• Wisr achieves EBITDA profitability for a financial half-year for the first time
  • The fintech says H1 FY24 was dedicated to revenue growth and EBITDA profitability
  • Company says its business model is now highly scalable with a growth focus


Special Report:  The Wisr share price has risen more than 12% today after announcing EBITDA profitability in H1 FY24, driven by expanding margins, prudential cash management and sustainable revenue growth.

Wisr (ASX:WZR) has achieved EBITDA profitability of $200,000 up in H1 FY24 from a loss of $900,000 on pcp with the consumer lender saying its business model is highly scalable with plans to recommence loan volume growth during H2 FY24.

It is the first time WZR has achieved EBITDA profitability for a financial half year.

Other H1 FY24 financial highlights for WZR include:

  • Revenue $48.1 million, an 11% increase on pcp
  • Portfolio net interest margin (NIM) of 5.34%, up from 5.23% on pcp
  • Front book December 2023 run rate NIM of 7.16%, up from 6.12% for December 22
  • Portfolio yield 10.51% with front book December 2023 run rate yield of 13.43%, up from 11.54% in December 2022
  • Opex $13.1 million, a 26% decrease on pcp


WZR chief executive Andrew Goodwin told Stockhead that H1 FY24 was all about revenue growth and EBITDA profitability.

“We were just over the line in terms of profitability, which is a good result in the sense we’re now at the point of effectively breakeven, which gives us a solid base to grow again, expand that profitability as we get to scale,” he says.

“We have shored up the business on the back of macroeconomic changes and we’re now ready to recommence growth which is particularly exciting.”

Goodwin says the H1 FY24 figures are all pointing in the right direction for future growth.

“We talk about a portfolio yield and a run rate yield, so our total portfolio shows the yield we make is 10.51% but if you look at our December run rate it’s 13.43%,” he says.

“So really what that says is as you scale, assuming run rate sort of levels, your yield and profitability will naturally expand as you grow.”


Quality not quantity in loan originations 

WZR says H1 FY23 loan originations were $103 million, a 66% decrease on pcp driven by deliberate loan volume moderation.

Consequently, the loan book was $847 million, an 8% fall with cumulative total loan originations were $1.7 billion, as at December 31, 2023.

WZR’s average portfolio Equifax credit score remained strong at 781 with stable 90+ day arrears 1.31%, up from 1.07% on pcp due to a decrease in, and a maturing of its loan book.

“Our higher yield has not been from taking on more risk in terms of the credit quality of our book,” Goodwin says.

“The average Equifax credit score on our book has been maintained.”


Wisr App enhancements yield results

Along with digital lending WZR is focused on improving its customers’ financial health and wellbeing.

During H1 FY23 the customer net promoter score was +78 and employee engagement score +75.

Ongoing App user experience enhancements delivered $11.3 million in additional loan repayments and an 86% increase in WZR loan customers’ monthly active usage during H1 FY24.

The App has facilitated the payment of $7.7 million in round ups on customer debt.

Furthermore, there’s been a 12% increase in rate estimates on the WZR platform.

Loan customers who engaged with the WZR platform were, on average, 13% further ahead on their loan repayments compared to those who didn’t engage.

The app was announced as the winner of WeMoney’s Best Mobile Experience Award for 2024.

Goodwin says ongoing investment in arrears and collections is a key priority for the fintech.

He says the app’s one-time payment feature supports the facilitation of both late payments by early-arrears customers and additional payments by proactive customers on performing loans.

“We’ve seen $11.3 million in additional payments made with this feature to date,” he says.

“Wisr continues to reimagine the consumer financial journey.

“Our enhancements to the Wisr Platform user experience have increased Wisr loan customers’ monthly active app usage by 86%, alongside a 12% increase in rate estimates.”


Strong capital position 

During H1 FY 24 WZR did its fourth ABS transaction – the $200 million Wisr Freedom Trust 2023-1 – with total term deals to date of $875 million.

“It’s a great testament to the business,” Goodwin says.

The company has undrawn funding capacity of $278 million with personal loan warehouse and secured vehicle loan warehouse facilities renewed for the customary one-year period.

WZR had unrestricted cash of $19.9 million, as at December 31, 2023.


Plans to ‘ramp up’ loan volume growth

Goodwin says WZR intends to recommence loan volume growth in H2FY24, subject to appropriate market conditions and maintenance of balance sheet strength.

“We want to start growing again and there’s going to be a ramp up phase but really commencing that ramp up phase is how I am looking at H2,” he says.

“What we’ve done in the last 12 months or so is recalibrate the business, get the loan unit economics correct, get our opex and processes under control and focus on profitability waiting for the time when we look to scale again.”

Goodwin says WZR was high growth pre-profit and is now moderated growth and profitable.

“We’re looking to build a highly profitable business and grow as well.”


This article was developed in collaboration with Wisr, a Stockhead advertiser at the time of publishing.  

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.