Full Year 2026 Beforepay Group Ltd Earnings Call

August 24, 2026

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting.

Speaker #2: Welcome to the webinar for the financial year 2026 results. My name is James Lennon, and I help with the company's investor relations. Today, you'll be hearing from Beforepay's CEO, Jamie Twist, and CFO, Lavanya Parry.

James Lennon: The webinar for the financial year 2026 results. My name is James Lennon, and I help with the company's investor relations. Today, you will be hearing from Beforepay CEO, Jamie Twiss, and CFO, Laavanya Pari. The presentation will take about 15 minutes and will be followed by a Q&A session. If you would like to ask a question, please type your question into the Q&A box on your screen. I would now like to hand you over to Jamie. Please go ahead.

James Lennon: The webinar for the financial year 2026 results. My name is James Lennon, and I help with the company's Investor Relations. Today, you will be hearing from Beforepay CEO, Jamie Twiss, and CFO, Laavanya Pari. The presentation will take about 15 minutes and will be followed by a Q and A session. If you would like to ask a question, please type your question into the Q and A box on your screen. I would now like to hand you over to Jamie. Please go ahead.

Speaker #2: The presentation will take about 15 minutes, and we'll be followed by a Q&A session. If you'd like to ask a question, please type your question into the Q&A box on your screen.

Speaker #2: I would now like to hand you over to Jamie. Please, go ahead.

Speaker #3: Thank you, James, and good morning to everybody. Thank you all for joining us today. I'm delighted to be presenting our FY26 annual results. As James said, I'm Jamie Twist.

Jamie Twiss: Thank you, James, and good morning to everybody. Thank you all for joining us today. Delighted to be presenting our FY26 annual results. As James said, I am Jamie Twiss, I am the CEO of Beforepay Group, joined by Laavanya Pari, our Chief Financial Officer. We will run through the highlights of the results and then very happy to take your questions after that. I would like to start by acknowledging the traditional custodians of the land on which we meet, and I would like to pay my respects to Elders past, present, and emerging. We actually have quite a number of new names on the webinar with us today. First of all, welcome. We are delighted to have you here, and thank you for your interest in Beforepay Group.

Jamie Twiss: Thank you, James, and good morning to everybody. Thank you all for joining us today. Delighted to be presenting our FY 2026 annual results. As James said, I am Jamie Twiss, I am the CEO of Beforepay Group, joined by Laavanya Pari, our Chief Financial Officer. We will run through the highlights of the results and then very happy to take your questions after that. I would like to start by acknowledging the traditional custodians of the land on which we meet, and I would like to pay my respects to elders past, present, and emerging. We actually have quite a number of new names on the webinar with us today. First of all, welcome. We are delighted to have you here, and thank you for your interest in Beforepay Group.

Speaker #3: I'm the CEO of Beforepay Group, joined by Lavanya Parry, our Chief Financial Officer. We'll run through the highlights of the results, and then be very happy to take your questions after that.

Speaker #3: So I would like to start by acknowledging the Traditional Custodians of the land on which we meet, and I'd like to pay my respects to Elders past, present, and emerging.

Speaker #3: And then, we actually have quite a number of new names on the webinar with us today. So, first of all, welcome. We're delighted to have you here, and thank you for your interest in Beforepay Group.

Speaker #3: I know many of you are very familiar with what we do, but I will recap it briefly because there are so many new people on the call today.

Jamie Twiss: I know many of you are very familiar with what we do, but I will recap it briefly because there are so many new people on the call today. Beforepay is a mission-driven consumer lender operating in Australia, with our Carrington Labs software subsidiary operating globally as well. Our flagship products within Australia in the lending business are the Pay Advance, which is our first and still largest product. That is an affordable small dollar short duration loan ranging from AUD 50 up to AUD 2,000 with terms up to 62 days. More recently, we have introduced the personal loan product, which is a larger and longer duration loan.

Speaker #3: Beforepay is a mission-driven consumer lender operating in Australia, with our Carrington Labs software subsidiary operating globally as well. Our flagship products within Australia and the lending business are the Pay Advance—which is our first and still largest product—and that's an affordable, small-dollar, short-duration loan ranging from $50 up to $2,000, with terms up to 62 days.

Speaker #3: And then more recently, we've introduced the Personal Loan product, which is a larger and longer-duration loan that currently goes up to 12 months in duration and a $5,000 limit. We've said a number of times that we've increased those limits and durations a number of times already, and we expect to continue doing so as we get more data to train our risk models.

Jamie Twiss: That currently goes up to 12 months in duration and a AUD 5,000 limit, and we've said a number of times that we've increased those limits and durations a number of times already, and we expect to continue doing so as we get more data to train our risk models. Both of those lending products are underpinned by Carrington Labs. Carrington Labs is the credit risk capability of the group. It's one of the key pieces of what's made Beforepay so successful on the lending side, and we also do offer it on a software service basis to external clients, mostly lenders in the United States at this point. I'll start by noting that we have introduced some additional metrics to our disclosures and to our presentation this time.

Speaker #3: Both of those lending products are underpinned by Carrington Labs. Carrington Labs is the credit risk capability of the group. It's one of the key pieces of what has made Beforepay so successful on the lending side, and we also offer it on a software-as-a-service basis to external clients—mostly lenders in the United States up to this point.

Speaker #3: I'll start by noting that we have introduced some additional metrics to our disclosures and our presentation this time. These are industry-standard metrics that many of our peers and other digital lenders report, with cash NPAT being the most notable of those.

Jamie Twiss: These are industry-standard metrics that many of our peers and other digital lenders report, Cash NPAT being the most notable of those. We've had requests from a number of you to provide those similar metrics in order to make it easier to compare our performance to that of other listed companies in that digital lending space. Of course, all of our statutory metrics are still available, as we have always presented them. Before I hand it over to Laavanya to talk through some of the specifics around the numbers, I will just step back a little bit and talk about what made FY26 such a remarkable year for Beforepay Group.

Speaker #3: We had requests from a number of you to provide those similar metrics in order to make it easier to compare our performance to that of other listed companies in the digital lending space.

Speaker #3: Of course, all of our statutory metrics are still available, as we have always presented them. Before I hand it over to Lavanya to talk through some of the specifics around the numbers, I will just step back a little bit and talk about what made FY26 such a remarkable year for Beforepay Group.

Speaker #3: As you can see from these numbers, it was a year of very, very strong performance. I think, by a wide margin, the strongest year we've had, with records on the top line and records on the bottom line.

Jamie Twiss: As you can see from these numbers, it was a year of very strong performance, I think by a wide margin, the strongest year we've had with records on the top line, records on the bottom line, terrific margins, very strong credit performance. It was a really remarkable, genuinely transformative year that I think has rebased the business for FY27 and beyond. There are really two big things that happened this year. The first one is we moved through a repricing of that Pay Advance product. We used to charge a flat 5% fee, and we've introduced an interest component to that, which takes the average price to consumer into the mid to high sixes, just under 7% of the amount originated. It's a relatively modest increase for the consumer, and indeed, we haven't seen any meaningful shifts in customer behavior off the back of that.

Speaker #3: Terrific margins, very, very strong credit performance. So, it was a really remarkable, genuinely transformative year that I think has rebased the business for FY27 and beyond.

