Not a bad market reaction to Credit Corp’s FY2025 results, with shares up 20% at one stage.

The numbers seem pretty good, at least at a surface level. NPAT came in 86% higher than last year, which was hit by impairments and accounting changes. Operating cash flow swung back into the black too (+$51 million vs -$50 million in FY24), and ROE nudged higher to 15.6 percent.

Last year’s result had a few red flags, as discussed at the time. Especially that change in PDL life cycle assumptions (from 6 to 8 years), which some here rightly questioned.

But this year things look a lot cleaner. It was also great to see growth in the US and lending segments. The FY26 outlook is for another 12% NPAT lift, and they have already secured 70 percent of their US PDL investment pipeline.

Given the heat CCP copped over US PDL accounting and impairments a couple years back, it is encouraging to see the business lean into operational improvements and (hopefully) more disciplined investment. It seems like a genuine course correction.

So it feels like they have stabilised things, which is good to see. No reason not to think they can keep trucking if they maintain that discipline.