Moneyme has delivered strong growth metrics in its Moneyme Q2 Trading Update (ASX: MME), with the digital lender’s loan book reaching $1.75 billion at 31 December 2025, up 26% on the prior corresponding period. Gross revenue for the quarter climbed to $60 million, representing 19% growth year-on-year, while loan originations reached $275 million, up 18% on 2Q25.
The company reported an operating cash profit of $10 million in 1H26, maintained despite increased investment in marketing and product development. The Autopay secured car loan book reached the $1 billion milestone during the quarter, with secured assets comprising 61% of the total loan portfolio.
| Metric | 2Q26 | 2Q25 | Change |
|---|---|---|---|
| Loan book | $1.75bn | $1.39bn | +26% |
| Gross revenue | $60m | ~$50m | +19% |
| Loan originations | $275m | $233m | +18% |
| Net credit losses | 2.9% | 3.7% | -0.8% |
Revenue growth outpacing origination growth signals improving unit economics, with the company’s strategy to balance product mix and credit quality delivering measurable results. The expansion demonstrates the digital lending platform’s ability to scale while maintaining disciplined underwriting standards.
Credit quality strengthens with net losses falling to 2.9%
Credit performance improved materially during the quarter, with net credit losses declining to 2.9% from 3.7% in 2Q25. The 90+ day arrears metric fell 51 basis points to 96 basis points, while the average credit score of borrowers rose to 799 from 778 a year earlier.
Risk-adjusted net interest margin (RNIM) expanded to 2.1% for the quarter, compared to the 1.5% FY25 average, reflecting both improved credit performance and lower funding costs. The secured asset ratio remained stable at 61%, providing portfolio diversification and downside protection.
Key credit metrics demonstrating portfolio improvement:
- Net credit losses: 2.9% (vs 3.7% in 2Q25)
- 90+ day arrears: 96bps (vs 147bps in 2Q25)
- Average credit score: 799 (vs 778 in 2Q25)
- Risk-adjusted NIM: 2.1% (vs 1.5% FY25 average)
The strengthening credit metrics while growing the loan book demonstrates disciplined underwriting practices. Higher average credit scores and declining arrears rates support margin expansion, with the company targeting customers with above-average credit profiles through its digital-first lending platform.
Understanding risk-adjusted net interest margin
Risk-adjusted net interest margin measures net interest margin minus credit losses as a percentage of the average loan portfolio. This metric provides a clearer picture of true lending profitability after accounting for defaults and write-offs.
RNIM rising from 1.5% to 2.1% indicates the business is approaching sustainable economics, with the spread between interest income and total costs (including losses) widening. For digital lenders, RNIM expansion signals the lending model is maturing and can support profitability as scale increases.
$755 million in new funding facilities secured
Moneyme strengthened its capital position through two significant funding transactions during the quarter. In November 2025, the company completed a $455.4 million Autopay asset-backed securities (ABS) transaction, marking its second public capital markets deal in the auto loan asset class for FY26.
The Class A1 notes in the transaction received AAA ratings from both Fitch Ratings and S&P Global, validating portfolio quality. The securitisation delivers improved capital efficiency and a lower cost of funds, with favourable terms reflecting the company’s growing loan book and strong portfolio performance.
In December 2025, Moneyme established a new $300 million credit card warehouse facility with a leading global bank and domestic institutional credit fund. The facility provides significantly improved pricing terms compared to existing credit card funding arrangements, with the ability to upsize to support further growth.
Key funding developments:
- Autopay ABS transaction: $455.4 million completed 27 November 2025, with AAA ratings on senior notes from Fitch and S&P Global
- Credit card warehouse: $300 million facility with materially better pricing, available February 2026 subject to conditions precedent
- Total funding capacity: $1.1 billion in undrawn facility limits across all funding lines
Access to capital markets at competitive rates removes a key constraint on growth, with AAA ratings on senior tranches providing validation of underwriting quality and portfolio performance. The expanded funding capacity positions the company to support both Autopay expansion and the new credit card product launch scheduled for 2H26.
