Key Highlights

  • Revenue increased 28% to $60.0 million, comprising 9% organic growth plus initial contributions from the ARC Europe and DTS acquisitions.
  • Underlying EBITDA reached $10.5 million, up 41% on the prior year, with EBITDA Margin expanding to approximately 17.5% from 15.9%.
  • Underlying NPATA increased 65% to $6.7 million, with underlying EPS up 45% to 1.4 cents per share.
  • The company disclosed that the ACCC has commenced Federal Court proceedings against two wholly owned subsidiaries, ARMA Group Holdings and Force Legal, which the company intends to defend.

Credit Clear Limited (ASX:CCR) share price was trading at $0.15, up 3.45% or $0.0050 on the day, as at 27 August 2026, 12:25pm, as the Australian technology and Debt collection provider announced its full year financial results for FY26. Revenue grew 28% to $60.0 million from $46.9 million in FY25, comprising organic growth of $4.0 million (9%) and initial contributions from the ARC Europe (6 months) and DTS (5 months) acquisitions of $9.1 million. On an annualised pro-forma basis for both acquisitions, FY26 revenue would be $70.0 million.

The company said organic growth was driven by continued digital-first platform adoption across its core Australian collections business, growth in the client base, and an increased share of wallet. Underlying EBITDA reached $10.5 million for FY26, a 41% improvement on FY25's $7.4 million, comprising organic growth of $1.3 million (17%) and initial contributions from the ARC Europe and DTS acquisitions of $1.7 million.

Margin Expansion Reflects Digital Collections Shift

FY26 delivered continued operating leverage, with underlying EBITDA margin increasing from 15.9% to approximately 17.5%, which the company attributed to disciplined cost management and a shifting channel mix toward higher-margin digital collections, which continue to grow at a rate that outpaces total revenue. Underlying NPATA reached $6.7 million, up 65% on the prior year, with Underlying EPS up 45% to 1.4 cents per share.

The company said AI-based tools are increasingly assisting agents in customer discussions, supporting the digital collections trend. Underlying operating cashflow increased 25% to $8.3 million, with net cash balances at the end of the period at $16.9 million.

UK Acquisitions Expand Addressable Market

During the year, Credit Clear completed two acquisitions: ARC Europe, a UK-based debt collection agency established in 2001, completed 1 January 2026 with initial consideration of $10.3 million in cash plus scrip and a deferred component payable at the second-year anniversary; and DTS (illion Digital Tech Solutions), a global SaaS digital collections and voice technology provider, completed 1 February 2026 for total consideration of $7.9 million. Both acquisitions are expected to be earnings-accretive from the first full year of ownership.

The company said the acquisitions align with its strategy of delivering technology-driven solutions while significantly expanding its Total Addressable Market, entering adjacent high-value sectors and diversifying revenue streams into recession-resilient industries including utilities, insurance and telecommunications. Entry into the UK market, estimated to be four times the size of the Australian market, is described by the company as providing a new medium-term growth platform, with initial feedback from both DTS and ARC Europe customers described as positive and Earnings ahead of expectations.

Capital Management and Share Buyback

The acquisitions were funded via a $20.75 million institutional Placement completed in October 2025, with notable support from Chair Paul Dwyer, alongside a new bank debt Facility arranged with ANZ Bank during the period to provide a balanced funding mix with prudent gearing levels. During the second half, the Group also enacted a share buy-back program, purchasing $7.7 million in shares, with a further allowance of up to 13 million shares remaining under the stated initial buy-back amount of 10% of issued shares.

The company said this Balance Sheet position delivers flexibility to execute on its growth strategy, including integration of recent acquisitions and geographic expansion. System integrations across DTS and ARC Europe with the company's digital platform are underway, with transition efforts focused on data migration and operational synergies.

ACCC Proceedings and FY27 Outlook

The company disclosed that the Australian Competition and Consumer Commission has commenced Federal Court proceedings against ARMA Group Holdings Pty Ltd and Force Legal Pty Ltd, wholly owned subsidiaries of Credit Clear, alleging contraventions of the Australian Consumer Law relating to debt collection communications sent between February 2022 and September 2025. Credit Clear, ARMA and Force Legal continue to deny the allegations and intend to defend the proceedings, with a further case management hearing listed for 16 October 2026.

For FY27, the company anticipates revenue in the range of $73.0 million to $77.0 million and underlying EBITDA in the range of $12.0 million to $14.0 million, with a skew to second-half performance consistent with prior periods. The company said this guidance assumes no material operational impact from the ACCC proceedings, and that at present those proceedings have not materially impacted financial results.

Conclusion

Credit Clear's FY26 results show revenue and earnings growth accelerating on the back of both organic gains in its core Australian digital collections Business and the initial contributions from its ARC Europe and DTS acquisitions, which together provide a platform for expansion into the larger UK market. While the company's FY27 guidance points to continued growth, the disclosed Federal Court proceedings brought by the ACCC against two of its subsidiaries introduce a legal contingency that the company says has not yet affected financial performance but which will be a matter to monitor as the case management process progresses through the second half of 2026.