QuickFee Reports Record A$6.3M Q3 Revenue, Revises FY25 Earnings Guidance

Robust Revenue Growth Amidst Operational Momentum

QuickFee Limited (ASX: QFE) has delivered a strong performance in the third quarter of FY25, posting record revenue of A$6.3 million, marking a 29% increase compared to the prior corresponding period. This growth is underpinned by expanding transaction volumes and margin improvements across both its Australian and US finance products, as well as accelerating adoption of its Connect platform.

The Connect platform, QuickFee’s scalable accounts receivable solution tailored for accounting firms, saw invoices delivered more than double quarter-on-quarter, surging 118% to over 37,000 invoices. This reflects successful onboarding of new firms and deeper integration with existing clients, positioning Connect as a key driver of recurring, high-margin subscription revenue.

US Credit Impairment Clouds Earnings Outlook

Despite the underlying business strength, QuickFee has encountered a significant setback with a one-off credit impairment provision of approximately A$3.3 million related to a US firm default. The company has been unable to recover around US$450,000 under its finance product guarantee and has made a full provision against its maximum exposure of US$2.2 million.

In response, QuickFee’s board has resolved to initiate legal proceedings in the US against the defaulting firm and its clients to recover the outstanding amounts. While the company remains confident in its core business, this credit loss has forced a revision of FY25 statutory EBTDA guidance from a positive range of A$1.5 million to A$2.5 million to a forecasted loss between -A$0.8 million and -A$1.8 million.

Operational Highlights and Market Positioning

QuickFee’s US finance product continues to gain traction, with revenue up 29% year-on-year to US$0.9 million and total transaction value (TTV) increasing 12% to a record US$7.6 million. The Australian finance segment also showed robust growth, with revenue rising 30% to A$2.6 million and TTV up 8% to A$14.1 million, supported by margin expansion driven by growth in the disbursement funding loan book.

The company’s loan book has grown 17% year-to-date to A$64.8 million, funded primarily through borrowings. QuickFee is actively progressing refinancing discussions to replace existing facilities with new funding expected by the end of June 2025, which will enhance borrowing capacity and support future loan book expansion.

Leadership Transition and Strategic Outlook

QuickFee also announced the impending departure of its North America President, Jennifer Warawa, who has been instrumental in resetting the company’s growth strategy. The board expressed confidence in the existing senior leadership team to maintain momentum during the transition period.

Non-executive Chairman Dale Smorgon emphasized the company’s strong underlying performance and growth trajectory, noting that the one-off credit loss does not diminish expectations for continued profitable volume and revenue growth. The focus remains on execution and leveraging the Connect platform’s expanding client base to drive sustainable profitability.