Speaker #3: There are really two big things that happened this year. The first one is we moved through a repricing of that Pay Advance product.

Speaker #3: So, we used to charge a flat 5% fee, and we've introduced an interest component to that, which takes the average price for the consumer into the mid to high sixes—just under 7% of the amount originated.

Speaker #3: It's a relatively modest increase for the consumer, and indeed we haven't seen any meaningful shifts in customer behavior off the back of that. But that obviously flows through to the bottom line, and that's had a significant impact on the financials of the company.

Jamie Twiss: That obviously flows through to the bottom line, and that's had a significant impact on the financials of the company. The second thing that happened this year was we introduced personal loans previously, but FY26 was the year when we genuinely began to scale those. Without stealing Laavanya's thunder, originations were up several hundred percent from FY25. We will talk more about that and the outlook for personal loans as we go. But those two changes, in addition to a number of other things we did, both delivered that breakout performance that we had this year as well as set us up for a very strong FY27. I'll come back to FY27 at the end of this presentation. Laavanya will take us through the numbers.

Jamie Twiss: That obviously flows through to the bottom line, and that's had a significant impact on the financials of the company. The second thing that happened this year was we introduced personal loans previously, but FY 2026 was the year when we genuinely began to scale those. Without stealing Laavanya's thunder, originations were up several hundred percent from FY25. We will talk more about that and the outlook for personal loans as we go. But those two changes, in addition to a number of other things we did, both delivered that breakout performance that we had this year as well as set us up for a very strong FY27. I'll come back to FY27 at the end of this presentation. Laavanya will take us through the numbers.

Speaker #3: Then the second thing that happened this year was we introduced Personal Loans previously, but FY26 was the year when we genuinely began to scale those.

Speaker #3: So, without stealing Lavanya's thunder, originations were up several hundred percent from FY25. We'll talk more about that, and the outlook for Personal Loans, as we go.

Speaker #3: But those two changes, in addition to a number of other things we did, both delivered that breakout performance that we had this year, as well as set us up for a very, very strong FY27.

Speaker #3: And I'll come back to FY27 at the end of this presentation. Lavanya, that will take us to the numbers.

Speaker #1: Thanks, Jamie, and good morning, everyone. So our cash NPAT was $15.7 million, which is 57% up on the prior year. I'll jump into a bit more detail on that in a few slides later on.

Laavanya Pari: Thanks, Jamie, and good morning, everyone. Our cash NPAT was AUD 15.7 million, which is 57% up on the prior year. I will jump into a bit more detail on that in a few slides later on. Our total advances for the year were AUD 963 million, which was up 19% on AUD 807 million in FY25. This was driven by the Pay Advance average advance size increasing during the year, as well as personal loans really scaling. I am starting to see that in our advance number. Those contributed to the revenue increase as well as the repricing that Jamie mentioned earlier, which drove our revenue number up to AUD 50.6 million, which was up 26% on the AUD 40.3 million in FY25.

Speaker #1: Our total advances for the year were $963 million, which was up 19% on $807 million in FY25. This was driven by the Pay Advance average advance size increasing during the year, as well as personal loans really scaling, and us starting to see that in our advance number.

Speaker #1: Those contributed to the revenue increase, as well as the repricing that Jamie mentioned earlier, which drove our revenue number up to $50.6 million, which was up 26% on the $40.3 million in FY25.

Speaker #1: Net bad debts, which is a new metric included and is calculated as the receivables written off divided by total advances, was 0.5% for the year, which was up from 0.2% in FY25.

Laavanya Pari: Net bad debts, which is a new metric included and is calculated as the receivables written off divided by total advances, was 0.5% for the year, which was up on 0.2% in FY25. This increase was due to the inclusion of the personal loan product, which, as planned, has a higher net bad debt compared to the Pay Advance product, as well as an exceptionally low Pay Advance net bad debts in the prior year. The cash NPAT per FTE was AUD 314,000, which was an increase of 35% on the prior year. This is due to increased profitability as well as continued operational efficiencies that we have had.

Speaker #1: This increase was due to the inclusion of the Personal Loan product, which, as planned, has a higher net debt bad debt compared to the Pay Advance product, as well as exceptionally low Pay Advance net bad debts in the prior year.

Speaker #1: The cash NPAT per FTE was $314,000, which was an increase of 35% on the prior year. This is due to increased profitability, as well as continued operational efficiencies that we've had.

Speaker #3: And I think, just to pause on that one, that's a metric we're very proud of. That would be one of the highest profitability per employee figures that you would find.

Jamie Twiss: I think just to pause on that one, that is a metric we are very proud of. That would be one of the highest profitability per employee figures that you would find, and it stems from the fact that we are an incredibly lean business, issuing more than 2 million loans last year with about 50 people.

Speaker #3: And it stems from the fact that we are an incredibly lean business, issuing more than 2 million loans last year with about 50 people.

Laavanya Pari: We also announced during the year or just after the year that we have a new AUD 100 million debt facility, which was executed in July. This is up from the AUD 55 million facility that we had previously, and it has got significantly improved rates on that of around 3% to 4% compared to the previous facility. Based on a AUD 40 million facility for a year, we would save over AUD 1 million. Jumping into the cash NPAT, you can see we had a 57% increase from AUD 10 million in the prior year up to AUD 15.7 million. In the last two years, we have actually increased our cash NPAT by four times. This is a record for us in terms of our profitability and continues to show how the underlying economics of the business are really pulling through.

Speaker #1: We also announced during the year, or just after the year, that we have a new $100 million debt facility, which was executed in July.

Speaker #1: This is up from the $55 million facility that we had previously, and it's got significantly improved rates on that of around 3 to 4%, compared to the previous facility.

Speaker #1: So, based on a $40 million facility, for a year we would save over $1 million. So, jumping into the net, jumping into the cash NPAT, you can see we had a 57% increase from $10 million in the prior year, up to $15.7 million.

Speaker #1: And in the last two years, we've actually increased our cash NPAT by four times. This is a record for us in terms of our profitability and continues to show how the underlying economics of the business are really coming through.

Speaker #3: I feel compelled to clarify an issue, in the spirit of not assuming forecasts. We are not promising to double profitability every year into the indefinite future.

Jamie Twiss: I feel compelled to clarify an issue, in the spirit of not assuming forecasts. We are not promising to double profitability every year into the indefinite future. But it's pleasing that we've been able to do it for the last couple of years.

Speaker #3: But it's pleasing that we've been able to do it for the last couple of years.

Speaker #1: Looking at our Pay Advance product, you can see that our advances have increased by 18%, from $805 million up to $946 million. As I mentioned earlier, the average advance size for Pay Advance was a contributing factor for why that happened, and that increased from $390 up to $450, which was a 15% increase.

Laavanya Pari: Looking at our Pay Advance products, you can see that our advances have increased by 18%, from AUD 805 million up to AUD 946 million. As I mentioned earlier, the average advance size for Pay Advance was a contributing factor for why that happened, and that increased from AUD 390 up to AUD 450, which was a 15% increase. The net bad debts increased from FY25 from 0.2% up to 0.4%. As we've mentioned in the past, our FY25 number, in particular, was low. We continue to optimize our average advance size and our net bad debts to ensure that we maximize our profitability. So this 0.4% is well within our planning. On our personal loans, you can see that advances have increased by 728% from AUD 2 million last year up to AUD 16.9 million in FY26.

