Wisr Limited (ASX:WZR) Nears Breakeven: Operational Efficiency and Unit Economics Signal Inflection Point

Wisr Limited (ASX:WZR) is approaching a critical inflection point in its journey toward breakeven, driven by a combination of operational efficiency gains and improving unit economics. The company’s Q2FY25 results underscore this momentum, with EBITDA profitability of $0.8 million achieved despite flat revenue of $91.6 million for FY25 compared to FY24 [3]. This profitability marks a $3.1 million improvement year-over-year and reflects a strategic shift toward disciplined credit quality and cost optimization [1].

Operational Efficiency: Automation and Cost Reduction

Wisr’s AI-powered decision engine has automated 78% of loan approvals, reducing manual intervention and accelerating processing times [4]. This automation, coupled with a 134% increase in automated loan verification steps, has significantly lowered operational overhead. For FY24, operating expenses dropped to $26.5 million from $32.8 million in FY23, a 19% reduction [3]. The company has set a target to further reduce its cost-to-income ratio to below 29% in FY26, signaling continued focus on efficiency [2].

Unit Economics: Credit Quality and Yield Improvements

Unit economics have strengthened as credit quality metrics improved. The average borrower credit score rose to 804 in FY25 from 794 in FY24, while 90+ day arrears fell to 1.40% from 1.58% [1]. Net losses also declined to 1.79% from 2.40%, indicating better risk management [3]. These improvements, combined with a 101% year-on-year increase in loan originations ($422 million in FY25), demonstrate that growth is no longer coming at the expense of credit standards [4].

Portfolio yield and net interest margin (NIM) have also expanded. The portfolio yield reached 11.20% in FY25, up from previous levels, while NIM improved to 5.46% [1]. These metrics suggest that Wisr is capturing higher returns per loan, even as average loan balances declined slightly due to a shift toward smaller, higher-margin personal loans [2].

Breakeven Pathway: Strategic Leverage and Growth

Wisr’s loan book grew to $824 million by the end of FY25, a 7% increase from June 2024 [1]. This growth, paired with a $267 million warehouse facility secured with Barclays Bank PLC, provides the liquidity needed to scale operations without diluting margins [3]. Analysts project the company will achieve a final loss in 2023 before turning profitable in 2024, with EBITDA-positive results already materializing in Q2FY25 [4].

The key to breakeven lies in sustaining these unit economics while scaling. With loan originations up 101% in FY25 and a target of 40%+ growth in FY26, Wisr’s ability to maintain low default rates and high yields will determine its long-term viability [2]. The company’s focus on AI-driven automation and disciplined credit underwriting positions it to capitalize on market opportunities without compromising profitability.

Conclusion

Wisr’s operational efficiency and unit economics are aligning to create a clear path to breakeven. By leveraging technology to reduce costs, improving credit quality, and expanding margins through higher-yield products, the company is transforming from a high-growth fintech into a sustainable, profitable business. Investors should monitor upcoming quarters for consistency in EBITDA performance and further reductions in the cost-to-income ratio, which will solidify the inflection point narrative.

**Source:[1] Wisr achieves 101% loan origination growth, exceeding guidance [https://www.fintechaustralia.org.au/newsroom/wisr-achieves-101-loan-origination-growth-exceeding-guidance][2] Wisr Returns To EBITDA Profitability on Back of 101% Loan [https://smallcaps.com.au/wisr-ebitda-profitability-101-percent-loan-origination-growth][3] Wisr Ltd (ASX:WZR) Full Year 2026 Earnings Call Highlights [https://finance.yahoo.com/news/wisr-ltd-asx-wzr-full-070531975.html][4] Wisr Ltd (ASX:WZR) Q1 2025 Earnings Call Highlights [https://finance.yahoo.com/news/wisr-ltd-asx-wzr-q1-071843348.html]