Harmoney (HMY) H2 2025 earnings summary

Executive summary

• Statutory NPAT reached $5.5 million, an $18.7 million year-over-year increase, with Cash NPAT at $5.7 million, both exceeding upgraded guidance and driven by automation, platform upgrades, and operational leverage.

• Loan book grew 9% to $829 million, with Australian new customer originations up 40% and New Zealand up over 50% in June 2025 post-Stellare 2.0 rollout.

• Cash return on equity reached 24% in Q4, with a full-year average of 16%, both above guidance.

• Stellare 2.0 platform fully deployed in both markets, driving customer growth, operational efficiency, and improved origination.

• FY26 Cash NPAT guidance raised 20% to $12 million, a 111% increase over FY25.

Financial highlights

• Revenue increased 8% year-over-year to $132 million, supported by loan book growth and higher portfolio interest rates.

• Net interest margin improved to 9.3%, with new lending NIM above 10%.

• Risk-adjusted income rose to 5.7%, up 90 basis points year-over-year.

• Credit losses fell to 3.7% from 4.1%, with 90+ day arrears at 0.74%, less than half the Australian market average.

• Cost to income ratio improved to 19%, reflecting automation and scale benefits.

Outlook and guidance

• FY26 Cash NPAT guidance upgraded to $12 million, up 20% from previous guidance and 111% year-over-year.

• Targeting a year-end loan book over $900 million, with NIM expected to remain in the 9%-10% range and risk-adjusted income around 6%.

• Strategic priorities include product expansion (secured vehicle loans, revolving products), AI leadership, and customer retention initiatives.

• Share buyback program to resume, authorizing up to 5% of shares to be repurchased.

• Continued focus on operational leverage and platform-driven growth.