Speaker #1: The net bad debts increased from FY25, from 0.2% up to 0.4%. As we've mentioned in the past, our FY25 number in particular was low.

Speaker #1: And we continue to optimize our average advance size and our net bad debts to ensure that we maximize our profitability. So, this 0.4% is well within our planning.

Speaker #1: On our Personal Loans, you can see that advances have increased by 728%, from $2 million last year up to $16.9 million in FY26.

Speaker #1: The average advance size for personal loans was $3,124, and around 57% of our loans originated in Q4 were 12-month loans. So we're certainly seeing that our customers are opting for longer-term loans when they're eligible.

Laavanya Pari: The average advance size for personal loans was AUD 3,124, and around 57% of our loans that originated in Q4 were 12-month loans. So we're certainly seeing that our customers are opting for longer-term loans when they're eligible. Our net bad debts for personal loans was 3.3%. As we mentioned previously, the unit economics for a personal loan is different from a Pay Advance, so this 3.3% is up on the Pay Advance product, but certainly within our expectations. Here, we've got a reconciliation from our statutory NPAT to our Cash NPAT, showing that the revenue increase that we've generated has been able to flow through to our profitability metrics. Again, you can see the underlying economics of the business are very strong.

Speaker #1: Our net bad debts for Personal Loans was 3.3%. So, as we've mentioned previously, the unit economics for a Personal Loan is different from a Pay Advance.

Speaker #1: So, this 3.3% is up on the Pay Advance product, but certainly within our expectations. Here we've got a reconciliation from our statutory NPAT to our cash NPAT.

Speaker #1: Showing that the revenue increase that we've generated has been able to flow through to our profitability metrics. And again, you can see the underlying economics of the business are very strong.

Speaker #1: On our balance sheet, we have a very healthy balance sheet, as we say in over four seas. But you can see that our loan book through our receivables line has increased, driven by that average advance size and advances increasing on the Pay Advance product, as well as Personal Loans scaling significantly during the year.

Laavanya Pari: On our balance sheet, we have a very healthy balance sheet, as we say, in all the four Cs, but you can see that our loan book through our receivables line has increased, driven by that average advance size and advances increasing on the Pay Advance product, as well as personal loans scaling significantly during the year. Our equity position, very healthy, AUD 48.9 million, which is a 25% increase on the prior year.

Speaker #1: And our equity position is very healthy—$48.9 million—which is a 25% increase on the prior year.

Speaker #3: So, turning to the outlook from here—I'll start by saying, and I think this is a really important point—that if we did nothing different from where we are right now, FY27 would still be a dramatic uplift on FY26.

Jamie Twiss: Turning to the outlook from here. I will start by saying, and I think this is a really important point, that if we did nothing different from where we are right now, FY27 would still be a dramatic uplift on FY26. The reason for that being these big changes that we put through last year, the scaling of the personal loans and the repricing of the Pay Advance, they occurred over the course of the year. The repricing, in particular, wasn't completed until partway through Q4 of the year. These very strong FY26 numbers that you see in this presentation only represent a relatively small fraction of the benefit that we expect to get in FY27.

Jamie Twiss: Turning to the outlook from here. I will start by saying, and I think this is a really important point, that if we did nothing different from where we are right now, FY27 would still be a dramatic uplift on FY 2026. The reason for that being these big changes that we put through last year, the scaling of the personal loans and the repricing of the Pay Advance, they occurred over the course of the year. The repricing, in particular, wasn't completed until partway through Q4 of the year. These very strong FY 2026 numbers that you see in this presentation only represent a relatively small fraction of the benefit that we expect to get in FY27.

Speaker #3: The reason for that being these big changes that we put through last year—the scaling of the Personal Loans and the repricing of the Pay Advance—they occurred over the course of the year.

Speaker #3: And the repricing, in particular, wasn't completed until partway through the fourth quarter of the year. So these very strong FY26 numbers that you see in this presentation only represent a relatively small fraction of the benefit that we expect to get in FY27.

Speaker #3: And those of you that joined us for the fourth quarter webinar would have heard us say, and I think we've said it again in this release, that the actual interest realized on Pay Advances in FY26 was less than $2 million.

Jamie Twiss: Those of you that joined us for the Q4 webinar would have heard us say, and I think we have said it again in this release, that the actual interest realized on Pay Advances in FY26 was less than AUD 2 million. If we had been charging it at the exit rate, it would have been AUD 12.5 million. There is obviously a tremendous upside just from running the business through FY27 the way that we finished FY26. Of course, we do not plan to stand still. We have a number of things that we are pretty excited about, and so I will just talk through our plans for the coming year and the things that we are thinking about on this page. The first one is optimizing Pay Advance limits.

Jamie Twiss: Those of you that joined us for the Q4 webinar would have heard us say, and I think we have said it again in this release, that the actual interest realized on Pay Advances in FY 2026 was less than AUD 2 million. If we had been charging it at the exit rate, it would have been AUD 12.5 million. There is obviously a tremendous upside just from running the business through FY27 the way that we finished FY 2026. Of course, we do not plan to stand still. We have a number of things that we are pretty excited about, and so I will just talk through our plans for the coming year and the things that we are thinking about on this page. The first one is optimizing Pay Advance limits.

Speaker #3: If we had been charging it at the exit rate, it would have been 12 and a half. So there’s obviously a tremendous upside just from kind of running the business through FY27 the way that we finished FY26.

Speaker #3: Now, of course, we don't plan to stand still. We have a number of things that we're pretty excited about, so I'll just talk through our plans for the coming year and the things that we're thinking about on this page.

Speaker #3: The first one is optimizing Pay Advance limits. And again, those of you that have been with us for a while have probably heard me talk about the way that we think about the intersection of revenue, risk, and defaults in such a way that we are able to optimize the best limit for any individual customer by looking at that elasticity of default and figuring out what's the loan offer, out of everything we could offer them, with the highest expected value, and then making that offer. That's been something that's been tremendously productive for us over the years.

Jamie Twiss: Again, those of you that have been with us for a while have probably heard me talk about the way that we think about the intersection of revenue and risk and defaults in such a way that we are able to optimize the best limit for any individual customer by looking at that elasticity of default and figuring out what is the loan offer, out of everything we could offer them, with the highest expected value, and then making that offer. That has been something that has been tremendously productive for us over the years. Partially because of the repricing, but also because we have got a new generation of significantly powerful risk models coming online over the course of calendar year 2026. As those things happen, that actually means that we have an opportunity to go back and look at those limits.

Speaker #3: Partially because of the repricing, but also because we've got a new generation of significantly powerful risk models coming online over the course of calendar year 2026, as those things happen, that actually means that we have an opportunity to go back and look at those limits. Because essentially, you skew that kind of marginal contribution curve further to the right, we then have an opportunity to raise limits.

Jamie Twiss: Because essentially you skew that kind of marginal contribution curve further to the right, we then have an opportunity to raise limits. I think we will be doing that work in the coming months as these new models bed down. What you should expect to see off the bat is probably an increase in that average advance size and probably an increase in net bad debts. Although, again, we do not make forecasts. The second thing that we are thinking about are the personal loan risk models. We are now at that exciting part of the We are starting that virtuous circle whereby by originating more loans, we then get more data. That enables us to train sharper models. That enables us to put more offers out there because we only ever put out an offer where we see it as a positive expected value thing to do.

