Earlypay pulls FY26 EPS guidance as costs rise and growth moderates

Earlypay (ASX:EPY) has withdrawn its FY26 earnings guidance, previously projecting a 15–20% increase in EPS over FY25, citing evolving trading conditions and heightened downside risks.

The company highlighted several factors affecting its earnings outlook, including higher costs from implementing a new invoice finance loan management system, increased short-term expenditure to support product and distribution growth, and elevated credit loss expenses in its equipment finance portfolio.

While invoice finance funds in use grew steadily until November, growth moderated in December, though customer attrition remained minimal and new originations continued strongly.

Total FIU for December is expected to be just below $270 million, up from $249 million in June.

Earlypay CEO James Beeson said the company is focused on building a "larger, more resilient, and profitable" business, emphasising that short-term cost increases will support long-term productivity, portfolio expansion, and shareholder value.

The board intends to provide updated earnings guidance following the company’s half-year results in late February.