Harmoney (HMY) Q3 2026 earnings summary

Executive summary

• FY2026 cash NPAT guidance reaffirmed at NZD 13 million, representing 128% year-over-year growth, driven by strong loan book expansion, margin improvement, and operating leverage from the Stellare® 2.0 platform.

• Group loan book grew 10% year-over-year to NZD 879 million, with Australian loans now 62% of the total and New Zealand loan book up 9% in local currency.

• Originations up 29% year-over-year, with vehicle loan book growing 19% and Australian loan book up 17%; New Zealand originations up over 50% in local currency.

• Significant expansion in auto lending, with secured auto product gaining traction and new auto partners onboarded in New Zealand.

• On-market share buyback program extended for 12 months to April 2027, reflecting management's view of undervaluation and allowing up to 5% of shares to be repurchased.

Financial highlights

• Net interest margin increased by 120 bps to 10.3%; risk-adjusted income margin up 120 bps to 6.5%.

• Credit losses stable at 3.8%; 90+ day arrears improved to 0.62%, less than half the industry average.

• Cost-to-income ratio reduced to 18.2%, reflecting high automation and operational leverage.

• Total originations reached NZD 370 million, up 29% year-over-year.

• Unrestricted cash rose to NZD 26 million, up from NZD 23 million at June 2025, despite NZD 7.5 million corporate debt repayment.

Outlook and guidance

• FY2026 cash NPAT guidance reaffirmed at NZD 13 million, with a year-end loan book expected to exceed NZD 900 million.

• Clear pathway to continued strong profit growth beyond FY2026, supported by platform scalability and new product rollouts.

• Well capitalised with over NZD 30 million in available cash reserves and warehouse capacity exceeding NZD 1 billion.

• Expansion into the car loan market to accelerate with new secured lending warehouse and onboarding of new car partners.

• Return on equity for first half FY2026 at 31%.