Cash Converters International (CCV) H2 2026 earnings summary

Executive summary

• Completed a major strategic pivot by exiting payday and vehicle lending, focusing on a single personal loan product and expanding corporate store ownership in Australia, the U.K., and New Zealand.

• Revenue rose 11.4% year-over-year to $429.2m, driven by franchise and corporate store acquisitions, comparable-store growth, and international expansion.

• Operating EBITDA increased 11.1% to $67.0m, while Operating NPAT declined 7.8% to $23.2m due to higher depreciation and finance costs from network expansion.

• Store acquisitions and strong same-store sales growth, especially in Australia (13%) and the U.K. (6%), have driven earnings resilience during the lending transition.

• The new Cashies Loan book grew nearly fivefold to $114.1m, positioning it as the future growth engine.

Financial highlights

• Gross loan book declined 3.3% to $236.6m as legacy portfolios ran down; Cashies Loan book surged nearly fivefold to $114.1m.

• Net Loss Rate improved to 11.1% from 16.0% in FY25, reflecting better credit quality.

• Cash and cash equivalents stood at $37.2m, with $60.5m in available funding capacity.

• Free cash flow was $20.3m after CapEx, supporting a fully franked 2.0c per share dividend (6.7% yield) for the sixth consecutive year.

• Statutory NPAT fell 20% to $19.7m, impacted by $3.5m after-tax transition and acquisition-related costs.

Outlook and guidance

• Strategic reset in FY26, with focus on investment and scale in FY27 and earnings growth in FY28+.

• Plans to acquire 15–20 stores and open 5–10 greenfield locations in FY 2027, targeting 10–20% store network growth.

• Focus on optimizing the balance sheet, refinancing, and disciplined franchise acquisitions.

• Earnings rebuild expected in FY 2027 as the new loan book matures and legacy runoffs complete.

• Priorities include scaling the Cashies Loan portfolio, improving lending platform efficiency, and expanding luxury offerings.