CTOS Digital (CTOS) Q2 2026 earnings summary

Executive summary

• Monetised a non-core asset by selling a 10% stake in JurisTech for RM50 million, realising a RM1.6 million gain and initiating a phased divestment strategy.

• Revenue for the six months ended 30 June 2026 increased by 8.6% year-over-year to RM168.5 million, driven by growth in both Malaysia and International segments.

• Profit before tax rose 28.4% year-over-year to RM46.1 million; normalised PATAMI grew 16.0% to RM42.7 million.

• Proceeds from the JurisTech sale will be returned to shareholders via special dividends and share buybacks, each accounting for about 50% of the total.

• Core business remains robust, with >80% recurring revenues and strong cashflows supporting high dividend payouts.

Financial highlights

• 1H FY26 revenue rose 8.6% YoY to RM168.5m; Q2 FY26 revenue up 10.0% YoY to RM86.9m.

• 1H FY26 profit before tax increased 28.4% YoY to RM46.1m; Q2 FY26 PBT up 13.1% YoY to RM25.3m.

• 1H FY26 normalised PATAMI grew 16.0% YoY to RM42.7m; Q2 FY26 PATAMI up 7.1% YoY to RM22.7m.

• Gross profit for the period was RM111.4 million, up 5.0% year-over-year.

• Cost-to-income ratio improved to 45% in 1H FY26 from 48% in 1H FY25.

Outlook and guidance

• Revenue and recurring revenue CAGR targets of 10-12% for 2026-2028 remain intact.

• Dividend payout ratio maintained at 60-70% of profits, with potential for special dividends.

• The group remains cautiously optimistic for 2026, focusing on digital products, AI solutions, and alternative data.

• International segment expected to deliver sustainable growth, leveraging alternative data and scores.

• EPS impact from JurisTech sale mitigated by capital return program.