Harmoney (HMY) H2 2025 earnings summary

Executive summary

• Statutory net profit after tax reached $5.5 million, an $18.7 million year-over-year increase, with Cash NPAT at $5.7 million, both exceeding guidance and driven by automation, platform upgrades, and strong loan book growth.

• Cash return on equity was 16% for FY25 and 24% in Q4, surpassing guidance.

• 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.

• Stellare 2.0 platform rollout completed in both Australia and New Zealand, driving significant growth and customer acquisition.

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

Financial highlights

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

• Net interest margin rose to 9.3%, within the 9%-10% target range.

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

• Credit losses decreased 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 operational efficiency.

Outlook and guidance

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

• Loan book expected to exceed $900 million, with NIM maintained 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 resumed, authorizing up to 5% of shares to be repurchased by April 2026.

• Plans to launch new secured auto loan and revolving credit products in FY26.