Highlights

  • MoneyMe (ASX:MME) expanded its Loan book and originations materially in FY26 while improving key credit-quality metrics.
  • The Horizon AI-driven Credit platform remains central to Underwriting across personal and vehicle finance.
  • Normalised profitability turned positive in the second half of FY26 as credit losses and funding costs improved.
  • Funding costs, net interest margins and the conversion to sustained statutory profitability remain key areas to monitor.

MoneyMe (ASX:MME) has spent the past year turning around what had been a loss-making growth story into one of the more improved credit-quality narratives among Australia's listed digital lenders. The company's FY26 results, covering the year to 30 June 2026 and released on 18 August 2026, showed its loan book surpassing $2 billion for the first time, record annual originations above $1.2 billion, and a statutory net loss cut by 40% — with normalised profitability turning positive in the second half.

For a Business that uses AI-driven credit decisioning, branded Horizon, to underwrite personal loans and vehicle finance, the combination of faster growth and improving credit quality is the key data point supporting the case that MoneyMe's technology-led lending model is maturing rather than simply chasing volume.

What Has Happened?

MoneyMe's FY26 annual results, lodged alongside its Appendix 4E, showed gross Revenue up around 20% to $248.8 million, from $208.0 million in FY25. The gross loan book grew 34% to $2.08 billion, with record loan originations of $1.23 billion, also up 34%.

Personal loans grew more than 50% to $791 million, now representing 38% of the portfolio, while the Autopay vehicle finance book grew around 30% to roughly $1.2 billion.

Statutory net loss after tax narrowed to $40.1 million, an improvement of 40% from a $66.6 million loss in FY25, while the company's preferred normalised net loss measure narrowed 74% to $4.1 million.

The second half of the year delivered a positive normalised net profit after tax of $0.5 million — the clearest signal yet that the underlying, non-cash-adjusted business is approaching sustainable profitability.

Understanding the Business

MoneyMe (ASX:MME) is a digital, non-bank consumer lender offering personal loans and vehicle finance through its Autopay Brand via both direct-to-consumer and white-label distribution channels.

The company underwrites credit using its proprietary Horizon AI-driven credit decisioning technology, which is designed to assess borrower risk and price loans more precisely than traditional manual underwriting approaches, while funding its loan book through a mix of Warehouse facilities and public and private securitisation.

The business model depends on three interlinked variables: growing loan originations, keeping credit losses low as the book scales, and managing funding costs — all of which showed improvement in FY26.

The planned launch of a Luxury Escapes white-label credit card in the first quarter of FY27 signals continued Diversification of MoneyMe's product and distribution mix beyond its core personal loan and auto finance products.

Financial and Operational Picture

Credit quality metrics improved across the board in FY26. Net credit losses fell to a record low of 2.4%, down from 3.4% in FY25, while the 90-plus day arrears ratio improved to roughly 0.8%, from 1.1% previously.

The average Equifax credit score across MoneyMe's loan book rose to 802, from 790 a year earlier, indicating the book is skewing toward higher-quality borrowers even as it grows.

On funding, MoneyMe's cost of funds fell to 6.6% from 7.1%, and total funding capacity expanded 44% to around $3.0 billion across 12 structures, following three asset-backed securitisation transactions totalling roughly $1 billion during the year.

Net interest Margin declined to 6.5% from 7.5% as funding mix and pricing pressure weighed on headline margin, though Risk-adjusted net interest margin — which nets out credit losses — improved to 2.4% from 1.5%, as better credit performance more than offset the lower headline margin.

For FY27, chief executive Clayton Howes guided to an average loan portfolio of around $2.2 billion and normalised net profit after tax ranging from breakeven to approximately $7 million.

Why This Matters

MoneyMe's FY26 result is significant because it shows the company growing its loan book by roughly a third while simultaneously improving credit quality — a combination that is harder to achieve than growth alone, since faster loan growth can often come with looser underwriting standards.

The move to second-half normalised profitability, after years of losses, is the clearest evidence yet that the AI-driven Horizon underwriting platform and funding diversification strategy are working as intended.

For a sector that has seen a number of digital lenders struggle to balance growth with credit discipline, MoneyMe's improving arrears and net credit loss ratios, alongside a materially expanded and diversified funding base, help address one of the more persistent concerns around non-bank lenders: reliance on volatile or concentrated funding sources during periods of rapid loan-book growth.

Industry Opportunity

Digital, non-bank lenders continue to compete with traditional banks in segments such as unsecured personal loans and point-of-sale vehicle finance, aided by faster approval processes, flexible underwriting technology and white-label Partnership distribution.

The addition of a white-label credit card product with consumer travel brand Luxury Escapes reflects a broader embedded-finance trend, where lenders partner with consumer brands to distribute credit products directly at the point of customer need.

As interest rates and cost-of-living pressures continue to shape consumer credit Demand in Australia, lenders with lower funding costs, stronger credit-risk technology and diversified distribution are better positioned to compete on both pricing and approval speed.

Potential Catalysts

The planned first-quarter FY27 launch of the Luxury Escapes white-label credit card is a near-term catalyst that could add a new origination channel and customer base.

Continued execution against FY27 guidance — an average loan portfolio of roughly $2.2 billion and normalised NPAT of breakeven to $7 million — will also provide a clear benchmark for upcoming results.

Further reductions in cost of funds as the expanded $3 billion funding capacity is utilised, and any additional improvement in credit-quality metrics as the loan book continues to season, would support the case that FY26's progress is continuing into the new financial year.

Risks Investors Should Consider

MoneyMe remains a leveraged, non-bank lender, meaning its Earnings are sensitive to funding costs, wholesale credit market conditions and the broader interest-rate environment, all of which affect both its Cost of Capital and consumer demand for credit.

While credit metrics improved materially in FY26, deterioration in Australian employment or household financial conditions could reverse recent gains in arrears and net credit losses, particularly in the personal loan segment.

Margin compression, reflected in the decline in net interest margin during FY26, is a risk if pricing pressure continues to outpace further reductions in funding costs.

The company also still needs to convert improving normalised profitability into sustained statutory profitability, given the remaining gap between the two measures.

What to Watch Next

Investors will likely focus on the FY27 first-half results for confirmation that the normalised profitability achieved in the second half of FY26 is continuing, along with progress on the Luxury Escapes white-label credit card launch.

Ongoing trends in loan-book growth, net credit losses, arrears and funding costs — all of which improved in FY26 — will be the key metrics for assessing whether MoneyMe's operating improvement is becoming sustainable.