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 net profit after tax of AUD 9.5 million, reversing a prior loss.

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

• The EML 2.0 strategy is underway, focusing on a global operating model, unified technology platform (Project Arlo), and expansion into new verticals.

• Leadership team stabilized and expanded, driving higher productivity and momentum.

• Discontinued operations (Sentenial, PCSIL, PESEL, Centennial) excluded from performance metrics following their exit.

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; net profit after tax improved from -AUD 4.7 million to +AUD 9.5 million.

• Cash balance at AUD 50.6 million, up AUD 7.5 million in the half; operating cash flow was AUD 4.6 million after one-off costs.

• Underlying gross profit increased 17% to AUD 86.7 million; gross profit margin improved to 75%.

• Underlying EBITDA margin improved to 29% from 22% year-over-year.

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% conversion rate.

• Focus on expanding product and market offerings, especially in new verticals and the US.

• Technology focus on Project Arlo MVP buildout and NPP integration in Australia.

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