Beforepay starts FY27 with record revenue and expanded funding capacity

Record revenue and Cash NPAT open FY27

Beforepay Group Limited (ASX:B4P) has started FY27 with its strongest quarterly revenue result, reporting A$16.5 million for the three months to 30 September 2026. Revenue rose 45% from the same quarter a year earlier, while Cash NPAT increased 58% to A$5.7 million. Statutory NPAT also climbed 40% to A$4.7 million, although the figures are unaudited and Cash NPAT is a non-IFRS measure.

Total advances reached a quarterly record of A$264.7 million, up 17% year-on-year and 4% from the previous quarter. The average advance rose 17% year-on-year to A$524, with Pay Advance accounting for A$257.7 million of the total. The company said the revenue increase was driven by the inclusion of interest on Pay Advance and larger average advances. The result builds on the previous quarter credit facility, which was described as reducing funding costs.

Credit losses rise as advance sizes increase

The growth has not been cost-free on the credit line. Net bad debts rose to 1.41% from 0.87% a year earlier and 0.90% in the June quarter. Pay Advance net bad debts increased to 1.40%, compared with 0.86% in Q1 FY26 and 0.75% in Q4 FY26. Beforepay said the increase formed part of its management of risk-adjusted revenue as average advance sizes grew, with revenue increasing faster than credit losses.

Personal Loans provided a more favourable headline, with advances of A$7 million and a net bad debt ratio of 1.59%, down from 6.10% in the previous quarter and 1.76% a year earlier. But the company attributed the unusually low quarterly figure to increased recoveries and a writeback of fourth-quarter provisions, and said the ratio is expected to normalise in future quarters. That makes the Personal Loans credit performance a useful metric to track rather than a clean run-rate assumption.

New facility leaves A$63.4 million undrawn

Beforepay ended the quarter with A$13.6 million in total cash, including A$6.4 million held at bank and A$7.2 million in funding and settlement accounts. Equity increased to A$54.1 million from A$48.9 million at the end of FY26. The balance sheet also now sits alongside a senior secured, asset-backed revolving facility with a total limit of A$100 million, of which A$36.6 million was drawn at 30 September, leaving A$63.4 million unused.

The facility has an initial committed limit of A$40 million and can increase to A$100 million by mutual agreement. It covers both Pay Advance and Personal Loans, and Beforepay said it was beginning to benefit from lower funding costs and additional capacity for Personal Loans growth. The quarterly cash-flow report nevertheless showed A$404,000 of net cash used in operating activities, while the business deployed A$264.7 million in advances to customers and received A$257.1 million in repayments.

Growth now meets a tougher credit test

The immediate investment question is less whether Beforepay can grow advances than whether the higher-volume model can preserve its improved profitability when credit outcomes normalise. The company’s first-quarter numbers are positive, but the rise in Pay Advance bad debts and the provision-related boost to Personal Loans results leave both sides of that equation visible in the same report.