EML Payments (EML) investor relations material

Executive summary

• FY26 marks the final year of a major restructuring, with a focus on sustainable double-digit growth and completion of organizational and management changes by year-end, including 28 refreshed management positions and increased operational efficiency.

• Commercial and product teams have been revitalized, driving a strong sales pipeline and improved operational efficiency, with product development prioritized and expanded teams to meet customer-driven demand.

• Product development is now embedded in operations, with a focus on client-aligned initiatives and a major mobility project nearing MVP launch.

• The EML 2.0 strategy is progressing, with a single technology platform (Project Arlo) set for UK launch mid-year and global rollout by year-end, with production deployment for the first region on track.

• Operational transformation is progressing as planned, with positive lead indicators and a strong business development pipeline, though implementation timelines are lagging and being reengineered for completion by end FY26.

Financial highlights

• Revenue for H1 FY26 was AUD 108.4 million, down 6% year-over-year; customer revenue (excluding interest) fell 4% to AUD 79.4 million; interest income dropped 11% to AUD 29 million.

• Underlying EBITDA declined 16% year-over-year to AUD 28 million, impacted by one-off items and client terminations; statutory NPAT was $(4.0)m, down from $9.5m in the prior period.

• Cash balance at period end was $47.8 million, down $11.5 million, mainly due to class action settlement, loan repayment, Project Arlo CapEx, and restructuring payments.

• Gross profit margin decreased to 73% from 75%; underlying gross profit margin steady at 75%.

• Cash used in operations was $33.2 million, including $35.4 million class action settlement.

Outlook and guidance

• FY26 underlying EBITDA guidance narrowed to AUD 58–60 million due to onboarding lags, down from previous AUD 58–64 million.

• Pipeline expected to reach AUD 125 million by year-end, with focus on onboarding, commercial execution, and technology deployment.

• Aspirational FY28 targets remain unchanged.

• Continued investment in Arlo and commercial team expansion planned for H2.

• Management expects to continue as a going concern, supported by updated cash flow forecasts and undrawn debt facilities of $41 million.