Earnings release
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1 ACN 633 925 505 Suite 1, Level 9, 77 Castlereagh Street, Sydney NSW 2000 ASX Announcement (ASX: B4P) 28 January 2026 Beforepay Group Limited Q2 FY26 Quarterly Activities and Appendix 4C Cash Flow Report (Unaudited) Beforepay scales the business with disciplined investment in growth Beforepay Group Limited (the Company) (ASX: B4P) has released its Quarterly Activities and Appendix 4C for the quarter ended 31 December 2025 (Q2 FY26). Beforepay Group CEO, Jamie Twiss said, “This quarter saw strong increases in average advance size. Profit declined as a result of the usual holiday-season increase in defaults as well as investments in Carrington Labs and personal lending; we were pleased to announce a new Carrington Labs client as well as continued personal-loan growth.” Q2 FY26 Business Update ● Profitability: The Company had a Net Profit Before Tax (NPBT) of $0.3m, compared to $3.4m in the previous quarter. ● Advances: Quarterly advances reached $240m, up 17% on Q2 FY25, driven by an 18% increase in the average advance size to $470. ● Revenue: Revenue increased to $12.0m, up 18% YoY (year-on-year) underpinned by higher advance volume and larger advance sizes. ● Net defaults: Net defaults rose to 1.85%, up slightly from 1.75% in Q2 FY25. This is in line with the seasonal holiday trend. ● Net transaction margin (NTM): NTM increased to $5.9m in the quarter, up 22% YoY from $4.8m in Q2 FY25, driven by higher advances. ● Operating expenses: Increased by 11% to $5.2m from $4.6m in the prior quarter. This was driven by continued investments in Carrington Labs and in the personal-loan product, as well as increased marketing spend in the quarter. ● Active users: Increased 0.1% QoQ to 276,606. The average customer acquisition cost (CAC) in the quarter was $53. The Group continues to focus its acquisition efforts on higher-value customers as it improves its ability to forecast customer lifetime value and to reduce the acquisition of riskier and lower-value customers. ● Balance Sheet: The Company maintained a strong balance sheet with an equity balance of $43.9m and Total Cash of $17.5m as at Q2 FY26 (Q1 FY26 Total Cash of $19.2m). Total Cash included $9.1m of cash-at-bank and $8.4m of cash held in our funding and settlement accounts. Total Cash declined $1.7m QoQ due to an increase in the gross loan book from $55.8m to $60.9m. The mix of Total Cash shifted as a result of the timing of moving money between cash-at-bank and funding and settlement accounts. For personal use only
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2 ACN 633 925 505 Suite 1, Level 9, 77 Castlereagh Street, Sydney NSW 2000 ● Carrington Labs: The Company announced an agreement with Flexcar, the first and only month-to-month car lease company, and a partnership with Sea.Dev, a fintech company specialising in AI-powered financial document automation for small and medium-sized businesses. This further expands the range of customers that Carrington Labs services. Additionally, the Company further developed the Carrington Labs offering to include a Model Context Protocol (MCP) Server bringing compliant credit models into AI lending workflows. ● Personal Loans: Personal Loans continue to scale with 2,415 loans written to date, totaling $6.8m. ● Q3 FY26 trading to date has been in line with expectations. The Company expects margins to normalise as defaults decline following the holiday increase. Overview Q2 FY26 Q2 FY25 Q1 FY26 YoY Change % QoQ Change % Platform metrics Advances $240.0m $205.6m $226.4 17% 6% Average advance $470 $398 $446 18% 5% Active users (no. users)1 267,606 257,627 267,306 4% 0% Financial metrics Revenue $12.0m $10.2m $11.3m 18% 6% Net defaults % (of advances plus fees) 1.85% 1.75% 0.67% 6% 177% Net transaction margin $5.9m $4.8m $8.4m 22% (30%) Net transaction margin % (of advances) 2.45% 2.35% 3.69% 4% (34%) Operating expenses ($5.2m) ($3.6m) ($4.6m) 43% 11% NPBT $0.3m $1.1m $3.4m (69%) (90%) 1 Customers of Beforepay who have taken out an advance in the 12 months prior from the relevant date. This includes customers who have not yet repaid their most recent cash out and are not eligible to re-borrow until they have done so. For personal use only
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3 ACN 633 925 505 Suite 1, Level 9, 77 Castlereagh Street, Sydney NSW 2000 Net Transaction Margin and Operating Expenses ($m) By Quarter Cash and Equity Position In accordance with Listing Rule 4.7C, payments made to related parties and their associates included in item 6.1 of the Appendix 4C was $191,129 that comprised of payments made to Non-Executive Directors relating to salary and wages (inclusive of superannuation and applicable taxes withheld) and Director fees on standard terms. Investor Webinar The Company invites investors and shareholders to the accompanying webinar to be held today at 10.00am AEDT. To register please use this link. After registering, you will receive a confirmation email containing information about joining the meeting. This announcement has been authorised for release to the ASX by the Board of Beforepay Group Limited. 2 Equity position as at 31 December 2025 comprises issued capital, reserves and accumulated losses. Q2 FY26 Q1 FY26 Change Balance sheet Cash-at-bank $9,091,346 $14,133,418 ($5,042,072) Funding and settlement accounts $8,442,115 $5,057,578 $3,384,537 Equity position $43,921,9912 $43,078,450 $843,541 For personal use only
