Credit Clear posts 24% earnings jump as digital collections surge
Credit Clear has reported Credit Clear Digital Collections Growth in its half-year results, with Underlying EBITDA climbing 24% to $3.6m despite revenue rising just 8% to $25.0m for the six months ended 31 December 2025. The Australian technology and debt collection provider’s EBITDA margin expanded from 13% to 14%, demonstrating the operating leverage inherent in its digital-first business model as the company transitions from growth-phase spending to profitability focus.
The company’s cash position strengthened to $20.9m, up $7.1m from the prior corresponding period, providing flexibility to fund recent acquisitions and ongoing digital innovation. Gross margins remained stable at 53% compared to 54% in 1H FY25.
The earnings improvement reflects disciplined cost management and a shifting channel mix towards digital collections, which continue to grow at a rate that outpaces total revenue growth. This operating leverage indicates the business model is scaling efficiently, with revenue growing 8% while earnings advance three times faster at 24%.
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What is digital debt collection and why does it matter?
Digital debt collection refers to technology-driven platforms that use AI intelligence, adaptive workflows, and automated communication channels to recover outstanding debts. This approach differs fundamentally from traditional call-centre-based methods that rely heavily on manual outreach.
The digital model delivers several operational and financial advantages:
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Lower cost per collection – Automated systems reduce the need for large call centre teams, improving unit economics as volume scales.
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Higher recovery rates – AI-driven workflows adapt collection strategies based on customer behaviour and payment history, optimising outreach timing and channel selection.
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Enhanced customer experience – Digital channels allow customers to manage repayments at their convenience through self-service portals, reducing friction and improving satisfaction scores.
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Data-driven insights – Digital platforms capture granular interaction data, enabling continuous improvement in collection strategies and customer segmentation.
For Credit Clear (ASX: CCR), this technology foundation enables the company to capture a greater share of client wallets while expanding margins as digital collections grow faster than overall revenue. The platform combines AI intelligence with adaptive workflows and digital engagement, creating a scalable model that improves profitability as volume increases.
Digital payments drive 29% growth in collections volume
Direct digital payments grew 29% to $84.4m in 1H FY26, significantly outpacing the company’s 8% revenue growth and highlighting the accelerating shift towards higher-margin digital channels. Active debt files referred increased to 3.0 million, up from 2.3 million in the prior corresponding period, representing a 30% increase in volume.
The company’s technological platform has delivered accelerated collection rates while improving customer satisfaction, as evidenced by a Net Promoter Score of +38 across 152,000 responses. This positive NPS indicates customers view the digital experience favourably compared to traditional collection methods.
Key digital metrics for 1H FY26:
- Direct digital payments: $84.4m (up 29% on pcp)
- Active debt files referred: 3.0 million (up 30% on pcp)
- Net Promoter Score: +38 (152,000 responses)
- Gross margin: 53% (stable vs 54% in pcp)
The digital channel growing nearly four times faster than total revenue indicates the business mix is shifting towards higher-margin activities. This trend underpins the EBITDA margin expansion from 13% to 14% and supports the investment thesis that operating leverage will continue improving as digital adoption scales.
Strategic acquisitions expand addressable market
In January 2026, Credit Clear completed two acquisitions that diversify revenue streams and expand geographic reach: illion Digital Tech Solutions Holdings Limited (DTS) and ARC Europe. Both transactions are expected to be earnings-accretive from the first full year of ownership.
DTS brings a well-established SaaS collections platform focused on early-stage digital collections, adding automated voice call capability to Credit Clear’s existing suite of AI intelligence, adaptive workflows, and digital engagement tools. The acquisition provides immediate scale and established relationships with blue-chip clients across recession-resilient sectors including utilities, insurance, and telecommunications.
ARC Europe, a UK-based debt collection agency, provides entry into the United Kingdom market and creates cross-selling opportunities by leveraging Credit Clear’s digital platform. The UK presence positions the company to replicate its Australian success in a new geographic market while diversifying away from domestic concentration risk.
Initial customer feedback from both DTS and ARC Europe has been positive, with early indications highlighting interest in utilising an expanded product suite. The company has commenced system integration across both platforms, focusing on data migration and operational synergies to ensure seamless service delivery. While integration processes are ongoing, early progress indicates potential for enhanced scalability, cost efficiencies, revenue synergies, and accelerated innovation in digital offerings.
The acquisitions significantly expand Credit Clear’s Total Addressable Market by entering adjacent high-value sectors, strengthening the company’s competitive position in industries that demonstrate resilience during economic downturns.
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FY26 guidance points to continued earnings momentum
Credit Clear has provided full-year guidance of $57.0m – $59.0m in revenue and $9.5m – $10.5m in Underlying EBITDA for FY26. The guidance reflects a skew toward second-half performance, incorporating 5-month and 6-month contributions from DTS and ARC Europe respectively.
Management noted that acquisition contributions in FY26 will be partially offset by increased investment to support integration activities and growth initiatives, specifically in the UK market. This investment phase positions the company for accelerated growth from FY27 onwards as integration completes and cross-selling opportunities materialise.
| Metric | 1H FY26 Actual | FY26 Guidance (Low) | FY26 Guidance (High) |
|---|---|---|---|
| Revenue | $25.0m | $57.0m | $59.0m |
| Underlying EBITDA | $3.6m | $9.5m | $10.5m |
The guidance implies second-half revenue of approximately $32.0m – $34.0m, representing acceleration from the $25.0m delivered in the first half. The EBITDA guidance suggests continued margin expansion as digital collections scale and acquisition synergies begin materialising.
For investors, the guidance indicates sustained earnings growth trajectory with acquisitions providing incremental upside from FY27 onwards as integration costs moderate and revenue synergies accelerate.
CEO outlines growth ambitions
CEO and Managing Director Andrew Smith emphasised the company’s positioning in the debt collection sector and the scalability advantages of its digital overlay.
Andrew Smith, CEO and Managing Director
“Our solid performance this half further highlights the comprehensive offering we are providing to customers in the debt collection space. The scalability of our offering and the importance of our digital overlay are highlighted in improving profitability and growth in digital collections that are outpacing revenue growth.”
Smith outlined the company’s strategic focus on replicating its domestic success internationally, targeting the UK, New Zealand, and other geographic markets. He noted that recent acquisitions validate Credit Clear’s leading position in the debt collection sector and provide platforms for geographic expansion.
The CEO’s commentary positions the next phase of growth around international expansion, leveraging the digital platform developed in Australia to capture market share in new jurisdictions. The company’s four-year track record in building sector leadership domestically provides a blueprint for international rollout.
Credit Clear’s 1H FY26 results demonstrate the operating leverage emerging as digital collections scale within its business model. The 24% earnings growth on 8% revenue growth validates the shift towards higher-margin digital channels, while the $20.9m cash position provides flexibility for integration activities and further growth initiatives. The second-half earnings skew, driven by acquisition contributions and continued digital adoption, positions the company for sustained margin expansion through FY26 and beyond as UK operations scale and integration synergies materialise.
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