Finexia’s FY25: $3.13M Loss on $23.8M Revenue, NTA Drops to 19.82 Cents
Finexia Financial Group reported a significant net loss of $3.13 million for FY25, even as revenue jumped 59% to $23.8 million. The company also restated prior year results following accounting corrections.
- Net loss after tax widened to $3.13 million in FY25
- Revenue increased 59% to $23.8 million
- Net tangible assets per security declined to 19.82 cents
- $4.01 million impairment on The Stay Company Income Fund
- Restatement of 2024 financials due to under-accrued expenses
Financial Performance Overview
Finexia Financial Group Limited revealed a challenging year ending 30 June 2025, reporting a net loss after tax of $3.13 million, a steep increase from the $1.09 million loss recorded in the prior year. This deterioration occurred despite a robust 59% rise in revenue to $23.8 million, reflecting growth across its core business segments.
The company’s net tangible asset backing per ordinary security fell to 19.82 cents, down from 24.38 cents in 2024, signaling some erosion in shareholder value amid the losses.
Key Drivers and Impairments
A significant factor weighing on Finexia’s results was a $4.01 million write-down related to its investment in The Stay Company Income Fund, a portfolio focused on Queensland accommodation assets. This impairment followed an external valuation review that accounted for market conditions and extraordinary events such as Cyclone Alfred.
Additionally, the company identified and corrected prior year accounting errors involving under-accrued interest expenses and operating costs. These adjustments led to a restatement of the 2024 financial results, impacting reported revenue and expenses and providing a clearer picture of the group's financial position.
Segment Performance and Operations
Finexia operates across stockbroking and corporate advisory, funds and asset management, and private credit. Revenue growth was broad-based, with notable contributions from its private credit lending activities, which include secured loans to various enterprises with interest rates ranging from 4% to 20%.
The group also holds investments in the Finexia Childcare Income Fund, a retail fund launched in late 2022 targeting childcare centre financing, reflecting its diversification strategy within asset management.
Capital and Dividend Position
Despite the loss, Finexia proposed a fully franked final dividend of 0.5 cents per share for FY25, signaling confidence in its cash flow and capital management. No dividends were paid during the year. The company’s issued capital increased, partly due to share issues and a dividend reinvestment plan.
Importantly, the group reported no capital commitments or contingent liabilities as of 30 June 2025, suggesting a stable balance sheet foundation amid operational challenges.
Outlook and Governance
The financial statements were unaudited at the time of release, and management highlighted ongoing efforts to strengthen accounting controls following the prior period errors. The board’s decision to write down key investments reflects a prudent approach to asset valuation in uncertain market conditions.
As Finexia navigates these headwinds, investors will be watching closely for signs of operational turnaround and clarity on future earnings trajectories.
Bottom Line?
Finexia’s FY25 results underscore the tension between growth and profitability, setting the stage for a critical year ahead.
Questions in the middle?
- How will Finexia address the widening net loss despite revenue growth?
- What is the outlook for The Stay Company Income Fund and other key investments?
- Will the company maintain dividend payments amid ongoing losses?