Speaker #3: So, I think we will be doing that work in the coming months as these new models bed down. And what you should expect to see off that is probably an increase in that average advance size, and probably an increase in net bad debts, although again, we don't make forecasts.

Speaker #3: The second thing that we're thinking about are the personal loan risk models. So, we're now at that exciting part where we're starting that virtuous circle: by originating more loans, we then get more data, which enables us to train sharper models, which in turn enables us to put more offers out there—because we only ever put out an offer where we see it as a positive expected value thing to do.

Speaker #3: And then those more offers obviously lead to more loans, which lead to more data. And that has been—that's what has driven the Pay Advance business to the levels of success we see now.

Jamie Twiss: And then those more offers obviously lead to more loans, lead to more data. That is what has driven the Pay Advance business, the levels of success we see now, and we are starting that process with the personal loans. Something I am personally very excited about is watching that data come in from these new cohorts of loans we are issuing, and then the ability to retrain ever sharper models and then again, expand eligibility and limits off the back of that. Those models then power the third thing on this page, extend the personal loan product range. As you heard me say earlier, and have heard me say many times before, we started with AUD 3,000 3-month loans. We have moved them up to 4 to 5,000. We have moved from 3 months to 6 to 12. We certainly do not expect to stop there. We expect that durations will continue to extend.

Speaker #3: And we are starting that process with Personal Loans. Something I’m personally very excited about is watching that data come in from these new cohorts of loans we’re issuing, and then the ability to retrain ever-sharper models.

Speaker #3: And then again, expand eligibility and limits off the back of that. Those models then power the third thing on this page: extend the Personal Loan product range.

Speaker #3: As you heard me say earlier, and you've heard me say many times before, we started with $3,000 three-month loans. We've moved them up to $4,000 to $5,000.

Speaker #3: We've moved from three months to six, to twelve. We certainly don't expect to stop there. We expect that durations will continue to extend. We expect that limits will continue to extend.

Jamie Twiss: We certainly do not expect to stop there. We expect that durations will continue to extend.

Jamie Twiss: We expect that limits will continue to extend. When you pencil out the multiplier effect of putting out money for 2 years instead of 1, 3 years instead of 2, when you move from 5,000 to 10 to 15, you can see how that flows through the economics of the business, and it is very significant. I think we are now at the beginning of that virtuous cycle with data and issuance that will allow us to keep moving on that. The last one you can see there is a lot of focus on personal loans in FY27, is building out our distribution for personal loans. Many of you would have seen the release we put out recently that we crossed over 2 million registrations. We do have a large and loyal installed user base, and that is obviously a great opportunity for us with the personal loan products.

Speaker #3: And when you pencil out the multiplier effect of putting out money for two years instead of one, three years instead of two, when you move from 5,000 to 10,000 to 15,000, you can see how that flows through the economics of the business.

Speaker #3: And it's very significant. And so I think we are now at the beginning of that virtuous cycle with data and issuance that will allow us to keep moving on that.

Speaker #3: And the last one, you can see there's a lot of focus on Personal Loans in FY27—it's building out our distribution for Personal Loans.

Speaker #3: Many of you would have seen the release we put out recently that we crossed over 2 million registrations. We do have a large and loyal installed user base, and that's obviously a great opportunity for us with the Personal Loan product. These are people who we know well, we understand their risk, and they like us from the Pay Advance product.

Jamie Twiss: People who we know well, we understand their risk. They like us from the Pay Advance product. We do also offer the loan to new-to-group customers, people who Pay Advance is not something that they would use as their first product. They would go straight to a personal loan. We are offering that now, and I think we will look to build out our path to those customers, looking at new channels and in line with our expected value mindset, increasing how we market to those customers. Finally, beneath all of this, of course, is always the continued investment in Carrington Labs. This is really one of the distinctive things about the company is our IP around credit risk management, and that capability continues to get stronger. It has driven the successes in the lending business.

Speaker #3: But we do also offer the loan to new-to-group customers—people for whom Pay Advance isn't something they would use as their first product.

Speaker #3: They would go straight to a personal loan. We're offering that now, and I think we will look to build out our path to those customers, looking at new channels and, in line with our expected value and mindset, increasing how we market to those customers.

Speaker #3: And then, finally, beneath all of this, of course, is always the continued investment in Carrington Labs. This is really one of the distinctive things about the company—our IP around credit risk management.

Speaker #3: And that capability continues to get stronger. It has driven the successes in the lending business, and it will drive this next generation of risk models that I think will be pretty meaningful.

Jamie Twiss: It will drive this next generation of risk models that I think will be pretty meaningful. Of course, it continues to be an externally facing client offering as well. Even just from that run rate effect of running FY27 the way that we exited FY26, even just from that, there is very significant uplift in the business, and we do expect a very strong FY27. In addition, we do think that the initiatives on this page will accelerate the business even further and faster. I personally am very excited about where we are going to be in FY27 and beyond. Again, as always, for those of you that are new, we are delighted to have you joining us at what feels like just the right time.

Jamie Twiss: It will drive this next generation of risk models that I think will be pretty meaningful. Of course, it continues to be an externally facing client offering as well. Even just from that run rate effect of running FY27 the way that we exited FY 2026, even just from that, there is very significant uplift in the business, and we do expect a very strong FY27. In addition, we do think that the initiatives on this page will accelerate the business even further and faster. I personally am very excited about where we are going to be in FY27 and beyond. Again, as always, for those of you that are new, we are delighted to have you joining us at what feels like just the right time.

Speaker #3: And, of course, it continues to be an externally facing client offering as well. So again, even just from that run rate effect of running FY27 the way that we exited FY26, even just from that, there is very significant uplift in the business.

Speaker #3: And we do expect a very strong FY27. In addition, we do think that the initiatives on this page will accelerate the business even further and faster, and so we are—I personally am—very, very excited about where we're going to be in FY27 and beyond.

Speaker #3: And again, as always, for those of you that are new, we're delighted to have you joining us at what feels like just the right time.

Speaker #3: And for those of you that have been with us for a while, we're delighted that we're in a position to reward you for the time that you've spent with us over the recent years.

Jamie Twiss: For those of you that have been with us for a while, we are delighted that we are in a position to reward you for the time that you have spent with us over the recent years. With that, thank you very much, and we are happy to move to your questions.

Speaker #3: With that, thank you very much. We are happy to move to your questions.

Speaker #1: All right. Thank you, Jamie and Lavanya. We'll now move to the Q&A session. As a reminder, if you'd like to ask a question, please use the Q&A function on your screen.

James Lennon: All right. Thank you, Jamie and Lavanya. We will now move to the Q&A session. As a reminder, if you would like to ask a question, please use the Q&A function on your screen. Your first question is in relation to personal loans. Larry Gandler has asked, "The ECL of AUD 3.6 million seems high relative to the AUD 17 million personal loan originations and only 3.3% of write-offs. Can you help me understand?

James Lennon: All right. Thank you, Jamie and Lavanya. We will now move to the Q and A session. As a reminder, if you would like to ask a question, please use the Q and A function on your screen. Your first question is in relation to personal loans. Larry Gandler has asked, "The ECL of AUD 3.6 million seems high relative to the AUD 17 million personal loan originations and only 3.3% of write-offs. Can you help me understand?

