Judo Capital Holdings Ltd's stock plummeted 5.25% during intraday trading on Friday, extending losses after a significant decline in the previous session. The Australian business lender has been under pressure following a substantial revision to its profit outlook and growing concerns about credit risk management.

The company recently cut its 2026 profit before tax outlook to between A$163 million and A$169 million, down from the previous range of A$180 million to A$190 million. This downgrade was attributed to increased provisions linked to deteriorating exposures to what the company described as a "small number of customers." The move follows earlier credit loss provision increases in April for sectors exposed to fuel prices and slower economic growth.

Analysts have responded by cutting profit forecasts, with Morningstar reducing FY26/FY27 profit forecasts by 9%/13%, Jefferies lowering FY26/FY27 EPS by 9%/18%, and Citi trimming EPS by 8%-14% across FY26-27 estimates. While some analysts maintain that the credit risks appear isolated rather than systemic, concerns have been raised about the company's risk management practices and the effectiveness of its underwriting standards.