Luxury Escapes partnership and new products set up 2H26 growth
Moneyme entered an exclusive partnership with Luxury Escapes to issue Luxury Escapes-branded credit cards in the Australian market, targeting launch in the first half of 2026. The partnership provides access to Luxury Escapes’ established customer base in the travel and lifestyle segment.
Pilot testing of the company’s new credit card product is reportedly well progressed, with launch planned for 2H26. The company completed integration of its Horizon platform with Episode Six (E6), enabling real-time card processing, advanced automated account management, and enhanced fraud controls.
Autopay expanded into the private car sales market during the quarter, successfully launching technology enabling brokers to finance private vehicle purchases. The extension addresses more than half of all used car sales in Australia, significantly expanding the addressable market beyond traditional dealership channels.
A PayTo pilot launched within the Horizon platform alongside new repossession and insurance modules, optimising collections workflows and improving operational efficiency. The company also refined Autopay credit settings, implementing what management described as a step change in advanced credit decisioning accuracy.
Key product and partnership developments:
- Luxury Escapes partnership: Exclusive issuer of co-branded credit cards in Australian market
- Autopay private sales: Live in market, addressing >50% of used car sales segment
- E6 integration: Real-time card processing capability deployed
- PayTo pilot: Operational efficiency improvements in collections
- New credit card: Pilot testing advanced, targeting 2H26 launch
What is digital lending and why does scale matter?
Digital lending uses technology-driven credit decisioning to automate loan approvals and settlements. Moneyme’s platform can make near real-time credit decisions and settle loans within minutes, compared to traditional lenders that may take days or weeks.
The company targets borrowers with above-average credit profiles (average score 799), using data analytics to assess risk and price loans accordingly. Digital lenders benefit from operating leverage as loan books grow, since fixed technology and platform costs can be spread across larger volumes without proportional increases in operating expenses.
For Moneyme, the platform’s ability to support significantly larger volumes without equivalent cost growth creates a path to profitability as the $1.75 billion loan book continues expanding. The improving risk-adjusted margins demonstrate this operating leverage taking effect.
Path to profitability in sight
Management expressed confidence in delivering FY26 strategic priorities, with the company on track or ahead across all five focus areas. The combination of scale growth, improving credit metrics, and expanded funding capacity supports the path to sustainable profitability.
CEO Commentary
“MONEYME delivered strong second-quarter growth across key metrics, reflecting disciplined execution of our strategy. The loan book grew by more than $100m since the previous quarter, driven by high-quality, predominantly secured assets and strong revenue. We continued to invest in growth, with normalised NPAT improving as scale increased. Our risk-adjusted net interest margin strengthened, supported by a lower cost of funds and reduced credit losses. Our brand presence continues to expand, our scale is increasing, and our new product roadmap is strong, which includes the launch of a white-labelled credit card with Luxury Escapes. We have further strengthened our funding position through a $455.4m Autopay ABS transaction and a new $300m credit card warehouse facility with a global bank. The progress being made is very exciting and we remain confident in delivering our FY26 priorities,” said Clayton Howes, Managing Director and CEO.
Subject to market conditions and continued strategy execution, the company expects to reach normalised NPAT breakeven “in the short term”. The improving RNIM, now at 2.1% compared to 1.5% for FY25, indicates the business model is approaching sustainable economics.
The 2H26 period will see continued rollout of the product strategy, including the new credit card offering and expanded Autopay capabilities. These initiatives support continued loan book growth while maintaining the balanced asset mix between secured and unsecured lending.
The Moneyme Q2 Trading Update (ASX: MME) demonstrates momentum across key financial and operational metrics. The $1.75 billion loan book, $60 million quarterly revenue, and 2.9% net credit losses represent material improvements year-on-year. Strengthened funding capacity of $1.1 billion in undrawn facilities positions the company for continued expansion.
Second-half catalysts include the credit card product launch, Luxury Escapes partnership commercialisation, and continued Autopay penetration into private car sales. Management’s guidance pointing to near-term normalised NPAT breakeven represents a potential inflection point as the digital lending platform reaches profitable scale.
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