Cash Converters International (CCV) H2 2025 earnings summary

Executive summary

• Statutory profit after tax rose 41% to $24.5m, reflecting strong execution of strategic transformation, improved loan book quality, and successful store acquisitions in Australia and the UK.

• Revenue remained stable at $385.3m, supported by a business model focused on repurposing retail inventory, non-bank lending, and digital channels.

• Strategic pivot away from payday and vehicle loans toward medium and line of credit products, targeting lower-risk customers and simplifying lending.

• Continued acquisition of franchise stores and expansion of luxury-only retail formats in Australia, UK, and Europe.

• Five consecutive years of fully franked dividends, with FY25 annual dividend at 2.0c per share and a yield of 7.1%.

Financial highlights

• Operating EBITDA increased 8% to $74.5m; operating NPAT up 20% to $25.1m year-over-year.

• Gross loan book declined 15% to $244.6m due to exit from payday and vehicle loans; net loss rate improved to 16.0% from 17.5%.

• Cash and equivalents increased 30% to $73.2m, with $12m in securitization; net tangible asset per share rose to 28.8c.

• Store operating EBITDA grew 29% in Australia to $31.3m and 10% in the UK; UK now contributes 19–20% of group EBITDA.

• Operating cash flow more than doubled to $83.1m, supporting growth initiatives.

Outlook and guidance

• Focus on launching new loan products, scaling loan books, and leveraging machine learning for credit assessments, with growth expected to recommence in Q2 FY26.

• Targeting 20+ franchise store acquisitions per year in Australia and UK/Europe, and expansion of luxury-only retail formats.

• Continued disciplined capital allocation, operational efficiency, and commitment to dividend payments.