Risks Linger as Wisr Targets Profitability with New Capital and Debt Terms
Wisr Limited has announced an $11.4 million equity raise alongside an upgraded FY26 outlook and a non-binding term sheet to refinance its debt at lower interest rates, positioning the fintech lender for profitability in the second half of FY26.
- Equity capital raise of up to $11.4 million via placement and Share Purchase Plan
- Upgrade to FY26 guidance with expected cash NPAT profitability in H2FY26
- Non-binding term sheet executed to refinance corporate debt facility at lower interest margins
- Placement proceeds to reduce drawn debt from $35 million to $27.5 million
- Loan origination growth target of 40%+ and revenue growth of 15%+ reaffirmed
Capital Raise and Shareholder Offer
Wisr Limited (ASX, WZR), the Australian fintech lender, has announced a strategic equity capital raise of up to $11.4 million. This raise is structured through a $9.4 million institutional placement and a $2.0 million Share Purchase Plan (SPP) offered to eligible existing shareholders at $0.031 per share, representing a modest discount to recent trading prices. The placement shares will rank equally with existing shares, with settlement expected mid-November and the SPP opening shortly thereafter.
Upgraded Financial Outlook
Following the capital raise, Wisr has upgraded its FY26 guidance, now anticipating cash net profit after tax (NPAT) profitability in the second half of FY26. The company reaffirmed ambitious growth targets, including over 40% loan origination growth and revenue growth exceeding 15%, alongside an improved cost-to-income ratio of approximately 29%, down from 31% in FY25. This signals a clear pathway toward operational efficiency and sustainable profitability.
Debt Refinancing Initiative
In a complementary move, Wisr has executed a non-binding term sheet with an Australian institutional private credit fund to refinance its existing corporate debt facility. The new facility, subject to final documentation, aims to maintain the $50 million limit and three-year tenor but will materially reduce the interest margin, easing financial costs. The proceeds from the capital raise will be primarily used to repay $7.5 million of drawn debt, lowering the balance from $35 million to $27.5 million, thereby strengthening the company’s balance sheet and liquidity position.
Strategic Implications
CEO Andrew Goodwin described the capital raise as a strategically important step toward scaling Wisr’s business and achieving profitability. The strong institutional support reflects confidence in Wisr’s growth strategy and long-term outlook. The combination of fresh equity, debt refinancing, and upgraded guidance suggests the company is positioning itself to capitalize on growth opportunities in the competitive fintech lending sector.
Next Steps for Investors
Investors will be watching closely as the SPP opens and closes in late November and early December, and as Wisr finalizes its debt refinancing arrangements. The company’s ability to execute on these initiatives will be critical to delivering on its upgraded FY26 targets and sustaining momentum in loan origination and revenue growth.
Bottom Line?
Wisr’s capital raise and refinancing plans set the stage for a pivotal year ahead, but execution risks remain as it targets profitability.
Questions in the middle?
- Will Wisr successfully complete the debt refinancing on the proposed terms?
- How will the market respond to the SPP subscription levels and potential scale-back?
- Can Wisr sustain its loan origination growth amid competitive fintech lending pressures?
