EML Payments (EML) H1 2025 earnings summary

Executive summary

• Revenue grew 15% year-over-year to AUD 115.1 million, with underlying EBITDA up 50% to AUD 33.4 million and NPAT of AUD 9.5 million, reversing a prior loss.

• Interest revenue surged 49% to AUD 32.8 million, customer revenue rose 6% to AUD 82.3 million, and cash increased by AUD 7.5 million to AUD 50.6 million.

• The EML 2.0 transformation is underway, focusing on a global operating model, unified technology platform (Project Arlo), and revitalized commercial approach.

• Leadership team stabilized and expanded, with new executive appointments and renewed momentum.

• Discontinued operations (Sentenial, PCSIL, PESEL, Centennial) excluded from performance metrics, following exits and restatement of comparatives.

Financial highlights

• Revenue up 15% year-over-year to AUD 115.1 million; customer revenue up 6% to AUD 82.3 million; interest revenue up 49% to AUD 32.8 million.

• Underlying EBITDA rose 50% to AUD 33.4 million, with margin improving to 29%; NPAT improved from a loss of AUD 4.7 million to a profit of AUD 9.5 million.

• Cash balance increased by AUD 7.5 million to AUD 50.6 million, supported by operating inflows and divestment proceeds.

• Underlying gross profit up 17% to AUD 86.7 million; gross profit margin at 75%.

• Operating cash flow was AUD 4.6 million, impacted by class action and one-off costs.

Outlook and guidance

• FY 2025 underlying EBITDA guidance reaffirmed at AUD 54–60 million.

• Sales pipeline targeted to reach AUD 65 million by year-end, with a long-term goal of AUD 90 million and a 20% expected conversion rate.

• Focus on expanding into new verticals and leveraging core strengths, with technology investments in Project Arlo and NPP integration.

• Interest yield expected to moderate in 2H 2025 due to central bank rate reductions, but impact tempered by bond portfolio.

• Strategic priorities include operating model optimization and embedding new global structure for efficiency.