Earlypay (ASX:EPY) FIU Climbs 23% and FY27 Underlying NPAT Guidance Points to 30-40% Growth

Sonal Goyal

27 August 2026 02:03 PM AEST

Earlypay (ASX:EPY) FIU Climbs 23% and FY27 Underlying NPAT Guidance Points to 30-40% Growth

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Key Highlights

June 2026 Funds In Use reached $307.8 million, up 23% on FY25, the highest level in more than three years.
Net Revenue increased 7% to $36.0 million, with underlying NPAT of $3.7 million and underlying EPS of 1.4 cents, meeting revised guidance.
FY27 guidance points to underlying NPAT of $4.8-5.2 million, representing approximately 30-40% growth on FY26.
A fully franked final Dividend of 0.18 cents per share was declared, representing substantially all retained earnings.

Earlypay Limited (ASX:EPY) share price was trading at $0.14, up 16.67% or $0.020 on the day, as at 27 August 2026, 11:30am AEST, as the company announced its FY26 results, reporting June 2026 Funds In Use of $307.8 million, up 23% on FY25 and the highest level in more than three years. Net revenue was $36.0 million, up 7%, while underlying NPAT was $3.7 million with underlying EPS of 1.4 cents per share, delivering the company's revised guidance.

The company said FY26 earnings were below original expectations despite portfolio growth and higher net revenue, with the reduction in underlying earnings principally reflecting higher Equipment Finance Credit costs, lower than expected Invoice Finance FIU in the first half, and Investment in product, distribution and the new Invoice Finance platform. Trading strengthened through the fourth quarter of FY26, with that momentum continuing into FY27.

Invoice Finance and Equipment Finance Portfolio Performance

Invoice Finance June 2026 FIU increased 7% to $134 million, with growth strengthening toward year-end, supported by new client facilities, increased use of existing facilities and client attrition below historical levels. Margins remained consistent, while Credit Loss Expense was 0.81% of FY26 FIU, broadly in line with FY25. The company said Confidential Invoice Finance is enabling it to serve larger, stronger SMEs.

Equipment Finance June 2026 FIU increased 39% to $174 million, with fourth-quarter originations of approximately $35 million the highest quarterly level in more than four years, providing a stronger recurring income base entering FY27 given typical five-year Loan terms. Credit Loss Expense increased to 1.53% of FY26 FIU from unusually low prior-period levels, which the company said remains consistent with its through-the-cycle expectations despite being elevated.

Platform Investment Complete, Resources Redirected to Growth

Earlypay completed the final migration of its Invoice Finance clients in August 2026, consolidating three legacy systems onto a single platform connected to its client technology and cloud-accounting integrations. The new platform is intended to reduce complexity, allow the company to support more clients efficiently, and free the technology team to focus on growth, automation and improving the broker and client experience.

Core operating expenses are expected to be flat to lower in FY27 than FY26, despite more resources being directed toward growth. The company has also invested in AI-assisted development capability, which it said has substantially shortened development times, allowing internal tools to be built and improved in weeks rather than months, with a single credit assessment process for Invoice Finance, Trade Finance and Equipment Finance currently under development.

Capital Management and Rising Dividend Capacity

During FY26, Earlypay deployed $4.9 million through its on-market share buyback, reducing shares on issue by approximately 10%, from 272.2 million to 245.1 million. At 30 June 2026, net tangible assets were 14.76 cents per share, compared with a share price of 12.0 cents on 26 August. The company said the Timelio customer relationship Amortisation concluded in May 2026 and the Invoice Finance platform migration is now complete, meaning the material amortisation and implementation expenses associated with these items will not recur in FY27.

The Board declared a fully franked final dividend of 0.18 cents per share, representing substantially all retained earnings. As statutory earnings move closer to underlying earnings, the company said Retained Earnings and dividend-paying capacity are expected to increase materially, with the Board expecting to move toward paying approximately 70% of statutory NPAT as fully franked dividends over time.

Conclusion

Earlypay's FY26 results show a company that expanded its lending portfolio meaningfully across both Invoice Finance and Equipment Finance, even as underlying earnings fell short of original expectations due to higher Equipment Finance credit costs and platform investment costs. With the Invoice Finance platform migration now complete, core operating expenses expected to be flat to lower in FY27, and a substantially larger Funds In Use base heading into the new financial year, the company's guidance of 30-40% underlying NPAT growth in FY27 will depend on sustaining the trading momentum seen through the fourth quarter of FY26 and into the new financial year.

FAQs

Q: How much did Earlypay's Funds In Use grow in FY26?

A: June 2026 Funds In Use reached $307.8 million, up 23% on FY25, the highest level in more than three years.

Q: Why were Earlypay's FY26 earnings below original expectations?

A: The reduction reflected higher Equipment Finance credit costs, lower than expected Invoice Finance FIU in the first half, and investment in product, distribution and the new Invoice Finance platform, though the company still delivered its revised guidance.

Q: What is Earlypay's guidance for FY27?

A: The company guided to underlying NPAT of $4.8 million to $5.2 million, representing approximately 30-40% growth on FY26, and underlying EPS of approximately 2.0 cents.

Q: What dividend did Earlypay declare for FY26?

A: The Board declared a fully franked final dividend of 0.18 cents per share, representing substantially all retained earnings.

Q: Has Earlypay completed its platform migration?

A: Yes, the company completed the final migration of its Invoice Finance clients in August 2026, consolidating three legacy systems onto a single platform, with the associated implementation costs not expected to recur in FY27.

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