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4 ACN 633 925 505 Suite 1, Level 9, 77 Castlereagh Street, Sydney NSW 2000 For more information, please contact: Investors Media Jacqueline Pfenninger Noeleene Yap Investor Relations, Beforepay Group Marketing & Communications Manager, Beforepay Group Ph: 0447 301 111 Ph: 0489 995 082 investorrelations@beforepay.com.au mediaenquiries@beforepay.com.au About Beforepay Group Beforepay Group was founded in 2019 to support working Australians who have not been well-served by the traditional financial-services industry. Our lending arm, Beforepay, offers consumers an ethical, customer-friendly way to help manage temporary cash-flow challenges through small pay advances, as well as offering personal loans. Carrington Labs, our enterprise arm, enables banks, credit unions and fintechs to elevate their lending performance through deep credit risk insights that can help increase approval rates, cut defaults and grow margins. For more information visit www.beforepay.com.au and www.carringtonlabs.com Important notice This announcement contains selected summary information only and is provided for general information purposes only. It should be read in conjunction with Beforepay Group’s continuous disclosure announcements available here. Nothing in this announcement constitutes a representation or warranty, expressed or implemented, or financial or other advice and it is not to be relied upon in substitution for the recipient’s own exercise of independent judgment regarding Beforepay Group. Before making an investment decision, the recipient should obtain advice as it considers necessary or appropriate. To the maximum extent permitted by law, no member of the Beforepay Group accepts any liability for any loss whatsoever arising from the use of this announcement. This announcement includes information regarding past performance of Beforepay Group and investors should be aware that past performance is not and should not be relied upon as being indicative of future performance. Investors should note that certain financial data in this announcement is not recognised under the Australian Accounting Standards (‘AAS’) and is classified as ‘non-IFRS financial information’ under ASIC Regulatory Guide 230 ‘Disclosing non-IFRS financial information’. Beforepay Group considers that non-IFRS information provides useful information to users in measuring the financial performance and position of the Beforepay Group. The non-IFRS financial measures do not have standardized meanings under AAS and therefore may not be comparable to similarly titled measures determined in accordance with AAS. Readers are cautioned to not place undue reliance on any non-IFRS financial information and ratios in this announcement. All dollar values are in Australian dollars ($) unless stated otherwise. All figures are unaudited. Change percentages are calculated using unrounded figures and may differ slightly from a number calculated using rounded figures. For personal use only
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Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 1 + See chapter 19 of the ASX Listing Rules for defined terms. Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Name of entity Beforepay Group Limited ABN Quarter ended (“current quarter”) 63 633 925 505 31 December 2025 Consolidated statement of cash flows Current quarter $A’000 Year to date (6 months) $A’000 1. Cash flows from operating activities 241,253 475,137 1.1 Receipts from customers 1 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (426) (816) (c) advertising and marketing (1,377) (2,329) (d) leased assets (e) staff costs (2,258) (4,631) (f) administration and corporate costs (435) (2,340) 1.3 Dividends received (see note 3) 1.4 Interest received 1 2 1.5 Interest and other costs of finance paid 2 (1,048) (2,099) 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 3 (240,045) (466,461) 1.9 Net cash from / (used in) operating activities (4,335) (3,537) 2. Cash flows from investing activities 2.1 Payments to acquire or for: (g) entities (h) businesses (i) property, plant and equipment (4) (36) 1 ’Receipts from customers’ in the current quarter comprises repayments of customer advances ($232.8m), Beforepay revenue ($11.7m), and net movement in other receivables (-$3.4m). 2 Interest associated with the debt facility which funds customer advances. 3 ’Payments to customers’ comprises advances to customers. For personal use only
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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 2 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date (6 months) $A’000 (j) investments (k) intellectual property (l) other non-current assets (798) (1,583) 2.2 Proceeds from disposal of: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities (802) (1,619) 3. Cash flows from financing activities 190 425 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings4 - - 3.6 Repayment of borrowings - - 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid 3.9 Other (provide details if material) 5 (95) (186) 3.10 Net cash from / (used in) financing activities 95 239 4 Borrowings from the debt facility to fund customers advances. 5 Repayment of lease. For personal use only
