Beforepay Group Delivers 43% Revenue Growth as Interest Rollout Enhances Margins

Beforepay Group (ASX: B4P) lifted June-quarter revenue 43% year-on-year to $14.8 million as higher advance volumes, Personal Loans growth and the progressive introduction of interest on Pay Advances strengthened earnings.

The group posted a record net transaction margin (NTM) of $9.2m and net profit before tax of $2.4m, up 26% and 68% respectively from a year earlier.

Quarterly advances increased 22% to $255.4m, while the average advance rose 16% to $454 and active users climbed 3% to 276,544.

The pricing transition was substantially complete by the end of June, positioning the 2027 financial year as the first full year in which interest applies to almost all Pay Advances.

Pricing Shift Improves Margins

Interest income from Pay Advances rose from $0.1m in April to $0.8m in June as the rollout progressed, with Beforepay estimating that full-year charges on 2026 financial year volumes would have generated about $12.5m.

Personal Loans advances grew 47% quarter-on-quarter to $7.2m as customers used higher limits and new 12-month loan terms, compared with the previous six-month duration.

“Together, these initiatives have strengthened our earnings profile and position Beforepay well as we enter FY27,” chief executive officer Jamie Twiss said.

NTM represented 3.60% of advances, up from 3.47% a year earlier and 3.27% in the previous quarter, while operating expenses decreased 13% quarter-on-quarter to $5.9m due partly to one-off reductions in employee costs and digital marketing.

Net defaults increased to 1.48% from 0.76% a year earlier, reflecting larger average advances, the inclusion of Personal Loans, and an unusually low prior-year comparison, with 12 months of expected credit losses for Personal Loans recognised upfront at origination.

Cash Position to Support Growth

Beforepay finished the quarter with total cash of $12.9m, comprising $7.4m at bank and $5.5m in funding and settlement accounts, while its equity position increased to $48.6m.

The group drew a further $5m from its existing debt facility during the quarter to support the expanding Personal Loan book and reported an operating cash outflow of $3.5m.

After quarter end, subsidiary Beforepay Finance entered a new $100m senior secured asset-backed revolving credit facility with Australian Commercial Mortgage Corporation as trustee for Australian AB Finance Trust, replacing the previous $55m arrangement.

The three-year facility has an initial committed limit of $40m and can increase to $100m by mutual agreement, with pricing about three to four percentage points lower and expected annual funding cost savings of more than $1m at an equivalent $40m drawn balance.

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