• Net profit before tax of $2.8m and EBITDA of $5.5m
• Revenue increased 12% year-on-year to $19.7m
• Net defaults declined 13% to 1.1% of advances

Beforepay Group Limited (ASX: B4P) has released its results for the half-year ended 31 December 2024 (H1 FY25). The company achieved a net profit before tax (NPBT) of $2.8m and EBITDA of $5.5m. Beforepay Group revenue increased by 12% year-on-year (YoY) from $17.6m in H1 FY24 to $19.7m in H1 FY25, finishing with a strong holiday season in November and December. Net defaults declined to 1.1% down 13% YoY reflecting continued improvements to limit management and upgrades to the credit model. The net defaults were supported by recoveries of $4.3m. Net transaction margin increased by 18% to $11.8m in H1 FY25 (H1 FY24: $10.1m), driven by growth in advance volumes and lower net defaults. The company achieved record active users of 257,627 (H1 FY24: 235,644), with customer acquisition costs (CAC) of $39 (H1 FY24: $31), reflecting continued success in attracting new customers. Operating expenses increased to $8.8m from $7.7m in the previous period primarily due to a one-off non-cash adjustment relating to share-based payments. Beforepay maintained a strong balance sheet with an underlying cash on hand balance of $18.3m and equity position of $35.6m. The company launched its new Personal Loan product in Q2 FY25, offering customers access to larger sums over a longer period than the Pay Advance product. Carrington Labs, the company's enterprise software division, completed a fully implemented solution for one of its US-based clients and has been selected to join the Mastercard Start Path Accelerator program.

The company achieved a net profit before tax (NPBT) of $2.8m and EBITDA of $5.5m for the half-year ended 31 December 2024.