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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 3 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date (6 months) $A’000 4. Net increase / (decrease) in cash and cash equivalents for the period 14,133 14,008 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) (4,335) (3,537) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (802) (1,619) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 95 239 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period 9,091 9,091 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A’000 Previous quarter $A’000 5.1 Bank balances 9,091 14,133 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 9,091 14,113 6. Payments to related parties of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 191 6.2 Aggregate amount of payments to related parties and their associates included in item 2 The company made payments to Non-Executive Directors relating to Salaries & Wages (inclusive of superannuation and applicable taxes withheld). For personal use only
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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 4 + See chapter 19 of the ASX Listing Rules for defined terms. 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities 55,000 (30,946) 7.2 Credit standby arrangements 7.3 Other (please specify) 7.4 Total financing facilities 55,000 (30,946) 7.5 Unused financing facilities available at quarter end 24,054 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. On 18 October 2023, Beforepay Finance Pty Ltd, a subsidiary of Beforepay Group Ltd, signed a secured debt facility agreement for A$55 million with Australian Commercial Mortgage Corporation Pty Ltd as trustee for the Australian AB Finance Trust (Balmain Group) and AMAL Security Services Pty Ltd as trustee for LCI Funding Trust 1 (Longreach Lender). • The key terms of the facility agreement include: o A$55 million facility (A$20 million from Longreach Lender and A$35 million from Balmain Group) for 3 years to 15 October 2026 with the potential to extend the total facility size in a future period. This reflects a transfer of debt on 29 November 2024, where Balmain Group and Longreach Lender reached commercial agreement to assign a A$15 million of Longreach Lender’s drawn exposure to Balmain Group. o The maximum commitment increases in non-linear increments over time to $55 million by 14 October 2026. o Borrowing base broadly equal to 80% of the value of eligible receivables. o Interest rate - 12.25% to 13.25%, depending on a fixed charge coverage ratio (FCCR) linked to an EBITDA financial performance measure. o Upfront fees and costs of c. 1.7% on the A$55 million balance. • On 17 April 2025, Beforepay Finance Pty Ltd, repaid $7.5 million under the newly signed revolving credit sub-limit within the existing $20 million Facility B (provided by Balmain Group), forming part of the Company’s total $55 million debt facility, which results in a $50,000 per month saving in interest costs. • Key commercial terms of the amendment include: o Establishment of a A$7.5 million revolving sub-limit within the existing A$20 million Facility B; o An unused line fee of 2.75% per annum on the undrawn portion of the revolving facility; and o No change to the total commitment under Facility B, the overall A$55 million facility limit or the maturity date under the Agreement. • Financing facilities available at quarter end are subject to meeting the borrowing base test under the facility agreement. 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) (4,335) 8.2 Cash and cash equivalents at quarter end (item 4.6) 9,091 8.3 Unused finance facilities available at quarter end (item 7.5) 24,054 8.4 Total available funding (item 8.2 + item 8.3) 33,145 For personal use only
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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms. 8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) 8 Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. 8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: N/A 8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: N/A 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: N/A Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered. Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: .....................28 January 2026.............................................................. Authorised by: .............................By the Board...................................................... (Name of body or officer authorising release – see note 4) Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and For personal use only
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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B ASX Listing Rules Appendix 4C (17/07/20) Page 6 + See chapter 19 of the ASX Listing Rules for defined terms. Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively. For personal use only