Credit Clear delivers 8% revenue growth as digital collections surge
Credit Clear has reported its 1HFY26 results, posting revenue of $25.0m for the six months ended December 2025, representing 8% growth on the prior corresponding period. The debt resolution technology provider delivered underlying EBITDA of $3.6m, up 24% year-on-year, with the EBITDA margin expanding to approximately 14% (1HFY25: 13%). The company held $20.9m in cash at bank as at 31 December 2025.
- Revenue: $25.0m (up 8%)
- Underlying EBITDA: $3.6m (up 24%)
- EBITDA margin: ~14%
- Cash at bank: $20.9m
The improving profitability reflects ongoing cost efficiencies and a channel mix shift towards higher-margin digital collections. 37% of the additional revenue in 1HFY26 flowed through to underlying EBITDA, demonstrating operating leverage as the business scales.
Cash generated from operations was approximately $1.0m, down from $2.5m in 1HFY25, reflecting upfront investment in client acquisition and integration of recent acquisitions. Gross margins remained stable at 53% (1HFY25: 54%).
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What is debt collection technology and why does it matter?
Debt collection technology refers to AI-powered software platforms that help companies recover overdue payments through digital channels such as SMS, email, and online payment portals. Credit Clear (ASX: CCR) operates a white-label platform that automates much of the collections process, offering clients a scalable alternative to traditional call-centre models that rely on phone-based outreach.
Digital collections offer three key advantages:
- Faster recovery times through automated engagement and real-time payment options.
- Lower cost per collection by reducing reliance on manual labour.
- Improved customer experience via convenient, self-service repayment channels.
In 1HFY26, Credit Clear processed $84.4m in direct digital payments, up 29% on the prior corresponding period. The number of active debt files referred to the platform increased 30% to 3.0 million (1HFY25: 2.3 million), indicating growing client adoption of the digital-first approach.
Growing share of wallet with enterprise clients
Credit Clear reported continued expansion in client revenue, with 21 Tier-1 clients (defined as clients generating over $500k annually) maintaining their position from 1HFY25. However, average annualised revenue from these clients increased to $1.3m (1HFY25: $1.1m), demonstrating deeper engagement with existing large accounts. The company’s largest client now generates $4.6m in annualised revenue, up from $3.0m in the prior period.
The number of Tier-2 clients (revenue between $100k and $500k annually) grew to 59, up from 47 in 1HFY25. Average revenue per Tier-2 client rose to $223k (1HFY25: $208k), with the largest Tier-2 client contributing $483k (1HFY25: $366k).
| Client Tier | 1HFY25 | 1HFY26 | Change |
|---|---|---|---|
| Tier-1 Clients | 21 | 21 | Unchanged |
| Avg Revenue per Tier-1 | $1.1m | $1.3m | +18% |
| Largest Client Revenue | $3.0m | $4.6m | +53% |
| Tier-2 Clients | 47 | 59 | +26% |
| Avg Revenue per Tier-2 | $208k | $223k | +7% |
| Digital Payments Processed | $65.6m | $84.4m | +29% |
| Active Debt Files | 2.3m | 3.0m | +30% |
Management highlighted a case study involving a large insurance client that initially budgeted approximately $495,000 in revenue for a six-month period. Monthly revenue consistently exceeded initial budgets across all six months, with the client expanding its use of Credit Clear’s hybrid approach for more specialist collections. Estimated revenue for FY2026 from this client is now approximately $1.3m, compared to the initial budget of approximately $990k.
Once integrated and onboarded, revenue from these larger clients is reported as consistent and recurring, reducing customer acquisition costs and improving revenue visibility.
Strategic acquisitions extend global footprint
In January 2026, Credit Clear completed two strategic acquisitions: ARC Europe, a UK-based debt collection agency, and Digital Tech Solutions (DTS), a global SaaS provider of early-stage digital collections technology.
ARC Europe:
- Established in 2001 with trusted partnerships across financial services, health and leisure, insurance, and utility sectors.
- Expected to be earnings accretive in its first full financial year of ownership.
- Provides immediate scale and a long-standing UK customer base for expansion.
- Offers significant opportunity to overlay Credit Clear’s digital solution across ARC’s client base to drive operating leverage.
Digital Tech Solutions:
- 35-year track record with operations in the UK, Australia, New Zealand, USA, and Canada.
- Expected to take Credit Clear’s digital collections business from 5% to 17% of annualised revenue.
- Serves blue-chip clients including Energy Australia, HSBC, Vodafone, and GDF SUEZ.
- Early customer feedback has been positive, with indications of interest in utilising an expanded product suite.
Management also highlighted plans to expand the company’s business processing operations (BPO) in the Philippines at an accelerated rate to support customer acquisition and drive existing customer share of wallet.
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FY26 outlook points to continued momentum
Credit Clear has provided FY26 guidance of $57.0m to $59.0m in revenue and underlying EBITDA of $9.5m to $10.5m. The guidance includes five months of contribution from Digital Tech Solutions and six months from ARC Europe. Management stated that performance in 2HFY26 is expected to offset softer holiday trading conditions.
The guidance implies full-year revenue growth of approximately 22% to 26% compared to FY25, signalling confidence in the integration of recent acquisitions. Management noted that trading conditions remain supportive, with rising personal debt levels in Australia and increasing corporate focus on AI-driven collections capability.
The company plans to continue investing in sales teams across Australia and the UK to drive SaaS growth, with additional staff to be onboarded during the second half. FY26 contribution from acquisitions is expected to be partially offset by increased investments to support integration and growth initiatives.
Cash generation supports growth strategy
Credit Clear held $20.9m in cash at bank as at 31 December 2025, providing balance sheet capacity for ongoing integration and growth. Cash generated from operations was approximately $1.0m in 1HFY26, down from $2.5m in the prior corresponding period, reflecting upfront investment in client acquisition, integration costs, and expansion of the BPO division.
Gross margins remained stable at 53% (1HFY25: 54%), indicating consistent operating efficiency despite the investment cycle. The company’s underlying EBITDA margin improved to approximately 14% from 13% in 1HFY25, supporting management’s thesis of expanding operating leverage as the business scales.
Credit Clear is positioned as an integrated debt resolution provider benefiting from the structural shift towards digital collections. The company is growing revenue and expanding margins while extending its geographic reach through recent acquisitions. With rising personal debt levels, increasing corporate adoption of AI-driven collections, and supportive trading conditions, the company appears positioned to execute on its full-year guidance of $57.0m to $59.0m in revenue and $9.5m to $10.5m in underlying EBITDA.
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