Up 12%, the Wisr (ASX:WZR) share price is surging. Here's why.

Wisr continued to kick goals in FY21, scoring triple digit revenue growth and a maiden positive operating cash flow.

| More on:
happy business people celebrate, share rise, record price, increase

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Wisr Ltd (ASX: WZR) share price is soaring on Thursday after the lending company announced its FY21 results.

At the time of writing, the Wisr share price is up 8.93% to 30.5 cents.

Wisr share price lifts on triple digit growth revenue

Wisr achieved significant financial and operational milestones in FY21, with key highlights including:

  • Operating revenue up 280% to $27.2 million
  • Total new loan originations up 168% to $365.8 million
  • Total loan originations of $611 million as at 30 June 2021
  • Maiden positive operating cash flow in the month of June
  • Customer profiles on the Wisr Financial Wellness Platform lifting 80% to over 450,000

What happened to Wisr in FY21?

The Wisr share price has been a top performer in 2021, rallying 60.5% year-to-date.

The company continues to find success by redefining the consumer finance experience and providing its users access to a suite of financial wellness tools.

Wisr's loan originations continue to go from strength to strength, lifting 52% in 2H21 from 1H21 to $221 million.

The company is exploring additional verticals to expand its loan book, launching a secured vehicle loan product in 1Q21. Wisr believes this opens up a potential $51 billion market opportunity in the consumer vehicle finance space.

To help drive growth, the company successfully tapped into the global debt capital markets, pricing a $225 million asset-backed security (ABS) transaction to help scale its loan book.

That's in addition to a $55 million capital raising to accelerate the growth of its loan book and improve its technology stack.

While Wisr is still a loss-making business, the company is showing signs of improvement at the bottom line. In FY21, the company had a loss for the year of $17.6 million, a 25% improvement compared to the $23.5 million loss in FY20.

At the end of the period, Wisr remained well capitalised with cash of $92.4 million, driven predominately by the $55 million capital raise in June.

Management commentary

Wisr CEO Anthony Nantes commented on the results, saying:

The accelerated revenue growth of 280% to $27.2M is an exceptional result as the superior loan unit economics of the Wisr Warehouse funding model come into full effect. Now with our second major competitive product, secured vehicle loans, in market, there remains a huge opportunity for Wisr to grow market share by attracting Australia's most creditworthy customers with a smarter, fairer deal, underpinned by an exceptional customer experience that actually improves a customer's financial wellbeing.

What's next for Wisr?

The Wisr share price is within an arm's reach of its all-time high of 34 cents.

The business wants to put its "strong balance sheet to work" and accelerate the pace to achieve its medium-term target of a $1 billion loan book.

To drive loan book growth, the company aims to expand its total addressable market by exploring new markets and growth opportunities.

Its recent expansion into secured vehicle loans is already showing promise, representing 20% of the company's loan book as at 30 June.

In late March, the company executed a term sheet to invest in European financial wellness fintech platform, Arbor. The company believes this potentially opens up an entry pathway to the circa $1.76 trillion European consumer finance market.

Should you invest $1,000 in Wisr Limited right now?

Before you buy Wisr Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Wisr Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares returned to positive territory this Tuesday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Breville, Clarity, EOS, and TechnologyOne shares are racing higher today

These shares are having a strong session on Tuesday. But why?

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

How this ASX All Ords gold stock turned $10,000 into $78,740 in just one year

The ASX All Ords gold miner has raced higher over the year. Let’s find out how.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a happy end to the trading week this Friday.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

CBA shares top $170. Where to now?

Another day, another record high for CBA shares.

Read more »