• Underlying NPAT up 24% to $5.1m
• Underlying EPS up 30% to 1.9 cps
• Dividend of 0.65 cps, 100% of available Retained Earnings

Earlypay Ltd (ASX: EPY) has released its financial results for the 12-month period ending 30 June 2025 (FY25), reporting strong performance across key metrics. Underlying NPAT increased 24% to $5.1m, while underlying EPS grew 30% to 1.9 cps. Year-end Funds in Use (FIU) remained flat at $249.4m, with growth in the Equipment Finance (EF) portfolio offsetting declines in Invoice Finance (IF) and Trade Finance (TF). Net revenue margin expanded to 13.4%, up from 13.0% in the prior year, driven by repayment of corporate debt, lower cost warehouse funding, and a more diversified portfolio of smaller, higher-margin clients. Credit performance also improved, with Credit Loss Expense reducing to 0.75% from 1.58% in FY24. The company continued to invest in improving the referrer experience and promoting the benefits of its products, which supported growth in the EF portfolio and increased cross-selling between EF and IF. Looking ahead, Earlypay expects to have around $10m (~3.6 cps) of surplus capital available for capital management initiatives, including on-market buybacks, supporting organic growth, and potential bolt-on acquisitions. The Board intends to continue paying all Retained Earnings as fully franked dividends to shareholders until surplus capital is deployed. For FY26, the company expects Underlying EPS to be 15-20% higher than the FY25 underlying EPS.

FY26 Underlying Earnings per Share is expected to be 15% - 20% higher than FY25 underlying EPS.

The focus in FY26 is squarely on growing the IF and EF portfolios to maximise the operating leverage in the business and drive earnings and EPS higher.