Understand that macro conditions are tough (especially for...

Understand that macro conditions are tough (especially for lenders), but this is another excellent 4C report from WZR.

Cash flow positive just under $4.0m, & expansions of nett interest margins being just two of the many highlights.

Nett write offs are increasing a little, but nothing to be too concerned about IMO.

And they seem to be well funded - with a strong balance sheet.

Really like this business, and think it will do well in the coming years.

See report highlights below:

WZR Delivers $24.1M Revenue, $3.9M Operating Cash Flow

Net Interest Margin Expansion underway coupled with Revenue Growth of 55% on pcp

Wisr Limited (ASX: WZR) (“Wisr”, or the “Company” is pleased to provide the Quarterly Activities Report for the quarter ending 31 March 2023 (Q3FY23). Q3FY23 Highlights:

• After 2022 saw Net Interest Margin (NIM) compression, the Company has returned to NIM expansion.

From a low of 3.5% NIM through the rapid rate rise cycle, Wisr is now delivering a NIM run rate of 5% on new business written and expects a return to a NIM of over 6% in the medium-term

• Material opex reduction in April 2023 with a 30% headcount reduction and significant additional cost reduction initiatives, with a laser focus on delivering near-term profitability
• Q3FY23 loan originations of $140M, $1.6B in total loan originations to date
• Positive operating cash flow of $3.9M and Quarterly Revenue of $24.1M, a 55% increase on Q3FY22 ($15.5M)
• Prime $968M loan book, an increase of 46% on pcp (Q3FY22 $663M), with 90+ Day arrears of 1.16% and average credit score of 765
• Successful completion of $200M inaugural asset-backed securities deal for the secured vehicle loan product, reducing the cost of funds and increasing funding capacity
• The Company is progressing with its plan to implement an additional warehouse facility and has sufficient warehouse capacity to meet planned and projected loan originations
• Cash balance of $21.8M at 31 March 2023, consisting of $18.3M unrestricted cash and $3.5M loans available for sale
• Wisr holds $51.8M of equity note investments within Wisr Warehouses, an increase of $7.4M in Q3FY23
• Wisr Financial Wellness Platform passed 743K profiles, and Wisr Today product continues growth