Speaker #1: Your first question is in relation to personal loans. Larry Gandler has asked, "The ECL of $3.6 million seems high relative to the $17 million in personal loan originations."

Speaker #1: And only 3.3% of write-offs. Can you help me understand?

Speaker #3: So, I think there are a couple of things going on there. One of them is, FY26 was still a year of some experimentation in terms of writing loans that, as the risk models mature, we probably wouldn’t write on a commercial basis.

Jamie Twiss: I think there are a couple things going on there. One of them is, FY26 was still a year of some experimentation in terms of writing loans that, as the risk models mature, you would not write on a commercial basis. In terms of eligibility limits, who we are extending what to, we definitely kind of pushed the boat out a fair ways in order to get kind of a richer data set around that. I think also in the absence of kind of really seasoned, tenured cohort performance, as many of you know, we tend to take a cautious approach to these sorts of things.

Jamie Twiss: I think there are a couple things going on there. One of them is, FY 2026 was still a year of some experimentation in terms of writing loans that, as the risk models mature, you would not write on a commercial basis. In terms of eligibility limits, who we are extending what to, we definitely kind of pushed the boat out a fair ways in order to get kind of a richer data set around that. I think also in the absence of kind of really seasoned, tenured cohort performance, as many of you know, we tend to take a cautious approach to these sorts of things.

Speaker #3: But in terms of eligibility limits—who we're extending what to—we definitely kind of pushed the boat out a fair ways in order to get a richer data set around that.

Speaker #3: I think also, in the absence of really seasoned, tenured cohort performance, we, as many of you know, tend to take a cautious approach to these sorts of things.

Speaker #3: Then the final thing I'd mention is just a kind of technical accounting point, which is that the way we are required to account for personal loans is, at the moment of writing a personal loan, we take the expected 12 months of credit losses.

Jamie Twiss: The final thing I would mention is quite just a kind of technical accounting thing, which is that the way that we are required to account for personal loans is at the moment of writing a personal loan, we take the expected 12 months of credit losses, but the revenue is recognized over the life of the loan. If we write an AUD 5,000 loan on June 30th, then we would be recognizing a few hundred dollars in losses within FY26, but the revenue from that loan would be, sorry, mental math, so do your own research if this number is important to you, but it would be sort of between AUD 3.5 and AUD 4. We will always see that ECL number in these periods of rapid growth outstrip the longer-term loss rates.

Jamie Twiss: The final thing I would mention is quite just a kind of technical accounting thing, which is that the way that we are required to account for personal loans is at the moment of writing a personal loan, we take the expected 12 months of credit losses, but the revenue is recognized over the life of the loan. If we write an AUD 5,000 loan on June 30th, then we would be recognizing a few hundred dollars in losses within FY 2026, but the revenue from that loan would be, sorry, mental math, so do your own research if this number is important to you, but it would be sort of between AUD 3.5 and AUD 4. We will always see that ECL number in these periods of rapid growth outstrip the longer-term loss rates.

Speaker #3: But the revenue is recognized over the life of the loan. So if we write a $5,000 loan on June 30th, then we would be recognizing a few hundred dollars in losses within FY26.

Speaker #3: But the revenue from that loan would be sorry, mental math. So do your own research if this number is important to you, but it would be sort of between three and a half and four dollars.

Speaker #3: So, we will always see that ECL number in these periods of rapid growth outstrip the longer-term loss rates.

Speaker #1: Right. Thank you. Another one from Larry. Looking at slide 17, gross write-offs, as previously disclosed for FY24, have changed. In FY24, gross write-offs were disclosed at $17.8 million, and recoveries at $7.6 million.

James Lennon: Great. Thank you. Another one from Larry Gandler. Looking at slide 17, gross write-offs as previously disclosed for FY24 have changed. In FY24, gross write-offs were disclosed at AUD 17.8 million and recoveries at AUD 7.6 million. Is there a change in definition?

Speaker #1: Is there a change in definition?

Speaker #2: Yes. So previously, we were taking the net default for the expense, essentially on the ECL provision, divided by the advances plus the interest and principal.

Laavanya Pari: Yes. Previously we were taking the net default. The expense essentially on the ECL provision, divided by the advances plus the interest of the principal. Here we are taking the net bad debts, so this is consistent with our peers. We are taking our net bad debts written off during the year. So the recovery number is unchanged and divided by the total advances. So those numbers at the top, you can match that to our financial statements, including the previous years.

Speaker #2: Here, we're taking the net bad debts. This is consistent with our peers. We're taking our net bad debts written off during the year.

Speaker #2: So, the recovery number is unchanged, and the total is divided by the total advances. Those numbers at the top—you can match them to our financial statements, including the previous years.

Speaker #1: All right. Thank you. Another and final one from Larry: Has customer behavior in response to the Pay Advance price increase noticeably changed since the quarterly result announcement?

James Lennon: Great. Thank you. Another and final one from Larry Gandler. Has customer behavior in response to Pay Advance price increase noticeably changed since the quarterly result announcement?

Speaker #3: No. As we said in Q4, and I think this answer still holds, because we look at so many different numbers here. We've looked at probably a few dozen different numbers in regards to default rate, throughput, and reuse rate.

Jamie Twiss: No. As we said in Q4, and I think this answer still holds, because we look at so many different numbers here, when we have looked at probably a few dozen different numbers in regards to default rate, throughput, reuse rate. We have segmented by customer risk score, by amount size. We have looked at A/B tests and before and after time box control groups. Again, when you look at dozens and dozen numbers, there are a few where if you squint a certain way, maybe as that one moved. But there has been no meaningful change that has caused us to think that there will be a significant commercial or consumer impact from the change in pricing.

Speaker #3: We've segmented by customer risk score, by kind of amount size. We've looked at kind of A/B tests and before and after kind of time box control groups.

Speaker #3: And again, when you look at kind of dozens and dozens of numbers, there are a few where if you squint a certain way, maybe—is that one moved?

Speaker #3: But there's been no meaningful change that has caused us to think there will be a significant commercial or consumer impact from the changing pricing.

Speaker #1: All right, thank you. One here from Thomas Zimmer: Net bad debts ticked up from 0.2% to 0.5% this year, driven primarily by scaling Personal Loans.

James Lennon: Great. Thank you. One here from Thomas Sema. Net bad debts ticked up from 0.2% to 0.5% this year, driven primarily by scaling personal loans. As personal loan growth increases towards a larger portion of the total advances, where do you expect peak bad debt rates to settle? What is your target non-performing loan threshold?

Speaker #1: As personal loan growth increases towards a larger portion of the total advances, where do you expect peak bad debt rates to settle? And what is your target non-performing loan threshold?

Speaker #3: So I'd say a couple of things. First of all, on the 0.5%—there are two things going on there. The 0.2% in FY25, as Lavanya noted, that was a low number.

Jamie Twiss: I would say a couple of things. First of all, on the 0.5%, there are two things going on there. The 0.2% in FY25, as Lavanya noted, that was a low number. At the time, I said that actually I was worried that our defaults were too low, that we were leaving money on the table as we try to optimize those limits. We were under-lending. That proved to be the case, as you can see with the increase in the average limits to AUD 450 this year. That has more than compensated for the 0.2% to 0.4% on the Pay Advance side that we saw. The 0.4% to 0.5%, that is the impact of personal loans. To answer the question, I would say two things.

