Beforepay Group Revenue Jumps 43% as Interest Rollout Boosts Margins

Beforepay Group lifted June-quarter revenue 43% year-on-year to $14.8 million, driven by higher advance volumes and Personal Loans growth. The group posted a record net transaction margin of $9.2 million and net profit before tax of $2.4 million, up 26% and 68% from a year earlier.

Quarterly advances increased 22% to $255.4 million. 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.

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

Personal Loans advances grew 47% quarter-on-quarter to $7.2 million, 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. Operating expenses decreased 13% quarter-on-quarter to $5.9 million, 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 and the inclusion of Personal Loans. The group recognized 12 months of expected credit losses for Personal Loans upfront at origination, which contributed to the increase.

Beforepay finished the quarter with total cash of $12.9 million, comprising $7.4 million at bank and $5.5 million in funding and settlement accounts. Its equity position increased to $48.6 million. The group drew a further $5 million from its existing debt facility during the quarter to support the expanding Personal Loan book and reported an operating cash outflow of $3.5 million.

After quarter end, subsidiary Beforepay Finance entered a new $100 million senior secured asset-backed revolving credit facility with Australian Commercial Mortgage Corporation as trustee for Australian AB Finance Trust, replacing the previous $55 million arrangement. The three-year facility has an initial committed limit of $40 million and can increase to $100 million by mutual agreement, with pricing about three to four percentage points lower and expected annual funding cost savings of more than $1 million at an equivalent $40 million drawn balance.

Carrington Labs also launched Cashflow Score as a Native App on the Snowflake Marketplace, enabling lenders to implement cash flow underwriting within their existing Snowflake environments.