Afterpay NZ profit more than triples on BNPL growth
Mon, 1st Jun 2026 (Yesterday)
Afterpay NZ more than tripled its annual profit in 2025 as growth in buy now, pay later (BNPL) income helped lift revenue despite a rise in receivable impairment expenses.
The company reported profit after income tax of NZD $3.5 million for the year ended 31 December 2025, compared with NZD $1.1 million in 2024. Profit before income tax increased to NZD $5.2 million from NZD $1.5 million a year earlier.
Total revenue and income rose to NZD $143.2 million from NZD $121.9 million, an increase of about 17.4%. Operating profit improved to NZD $9.6 million from NZD $5.9 million.
The New Zealand business forms part of the broader Afterpay and Block ecosystem and provides BNPL services to consumers and merchants.
Revenue growth
BNPL income remained the company's largest revenue source and continued to expand during the year.
BNPL income increased to NZD $120.0 million from NZD $103.0 million in 2024. Late fee income also rose to NZD $19.8 million from NZD $18.6 million. Intercompany services revenue increased substantially to NZD $3.4 million from NZD $391,464.
The growth in BNPL income reflected continued transaction activity across the platform, with consumers splitting purchases into instalments and merchants paying fees to access the service.
Gross profit increased to NZD $114.5 million from NZD $98.5 million as revenue growth outpaced the increase in cost of sales. Cost of sales rose to NZD $28.7 million from NZD $23.4 million.
Credit costs
The company's largest expense remained reseller fees, which increased to NZD $73.9 million from NZD $69.5 million.
Receivable impairment expenses rose sharply to NZD $19.4 million from NZD $12.3 million. The increase highlights the ongoing credit risk associated with consumer lending activity within the BNPL sector.
Employee benefit expenses declined to NZD $2.0 million from NZD $2.8 million, while depreciation expenses fell slightly to NZD $198,152. Share-based payment expenses increased to NZD $1.9 million from NZD $1.7 million.
Foreign exchange movements delivered a gain of NZD $3.4 million, compared with a small loss in the previous year. Other operating expenses increased to NZD $10.8 million from NZD $6.1 million.
Balance sheet
Total assets increased to NZD $134.2 million at the end of 2025 from NZD $130.0 million a year earlier. Current assets rose to NZD $128.4 million from NZD $119.2 million.
Cash and cash equivalents climbed to NZD $58.9 million from NZD $39.9 million. Financial assets increased to NZD $35.9 million from NZD $25.5 million. Receivables rose to NZD $29.5 million from NZD $25.4 million.
The company stated that it remained profitable and that its net asset position supported its ability to continue operations and meet obligations as they fell due.
Cash position
Net cash generated from operating activities reached NZD $28.3 million in 2025, reversing a net operating cash outflow of NZD $13.0 million in the previous year.
Cash used in financing activities totalled NZD $8.3 million, while investing outflows remained limited at NZD $33,781. The company also increased restricted cash during the year.
Cash and cash equivalents finished the year at NZD $58.9 million, compared with NZD $39.9 million at the start of the reporting period.
The stronger profitability and operating cash generation came despite higher impairment charges, with BNPL income continuing to account for the majority of Afterpay NZ's revenue base.