Speaker #3: At the time, I said that actually, I was worried that our defaults were too low—that we were leaving money on the table as we tried to optimize those limits.

Speaker #3: We were being, we were under-lending. And that proved to be the case, as you can see with the increase in the average limit at $450 this year.

Speaker #3: That is more than compensated for the 0.2 to 0.4 on the Pay Advance side that we saw. Then, the 0.4 to 0.5—that is the impact of Personal Loans.

Speaker #3: So, to answer the question, I'd say two things. So yes, sort of as you'd expect, as Personal Loans become a larger proportion of the book, the net bad debts across the group are a weighted average between the Pay Advance figure and the Personal Loan figure.

Jamie Twiss: Yes, as you would expect, as personal loans become a larger proportion of the book, the net bad debts across the group are a weighted average between the Pay Advance figure and the personal loan figure. That group wide number will get closer to the personal loan figure over time. We actually do not run to a specific target. The way that we always think about this, again, it comes back to that optimization function, is for any given customer, we can model. In fact, this is what we do. We model out if we gave you an AUD 50 Pay Advance, an AUD 100 Pay Advance, all the way up to AUD 2,000 on the Pay Advance, then if we gave you an AUD 2,500, AUD 3,000, AUD 5,000 personal loan. In due course, it would be an AUD 8,000 or AUD 10,000 personal loan.

Speaker #3: And so that group-wide number will kind of get closer to the personal loan figure over time. We actually don't run to a specific target.

Speaker #3: The way that we always think about this—and again, it comes back to that optimization function—is for any given customer, we can model, in fact this is what we do.

Speaker #3: We model out: if we gave you a $50 Pay Advance, $100 Pay Advance, all the way up to $2,000 on the Pay Advance, and then if we gave you a $2,500, $3,000, $5,000 Personal Loan—and, of course, maybe an $8,000 or $10,000 Personal Loan—what do we think is the likelihood that you will take out that loan?

Jamie Twiss: What do we think is the likelihood that you will take out that loan? What is the expected default rate off the back of that? We map our gross units, our net contribution margin with those default models, with those default model default outcomes into that. We find the value of each of those possible offers to us, and we put the highest offer in front of you. The net bad debt rate is an outcome of that process. Obviously, we will always look to optimize value overall, which means there needs to be ample headroom between the net bad debt rate and the revenue figure minus those funding costs. We do not have a specific target in mind. We will be focused.

Speaker #3: And then what is the expected default rate off the back of that? And then we map our gross—sorry, our net contribution margin with those default models, with those default model default outcomes, into that.

Speaker #3: And we find the value of each of those possible offers to us, and we put the highest offer in front of you. So, the net bad debt rate is an outcome of that process.

Speaker #3: Obviously, we will always look to optimize value overall, which means there needs to be ample headroom between the net bad debt rate and the revenue figure minus those funding costs.

Speaker #3: But we don't have a specific target in mind. We will be focused, okay.

James Lennon: Okay. A question here from Ali Ahmed. What are the specific criteria or milestones Carrington Labs needs to hit to remain a strategic priority? What is the timeline for that assessment?

Speaker #1: A question here from Ali Ahmed: What are the specific criteria or milestones current in Labs needs to hit to remain a strategic priority, and what's the timeline for that assessment?

Speaker #3: So, first of all, I would just like everybody on the webinar to know that Ali Ahmed was one of our very first employees and built a lot of the systems that we're using today.

Jamie Twiss: First of all, I would just like everybody on the government to know that Ali Ahmed was one of our very first employees and built a lot of the systems that we are using today, and Ali, we are delighted to have you here, and we hope you are doing well. In terms of the milestones for Carrington Labs, I would say two things. The first one is, Carrington Labs is absolutely integral to the overall shape, health, and wellbeing of the business. I think everything that you have seen in this presentation is a result of the credit risk capability that is embedded in Carrington Labs. I think the question was probably focused on how do we think about that as an external proposition, because we do offer that externally.

Speaker #3: And here's Ali. We're delighted to have you here, and we hope you're doing well. In terms of the milestones for Carrington Labs, I'd say two things.

Speaker #3: So the first one is, Carrington Labs is absolutely integral to the overall shape, health, and well-being of the business. And I think everything that you've seen in this presentation is a result of the credit risk capability that's embedded in Carrington Labs.

Speaker #3: I think the question was probably focused on how do we think about that as an external proposition, because we do offer that externally. And I think what I'd say there is, like everything else, we always think about the expected return on any dollar that we spend.

Jamie Twiss: What I would say there is, like everything else, we always think about the expected return on any dollar that we spend. As Carrington Labs has traction in this segment or not in this segment, and as things move through the pipeline, we will adjust the externally facing effort and spend accordingly. We continue to be active with that as an externally facing proposition, and if it looks like actually putting more resource into that will be helpful, then of course we will do that. If it feels like there is a period where actually we need to let the industry catch up with us a little bit, then we will probably go a bit quieter for a period of time. But we remain absolutely committed to the capability embedded in it, and it will always be a focus for us.

Speaker #3: And as Carrington Labs kind of sort of has traction in this segment or not in this segment, and as we kind of things move through the pipeline, we will adjust the externally facing effort and spend accordingly.

Speaker #3: So we continue to be active with that as an externally facing proposition. And if it looks like actually putting more resource into that will be helpful, then of course we will do that.

Speaker #3: And if it feels like there’s a period where we actually need to sort of let the industry catch up with us a little bit, then we’ll probably go a bit quieter for a period of time.

Speaker #3: But we remain absolutely committed to the capability embedded in it, and it will always be a focus for us.

Speaker #1: All right. There's a change of tack here. A question on personnel. It looks like the quality of the team has been increasing. Can you comment on this?

James Lennon: All right. There is a change of tack here. A question on the personnel. It looks like the quality of the team has been increasing. Can you comment on this, and if you plan to make additional hires to accelerate growth?

Speaker #1: And if you plan to make additional hires to accelerate growth?

Speaker #3: So I, of course, would like to think that the quality of the team is always increasing. And I think we have hired a number of very capable people.

Jamie Twiss: I, of course, would like to think that the quality of the team is always increasing. I think we have hired a number of very capable people. We have a big focus on developing our people internally as well, we try to promote internally, and we've brought a number of people up who are relatively junior into much more senior roles. That's, of course, a big focus. It's very much a talent-driven business, especially on some of the really more difficult technical sides. Having said that, I think the team has been very capable since inception, so I don't want to cast any aspersions on the past. In terms of hires to support growth, where we see the return on adding cost, we will happily do so.

Speaker #3: And we've also placed a big focus on developing our people internally as well. We try to promote internally, and we've brought a number of people up who were relatively junior into much more senior roles.

Speaker #3: And that's of course a big focus. It's very much a talent-driven business, especially on some of the kind of like the really kind of more difficult technical sides.

Speaker #3: Now, having said that, I think the team has been very capable since inception. So I don't want to cast any aspersions on the past.

Speaker #3: In terms of hires to support growth, where we see the return on adding cost, we will happily do so. Every dollar that leaves this business, we always do it if we think it's going to come back with a friend.

