Bravura Solutions (BVS) H2 2025 earnings summary

Executive summary

• Underlying revenue from customers reached $256.8m, up 3.1% year-over-year (0.7% in constant currency), with $154.3m in recurring revenue.

• Underlying cash EBITDA was $43.8m, with a margin of 17%, and underlying EBITDA rose to $50.5m, reflecting significant improvement over the prior year.

• Cash position at year-end was $58.7m with no debt; a final dividend of $13.1m and a special dividend of $8m 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 5.5%, and professional services by 2.1%.

• License fees declined 36% to $5.0m; total underlying revenue from customers increased 3.1% to $256.8m.

• Underlying NPAT was $24.4m, up $15.6m year-over-year; reported NPAT was $74.2m, including a one-off licence sale.

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

• Cash balance decreased 35% to $58.7m, 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 $50m.

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

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

• Fiscal 2025 attrition will further reduce recurring revenue by $6.5m in 2026.

• PPE Capex expected at $2-3m; equity-based compensation to be managed via share purchases or issuances.