Bravura Solutions (BVS) H2 2025 earnings summary

Executive summary

• Underlying revenue from customers (excluding the Fidelity license agreement) reached AUD 256.8 million, up 0.7% on a constant currency basis over fiscal 2024, with recurring revenue at AUD 154.3 million.

• Underlying cash EBITDA was AUD 43.8 million, with a margin of 17%, and cash at year-end was AUD 58.7 million with no debt.

• Final dividend of AUD 13.1 million and a special dividend of AUD 8 million were declared.

• CEO search is ongoing, with an appointment expected by the AGM.

• Operational highlights include new digital advice solutions, major client wins, and significant automation improvements.

Financial highlights

• Maintenance, support, and hosting revenue grew by 5.6%, and professional services by 2.1%.

• License fees declined 36% to AUD 5 million; total underlying revenue from customers increased 3.1% to AUD 256.8 million.

• Underlying EBITDA nearly doubled to AUD 50.5 million, and underlying NPAT rose 177% to AUD 24.4 million year-over-year.

• Operating costs decreased by AUD 17 million compared to fiscal 2024, reflecting cost discipline and efficiency gains.

• Cash balance decreased 35% to AUD 58.7 million, mainly due to capital returns and dividends.

Outlook and guidance

• Fiscal 2026 revenues are expected to be in line with 2025, with cash EBITDA projected above AUD 50 million.

• Priorities include protecting and growing recurring revenue, advancing platforms, exploring partnerships, and driving efficiency.

• One major customer generating AUD 10 million in 2025 will complete migration by January 1, 2026, impacting future revenue.

• Fiscal 2025 attrition will further reduce recurring revenue by AUD 6.5 million in 2026.

• PPE CapEx expected at AUD 2-3 million; equity-based compensation to be managed via share purchases or issuances.