $19.1 million and EBITDA margins improving notably. The integration process is underway, focusing on system compatibility and operational synergies to unlock scalability and cost efficiencies.
Healthy Balance Sheet Supports Growth and Capital Management
Credit Clear maintained a strong financial position with net cash of $16.9 million at year-end, supported by a $20.75 million institutional placement in October 2025 to fund acquisitions. The group also secured a new bank debt facility with ANZ Bank, balancing funding sources prudently.
The company implemented a share buy-back program, purchasing $7.7 million in shares during the second half of FY26, with further buy-back capacity remaining. This disciplined capital management underpins flexibility to pursue future growth opportunities.
Ongoing ACCC Legal Proceedings Present Uncertain Risks
Credit Clear’s wholly owned subsidiaries ARMA Group Holdings and Force Legal are defending Federal Court proceedings initiated by the Australian Competition and Consumer Commission (ACCC). The ACCC alleges contraventions of the Australian Consumer Law related to debt collection communications between February 2022 and September 2025.
The company denies all allegations and is actively contesting the case, with procedural milestones set through October 2026. While the potential penalties could be material, no provision has been recognised given the inherent uncertainty. Credit Clear states the proceedings have not materially impacted financial results to date.
Leadership Transition and FY27 Outlook
Joshua Reid joined as Executive Director in July 2026 and will assume interim CEO duties from 1 September, with current CEO Andrew Smith transitioning to a non-executive director post-Annual General Meeting. Reid brings extensive experience in banking and acquisitions, signaling continuity in Credit Clear’s growth strategy.
Looking ahead, Credit Clear expects FY27 revenue between $73 million and $77 million, and underlying EBITDA of $12 million to $14 million, anticipating a second-half earnings skew consistent with prior years. This guidance assumes no material disruption from the ACCC proceedings.
Bottom Line?
Credit Clear’s FY26 results highlight a successful expansion phase backed by technology and acquisitions, but the ACCC legal challenge remains a wildcard for investors to monitor.
Questions in the middle?
- How will the ACCC proceedings ultimately affect Credit Clear’s operational and financial performance?
- What synergies and cost savings will emerge from integrating ARC Europe and DTS over the next 12 months?
- How will Joshua Reid’s leadership influence strategic priorities amid ongoing legal and market challenges?