MoneyMe Loan Book Exceeds $2 Billion with FY26 Originations Soaring 34% to $1.23 Billion

Loan Book Growth and Record FY26 Originations Demonstrate Strong Market Momentum

MoneyMe’s loan book growth to $2.08 billion underscores sustained expansion in Australia’s digital lending space, propelled by record FY26 originations of $1.23 billion—a 34% year-over-year increase. Q4 originations alone reached $368 million, a 57% rise compared to the previous year’s quarter, signaling accelerating momentum heading into FY27.

This growth reflects effective execution across origination channels and successful integration of diverse product lines. Gross revenue climbed 20% year-over-year to $249 million in FY26, with Q4 revenue increasing 27% to $70 million from $55 million in the prior corresponding period. These figures indicate MoneyMe’s technology platform and customer acquisition strategies are scaling efficiently to support revenue growth and position the company for sustainable profitability in FY27.

Enhanced Credit Quality and Improved Risk-Adjusted Margins Propel Profitability

MoneyMe posted a positive Normalised NPAT of $0.5 million in H2 FY26, marking a turnaround from a full-year loss of $4.1 million in FY26 and a $15.5 million loss in FY25. This improvement stems from strengthened credit quality and reduced credit loss provisions. The risk-adjusted net interest margin (RNIM) rose 0.9 percentage points to 2.4% in Q4 FY26 compared to 1.5% in the prior year quarter, reflecting better credit performance and lower funding costs.

Net credit losses declined to 2.4% in Q4 FY26 from 3.4% a year earlier, while the 90+ day arrears rate improved to 81 basis points from 109 basis points. Originations’ weighted average credit score remained within Equifax’s “Very Good” range (735–852), confirming the company’s success in targeting stronger credit profiles. Operating cash profit for FY26 was $11.0 million, down from $23.8 million in FY25 (which included a $10 million one-off benefit), reflecting investments in marketing and product development while sustaining positive cash flow to support growth.

$1.023 Billion ABS Issuance Bolsters Funding and Lowers Capital Costs

During FY26, MoneyMe completed $1.023 billion in asset-backed securitisation (ABS) issuances, including a landmark $365.4 million personal loan ABS transaction (MME PL ABS 2026-1) in May 2026. This largest personal loan securitisation to date attracted strong demand from domestic and international investors, underscoring confidence in MoneyMe’s credit origination and portfolio quality.

The securitisation program, comprising three public capital market deals, reduced reliance on traditional bank funding and lowered overall funding costs. Fitch Ratings upgraded two note tranches from the MME PL 2025-1 securitisation, validating the company’s underwriting and portfolio management. These funding enhancements provide a diversified capital base, enabling higher origination volumes and improved margins in FY27.

Net Interest Margin Compression Reflects Strategic Portfolio Shift

MoneyMe’s net interest margin (NIM) decreased by 1.0 percentage point year-on-year to 6.5% as of 30 June 2026, down from 7.5% previously. This margin compression results from a strategic shift in product mix, with secured assets declining from 62% to 59% of the portfolio, as unsecured personal loans and credit cards gain prominence as growth drivers.

Despite gross NIM compression, risk-adjusted profitability metrics confirm the shift is yielding higher-quality originations, reduced credit losses, and sustainable earnings. The FY26 NIM was also affected by one-off interest costs related to refinancing the Horizon 2018 Warehouse Facility, indicating some margin pressure is transactional rather than structural. Management remains confident that improved credit quality, lower funding costs, and AI-driven operational efficiencies will offset margin pressures.

AI Integration Enhances Operational Efficiency and Cost Management

MoneyMe accelerated AI deployment across credit decisioning, operations, customer service, finance, marketing, and creative content in Q4 FY26. This contributed to a 2.2 percentage point improvement in the operating cost-to-income ratio to 24.7%, alongside a 13% increase in originations and a slight reduction in headcount, demonstrating significant operational leverage.

Management prioritizes AI-driven automation as a strategic initiative to scale revenue faster than cost inflation. The simultaneous improvements in cost efficiency and loan growth highlight AI’s role in reducing manual overhead while preserving credit quality and customer experience, strengthening MoneyMe’s competitive position against banks and fintech rivals.

Expanding Product Ecosystem with Cashback Credit Card and Energy Upgrade Loan

In Q4 FY26, MoneyMe migrated its Freestyle credit card portfolio onto its proprietary Horizon platform, launching the Cashback Rewards Credit Card with steady early customer adoption. This migration consolidates credit card operations and enhances lifetime customer value through expanded offerings.

The Energy Upgrade Personal Loan was also introduced, offering discounted rates for homeowners financing energy-efficient improvements via accredited suppliers, aligning with MoneyMe’s ESG goals. Additionally, plans for a Luxury Escapes co-branded credit card aim to further diversify the product suite, boost customer engagement, and increase cross-selling opportunities.

Proprietary Horizon Platform Drives Competitive Advantage

MoneyMe’s Horizon platform remains a key differentiator in Australia’s digital lending market, integrating advanced AI across credit decisioning, customer service, and operations to accelerate loan origination and improve outcomes. Management highlights the platform as a durable competitive moat creating separation from traditional lenders and fintech peers.

The platform’s AI integration enables simultaneous scaling of originations, cost reductions, and credit quality improvements, delivering measurable economic and operational benefits. These technology investments reflect a long-term commitment to building a scalable proprietary fintech infrastructure.

Outlook: Pathway to Sustainable Profitability in FY27 and Beyond

CEO Clayton Howes stated MoneyMe "enters FY27 with its strongest competitive position to date," maintaining a "medium-term profitable outlook." The positive Normalised NPAT in H2 FY26 and enhanced risk-adjusted margins support this guidance. Record originations, improved credit quality, expanded ABS funding, and AI-driven operational leverage provide a solid foundation for scaling sustainable profitability.

Management describes FY26 as an "important inflection point," transitioning from growth-at-all-costs to a balanced focus on profitability and cash generation alongside origination growth. While specific forward guidance was not disclosed, investors will closely watch FY27 quarterly updates for sustained earnings momentum and disciplined capital management as MoneyMe scales.