The Credit Corp Group Ltd (ASX: CCP) share price is up more than 19% after revealing its FY25 result and the outlook.
Credit Corp is a debt collector in Australia and the US. It’s also a lender in Australia and New Zealand through Wallet Wizard.
Credit Corp FY25 result
The business reported how it performed in the 12 months to 30 June 2025:
- Total revenue grew 5% to $545.6 million
- Underlying net profit soared 16% to $94.1 million
- Reported net profit increased 86% to $94.1 million
- Earnings per share (EPS) jumped 86% to $1.382
- Dividend per share hiked by 79% to $0.68
There was a divergent performance between the company’s ANZ and US debt collecting businesses.
ANZ debt collecting saw revenue decline 5% to $219.9 million and its underlying net profit fell 13% to $22.2 million. The market remains “constrained” with sale volumes still “significantly below pre-COVID levels”. Renewed competition saw Credit Corp’s ANZ purchasing fall by 29% compared to the prior year, which will impact earnings in FY26. This is expected to be offset by benefits from its systems consolidation in the collection services division.
However, the US debt buying business saw revenue rise 14% to $125.9 million and underlying net profit increased 21% to $17.6 million. Credit Corp said operational performance continued to improve, with strong collections growth and a 28% increase in productivity. This led to increased purchasing in the second half of the year.
The best performer of the business was the ANZ lending segment – revenue rose 12% to $199.8 million and underlying net profit increased 31% to $54.3 million. There was a fall in consumer demand and more modest growth in FY25.
The company said the core Wallet Wizard unsecured cash loan product enjoys a “leading position in the market and continues to acquire large volumes of new customers each month.” However, growth is likely to be “more limited” as originations to new customers must exceed the ongoing impact of existing customer attrition.
Strong outlook for the Credit Corp share price
The Credit Corp share price may have gotten a boost from its outlook for FY26.
The US debt buying segment secured a record A$164 million contracted investment pipeline for FY26, setting up expected “strong segment earnings growth” for FY26. There has been no signs of deterioration over the past 18 months with US consumers.
Credit Corp said that further product and market diversification is “key” to future consumer lending earnings growth. The Wizit digital credit card has now been released from the pilot.
It has also taken steps to commence lending operations in the UK during the first half of FY26 – this market presents a “sizeable opportunity”.
In FY26, it’s expecting its total purchased debt ledger (PDL) acquisitions growth to be between $280 million to $330 million, up 27% at the mid-point of the guidance.
in FY26, net profit after tax is expected to come between $100 million to $110 million, up 12% if the mid-point guidance is achieved.
Overall, things are looking positive for the company in FY26. However, this is the type of business I’d rather buy when economic conditions are weak.
For now, there are other ASX growth shares and ASX dividend shares I’d buy first.