Jamie Twiss: Every dollar that leaves this business, we always do it if we think it's going to come back with a friend. If, for example, we had a great, say, commercial opportunity with Carrington Labs, and we had to spend in order to convert and then implement it, we would do that in a second. With marketing, we don't run to a specific amount of money we want to spend on marketing. We look at the productivity of that, and when the marginal contribution drops below the marginal cost, we stop doing whatever it is. So where we see opportunities where additional investment will cause us to grow faster, we will absolutely take them. One of the great things about our business is given the high levels of automation, we haven't really added. We've added some headcount to build out.

Speaker #3: So, if, for example, we had a great, say, commercial opportunity with Carrington Labs and we had to spend in order to convert them and implement it, we would do that in a second.

Speaker #3: With marketing, we don't run to a specific amount of money we want to spend on marketing. We look at the productivity of that.

Speaker #3: And when the marginal contribution drops below the marginal cost, we stop doing whatever it is. So, where we see opportunities where additional investment will cause us to grow faster, we will absolutely take them.

Speaker #3: One of the great things about our business is, given the high levels of automation, we haven't really added—we've added some headcount to build out—we did a big replatforming of the business.

Jamie Twiss: We did a big re-platforming of the business, and we've added some new functionality, but we haven't really had to add headcount to deal with the growth in the user base, the number of advances, and so on. So, we'd only add cost if we were confident it's going to be productive.

Speaker #3: And we've added some new functionality, but we haven't really had to add headcount to deal with the growth in the user base, the number of advances, and so on.

Speaker #3: So, we would only add cost if we were confident it was going to be productive.

Speaker #1: All right. One here from Luke Alexander. Hi, Jamie. Congratulations to the team on a fantastic result. Given the changes to your existing models and the upcoming product expansion, how do we not get to a doubling of NPAT next year?

James Lennon: Great. One here from Luke Alexander. "Hi, Jamie. Congratulations to the team on a fantastic result. Given the changes to your existing models and the upcoming product expansion, how do we not get to a doubling of NPAT next year? Adding AUD 12 million in interest profitability alone moves the needle towards double significantly. Is this the right way to think about it?

Speaker #1: Adding $12 million in interest profitability alone moves the needle towards double significantly. Is this the right way to think about it?

Speaker #3: Well, I think without making a forecast, if you want to add a double-digit number from the impact of the repricing onto the current cash NPAT, you're pretty close.

Jamie Twiss: Well, I think without making a forecast. If you want to add a double-digit number from the impact of the repricing onto the current Cash NPATs, you are pretty close to doubling, and then you will make whatever assumptions you want to about growth. Obviously, we are not forecasting a doubling of profit. It would be certainly nice if we had 3 years of doubling every year, but we do not have a more specific forecast than that. You are not thinking about it the wrong way. There is no error in the way you framed your questioning at all.

Speaker #3: Doubling, and then you'll make whatever assumptions you want to about growth. Obviously, we're not forecasting a doubling of profit—it would certainly be nice if we had three years of doubling every year.

Speaker #3: But we don't have a more specific forecast than that. But you're not thinking about it the wrong way. There's no error in the way you're framing your question.

Speaker #1: All right. And one more from an anonymous participant: As personal loans become a larger part of the receivables book, and have a longer duration than pay advance, what does this mean for funding requirements, funding costs, and available headroom?

James Lennon: All right. One more from an anonymous participant. "As personal loans become a larger part of the receivables book and have a longer duration than Pay Advance, what does this mean for funding requirements, funding costs, and available headroom?

Speaker #3: So on the funding and the available headroom, as you noted, we got that new $100 million debt facility, which we're pretty excited about.

Jamie Twiss: On the available headroom. As Lamia noted, we have got that new AUD 100 million debt facility, which we are pretty excited about. We have the equity spare capacity to support the equity slice of that facility. That enables us to meaningfully scale the book. The book is close to 70 right now. When you add in some of the spare headroom and the equity slice of the new debt facility, I guess you double-ish from where we are just in terms of originations. Again, do your own calculations in a way that makes sense to you, but back of the envelope. I would be gravely disappointed if the thing that capped our ongoing growth was an inability to access more debt funding.

Speaker #3: We have the equity kind of spare capacity to support the equity slice of that facility, so that enables us to meaningfully scale the book.

Speaker #3: The book is sort of close to $70 right now. When you add in some of the spare headroom and the equity slice of the new debt facility, I guess we are, just in terms of originations.

Speaker #3: Again, do your own calculations in a way that makes sense to you. But back to the envelope. Now, I'd be gravely disappointed if the thing that capped our ongoing growth was an inability to access more debt funding.

Speaker #3: I think given the performance of the business, given the strong unit economics, given our kind of really tight control of credit and how we think about all of that, without kind of assuming anything, I think as we approach that 100 million dollar cap on the debt facility, we will of course be thinking about sources of funding and again, I'd be gravely disappointed if we didn't have assuming the business continues to perform the way it is, if we didn't have the ability to keep growing through that with new sources of funding.

Jamie Twiss: I think, given the performance of the business, given the strong unit economics, given our really tight control of credit and how we think about all of that. Without assuming anything, I think as we approach that AUD 100 million cap on the debt facility, we will, of course, be thinking about sources of funding. Again, I would be gravely disappointed if we did not have, assuming the business continues to perform the way it is, if we did not have the ability to keep growing through that with new sources of funding.

Speaker #1: Great. All right, two to go. Looking at the financial numbers, Beforepay seems to be performing meaningfully better than peers. Can you talk to what you are doing differently and how you are able to achieve these results while others can't?

James Lennon: Great. All right. Two to go. "Looking at the financial numbers, Beforepay seems to be performing meaningfully better than peers. Can you talk to what you are doing differently and how you are able to achieve these results while others can't?

Speaker #3: So I think, without referencing any specific peer and what other people can't do, I'll talk about two things that I think we can do.

Jamie Twiss: I think without reference to any specific peer and what other people can't do, I'll talk about two things that I think we can do. The first one is, and I come out of big banking, and we always heard a lot about automation and straight-through processing. But when we would look at the headcount and the variable cost for doing something, there were still lots of people doing things. There were people looking at loan applications, there were people kind of moving stuff through a process. We genuinely do not do that. We write rough numbers, 40,000 loans every single week, and essentially no human touches any of them. We have a small customer support team that basically has a bit of a help desk flavor for people who need that. But we don't have loan officers and things like that.

Speaker #3: The first one is, and I come out of big banking, and we always heard a lot about automation and straight-through processing. But when we would look at the headcount and the variable cost for doing something, there were still lots of people doing things.

Speaker #3: There were people looking at loan applications. There were people kind of moving stuff through a process. And we genuinely do not do that. So, we write, rough numbers, 40,000 loans every single week.

Speaker #3: And essentially, no human touches any of them. We have a small customer support team that basically sort of has a bit of a help desk flavor for people who need that.

Speaker #3: But there are no, sort of, like, we don't have loan officers and things like that. So the ability to do that loan is, first of all, enormously efficient.

Jamie Twiss: The ability to do that loan, first of all, enormously efficient, and second of all, just much better user experience. From the time you download the app, you can have money in your account. If you're fast at typing with your thumbs, it could be 5 minutes. We usually say 5 to 10 minutes, and that's just a better user experience, right? That immediate availability for certain types of funding is very competitive. I think that high level of automation and that real automation first build it and code digital-first mindset is tremendously important. Then I do think we have a genuinely distinctive capability around credit. Not just around credit, but around credit that is assessed, again, in this fully automated way.

