Wisr Limited (ASX: WZR) has reported substantial momentum in its Q2FY26 quarterly update, with Wisr loan book growth accelerating to $928.5 million, representing a 23% year-on-year increase. The fintech lender’s loan originations surged 76% to $164.2 million, driving revenue growth of 16% to $26.5 million for the quarter ending 31 December 2025.
The quarterly update reveals sustained expansion across both personal and secured vehicle loan segments, with origination volumes increasing 12% quarter-on-quarter. Management has upgraded FY26 guidance following capital initiatives completed in November 2025, now targeting Cash NPAT profitability in H2FY26.
The loan book expansion from $756.8 million in Q2FY25 demonstrates Wisr’s ability to capture market share within the Australian consumer lending sector. Quarter-on-quarter growth of 7% from $867.6 million in September 2025 indicates continued acceleration through the first half of FY26.
Credit quality improves as growth accelerates
Wisr has achieved material improvements in credit performance metrics whilst simultaneously expanding its loan book, a combination that signals disciplined underwriting standards. The company’s 90+ day arrears rate declined to 1.13%, down 42 basis points from 1.55% in Q2FY25, whilst net losses decreased 57 basis points to 1.15% from 1.72% in the prior corresponding period.
The loan book’s average credit score increased to 807 from 798 a year earlier, remaining stable compared to the prior quarter. This improvement reflects Wisr’s focus on attracting higher-quality borrowers whilst maintaining competitive origination volumes.
| Metric | Q2FY25 | Q2FY26 | Change |
|---|---|---|---|
| 90+ Day Arrears | 1.55% | 1.13% | -42 bps |
| Net Losses | 1.72% | 1.15% | -57 bps |
| Average Credit Score | 798 | 807 | +9 points |
Growing a lending portfolio whilst simultaneously improving credit metrics demonstrates sustainable expansion rather than growth achieved through relaxed underwriting standards. The combination creates operating leverage, where each additional dollar of originations contributes more profitably to the bottom line due to lower expected losses.
Net losses improved 48 basis points quarter-on-quarter from 1.63% in Q1FY26, indicating the credit performance trajectory continues strengthening. The company attributes these outcomes to disciplined credit settings and a robust arrears management framework.
Personal and secured vehicle loans both firing
Personal loan originations reached $106.2 million, representing 95% year-on-year growth and constituting the majority of total originations. The near-doubling of personal loan volumes demonstrates strong demand for Wisr’s core product offering.
Secured vehicle loan originations contributed $58.0 million, up 48% year-on-year. Key drivers include:
- Product diversification beyond unsecured lending
- Competitive positioning in the secured vehicle finance market
- Lower credit risk profile supporting portfolio quality
The dual-product growth strategy provides diversification benefits whilst addressing different customer segments within the consumer lending market.
What is Net Interest Margin and why it matters for fintech lenders
Net Interest Margin (NIM) represents the difference between interest income earned on loans and interest costs paid for funding, expressed as a percentage of interest-earning assets. For fintech lenders like Wisr, NIM directly determines the profitability of each loan originated.
A fintech lender borrows funds through warehouse facilities or issues asset-backed securities, then lends those funds to consumers at higher rates. The spread between these rates, adjusted for funding costs and defaults, represents the net interest margin. A lender charging customers 11% whilst paying 6% for funding achieves a 5% gross margin before accounting for losses and operating expenses.
Wisr’s quarterly portfolio NIM reached 5.30% in Q2FY26, improving 4 basis points from 5.26% in the prior quarter, though down 63 basis points from 5.93% a year earlier. Management noted the year-on-year decline reflected temporarily higher undrawn costs associated with the commencement of Warehouse 3, which began to unwind in the second half of Q2FY26.
The sequential improvement signals recovering unit economics as warehouse utilisation increased and restructuring benefits materialised. Portfolio yield remained broadly stable at 11.08%, compared to 11.14% in Q1FY26 and 11.20% in Q2FY25, demonstrating disciplined pricing despite higher average credit quality.
Balance sheet strengthened through capital initiatives
Wisr completed a $10.6 million equity capital raise in November 2025, with proceeds primarily deployed to strengthen the balance sheet and support origination growth. The company applied $7.5 million to repay its corporate debt facility whilst retaining capacity for continued loan book expansion.
Concurrent with the equity raise, Wisr refinanced its corporate debt facility, achieving a material reduction in the interest margin. At 31 December 2025, $27.5 million was drawn from the $50 million facility, with $10.0 million committed and $12.5 million uncommitted capacity remaining.
The company’s three warehouse facilities now maintain a total commitment of $767 million, with $165 million in undrawn capacity. Management reduced facility limits from $917 million in September 2025 to optimise commitment fees and reflect increased ABS transaction cadence.
Capital structure following Q2FY26 initiatives:
- Unrestricted cash: $16.3 million (up from $15.3 million in September 2025)
- Corporate debt facility: $50 million total capacity, $27.5 million drawn
- Warehouse facilities: $767 million commitment, $602 million utilised
- Total funding capacity positioned to support continued origination growth
Lower funding costs flow directly to net interest margin, supporting the pathway to profitability. The balance sheet restructuring provides management confidence in achieving upgraded guidance targets.
Upgraded guidance targets H2FY26 Cash NPAT profitability
Following the capital initiatives and sustained operational momentum, Wisr upgraded its FY26 guidance in November 2025. The company now expects to achieve Cash NPAT profitability in H2FY26, an acceleration from previous guidance.
“These initiatives have accelerated our pathway to profitability, leading us to upgrade our FY26 guidance in November 2025, with Cash NPAT profitability now expected in H2FY26,” said Andrew Goodwin, Chief Executive Officer.
The upgraded guidance reflects multiple converging factors: sustained origination growth, improving credit quality, margin expansion from refinanced facilities, and operating leverage as the loan book scales. The H2FY26 profitability target provides a near-term catalyst for investors monitoring the company’s progress towards sustainable earnings.
Looking ahead for Wisr
Wisr continues expanding its product suite and operational capabilities to support sustained growth. The company has achieved continued momentum in its recently launched secured personal loan product, which provides additional diversification beyond traditional personal loans and secured vehicle finance.
Operational enhancements implemented during the quarter include instant loan settlements to customers via the New Payments Platform (NPP), improving the customer experience through faster access to funds. The company also refreshed its partner portal experience, enhancing broker efficiency and supporting the indirect origination channel.
Customer satisfaction metrics remain strong, with Net Promoter Score reaching +82 during the quarter. Key operational highlights include:
- Secured personal loan product gaining traction in the market
- NPP instant settlements enhancing customer experience
- Partner portal upgrades supporting broker channel efficiency
- High customer satisfaction supporting retention and referral growth
The combination of product innovation, operational enhancements, and strong customer satisfaction positions Wisr to maintain origination momentum whilst defending credit quality. With improved unit economics, a strengthened balance sheet, and upgraded profitability guidance, the company has established multiple drivers supporting its investment thesis through FY26.
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