• Lower than expected Funds in Use for Invoice Finance
• Strong new Invoice Finance client settlements expected in FY26
• Equipment Finance Funds in Use growing steadily with attractive margins
• Discussions ongoing for potential change in control transaction

Earlypay Ltd (ASX: EPY) provided an update on its year-to-date trading performance and outlook for FY25. The key points include:- Invoice Finance Funds in Use (FIU) in H2 has been lower than expected due to lower usage by existing clients, increased attrition and less than expected FIU from new clients.- New Invoice Finance client settlements are expected to be strong into the end of the financial year, supporting FIU and income in FY26.- Equipment Finance FIU is growing steadily at attractive margins.- Trade Finance FIU continues to reduce as planned, and the income contribution from this product in H2 is significantly less than H1.- Credit performance of the portfolio remains strong in all products.- The remaining $5m of the corporate loan was repaid in April, leaving no debt at a corporate level.The company's Underlying Earnings Per Share (EPS) for FY25 is now expected to be 1.81 cps, down from previous guidance of 2.2 cps, mostly due to lower-than-expected Funds in Use for Invoice Finance.Earlypay expects to have approximately $8m (~3.0 cps) of surplus capital at the end of FY25 and is reviewing options to maximize shareholder value. Discussions relating to a potential change in control transaction for the company are ongoing, although there is no guarantee a transaction will take place. Given the possibility of a transaction, the company will not resume the share buyback for the time being.

Underlying Earnings Per Share (EPS) for FY25 is expected to be 1.81 cps, down from previous guidance of 2.2 cps.