Speaker #3: And second of all, just a much better user experience. So from the time you download the app, you can have money in your account—if you're fast at typing with your thumbs, it could be five minutes.

Speaker #3: We usually say five to ten minutes. And that's the better user experience, right? That immediate availability and certainty of funding is very competitive. So I think that high level of automation, and that real sort of automation-first, kind of 'build it in code, digital-first' mindset, is tremendously important.

Speaker #3: And then I do think we have a genuinely distinctive capability around credits, and not just around credit, but around credit that is assessed, again, in a fully automated way.

Speaker #3: When we look, we take bank transaction data, as many of you would know, and we calculate hundreds of different variables—some of them financial, some of them behavioral.

Jamie Twiss: When we look, we take bank transaction data, as many of you would know, and we calculate hundreds of different variables, some of them financial, some of them behavioral. We just get a much richer picture of the individual in a few seconds. As a result, we are able to make a much sharper tailored offer, which is both very compelling to the customer, but then, of course, protects us as well. I think those are two genuinely distinctive strengths of the group that are a real competitive moat that others have, for whatever reason, I think not been able to deliver at that same level.

Speaker #3: And we just get a much richer picture of the individual in a few seconds. As a result, we are able to make a much sharper, tailored offer, which is both very compelling to the customer but then, of course, protects us as well.

Speaker #3: I think those are two genuinely distinctive strengths of the group that are a real competitive moat, that others have, for whatever reason, I think, not been able to deliver at that same level.

Speaker #1: Great. All right. And it looks like we've got one last question, again from an anonymous attendee. It looks like it's on pay advance outlook. With pay advance already at significant scale, how much growth remains in the Australian market?

James Lennon: Great. All right. Looks like we've got one last question, again, from an anonymous attendee. It looks like it's on Pay Advance outlook. With Pay Advance already at significant scale, how much growth remains in the Australian market? Is future growth primarily coming from new customers, increased utilization, or higher advances per customer?

Speaker #1: Is future growth primarily coming from new customers, increased utilization, or higher advances per customer?

Speaker #3: Yeah, good question. So we're definitely not looking to increase the frequency with which people use the product. I think our view—again, we're a mission-driven organization.

Jamie Twiss: Yeah, good question. We're definitely not looking to increase the frequency with which people use the product. I think our view, again, we're a mission-driven organization. Our view has always been that people should borrow when they need to, and they will decide what is right for them. On the Pay Advance side, I think we do continue to add new customers at a reasonable clip. Of course, the average advance size has continued to go up as well. If we step back and look at the landscape of the Australian population, how many people there are, how many people, whether through our market research or in other ways, say that they sometimes need something to bridge between weeks or between a few months, or they couldn't raise AUD 500 in an emergency.

Speaker #3: Our view has always been that people should borrow when they need to, and they will decide what is right for them. On the pay advance side, I think we do continue to add new customers at a reasonable clip.

Speaker #3: And of course, the average advance size has continued to go up as well. If we step back and look at the landscape of the Australian population, how many people there are, how many people whether through our market research or in other ways, say that they sometimes need something to bridge kind of between sort of weeks or between a few months or they couldn't raise $500 in emergency, it's a very, very significant portion of the population.

Jamie Twiss: It's a very significant portion of the population, depending on who's asking and the nature of the question. It's often a bit under half. That, to me, would suggest there's an addressable market of millions and millions of people out there. As to how big Pay Advance gets in the Australian market, I think we will keep growing until we feel like we've reached the limits of it, and I don't think we've reached those limits yet. Now, having said all that, again, I think if we turn to the personal loan side, that one I think the line of sight to growth is very clear. That's an existing market.

Speaker #3: Depending on who's asking and the nature of the question, it's often a bit under. That, to me, would suggest there's an addressable market of millions and millions of people out there.

Speaker #3: As to how big Pay Advance gets in the Australian market, I think we will keep growing until we feel like we've reached the limits of it.

Speaker #3: And I don't think we've reached those limits yet. Now, having said all that, again, I think if we turn to the personal loan side, that one, I think the line of sight to growth is very clear.

Speaker #3: If we look at the side that's an existing market, and if we consider the size of that market, our right to compete there, and our ability to be equally disruptive—given our capability to process loans almost instantly for almost no cost, and to do so with a sharper point of view on credit—I think we are just at the beginning of a pretty significant growth journey there.

Jamie Twiss: If we look at the size of that market, our right to compete there, our ability to be equally disruptive given our ability to process loans almost instantly for almost no cost, and to do so with a sharper point of view on credit, I think we are just at the beginning of a pretty significant growth journey there.

Speaker #1: All right. Thank you, Jamie. That concludes the Q&A session. I will now hand it back to you for some closing remarks.

James Lennon: All right. Thank you, Jamie. That concludes the Q&A session. I will now hand it back to you for some closing remarks.

James Lennon: All right. Thank you, Jamie. That concludes the Q and A session. I will now hand it back to you for some closing remarks.

Speaker #3: Well, I'll finish where I started. So I do want to thank everybody who's joining us. And again, we do have a lot of new people on this call.

Jamie Twiss: Well, I'll finish where I started. I do want to thank everybody who's joining us. Again, we do have a lot of new people on this call, and we're delighted that you're interested. Again, it feels like a great time to get to know us, I hope. Then for those of you that have been with us for a while, then thank you very much for all the years that we've been traveling together on this journey, and I think we have reached a pretty meaningful inflection point with the company. As we've said, FY26 was a standout year for us. FY27 will be a significantly even better year. I think sets us up not just for a great year in FY27, but beyond.

Jamie Twiss: Well, I'll finish where I started. I do want to thank everybody who's joining us. Again, we do have a lot of new people on this call, and we're delighted that you're interested. Again, it feels like a great time to get to know us, I hope. Then for those of you that have been with us for a while, then thank you very much for all the years that we've been traveling together on this journey, and I think we have reached a pretty meaningful inflection point with the company. As we've said, FY 2026 was a standout year for us. FY27 will be a significantly even better year. I think sets us up not just for a great year in FY27, but beyond.

Speaker #3: And we're delighted that you're interested and again, it feels like a great time to get to know us. Help. And then for those of you that have been with us been with us for a while, then thank you very much for kind of all the years that we've been traveling together on this journey.

Speaker #3: And I think we have reached a pretty meaningful inflection point with the company. As we said, FY26 was a standout year for us. FY27 will be an even significantly better year.

Speaker #3: And I think this sets us up not just for a great year in FY27, but beyond. I'm really pleased with how everything we've been working on has come together, both to deliver this result and to set us up for the future.

Jamie Twiss: I'm really pleased at how everything we've been working on has really come together both to deliver this result and to set us up for the future. So thank you again, and we're excited about the year and years that lie ahead.

Speaker #3: So thank you again, and we're excited about the year and years that lie ahead.

Speaker #1: All right. Thank you, Jamie and Lavagna. And to all the participants, you may now disconnect.

James Lennon: All right. Thank you, Jamie and Lavanya, and to all the participants. You may now disconnect.

Speaker #3: Thank you.

Jamie Twiss: Thank you.

Operator 2: Goodbye

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