Shine Justice (SHJ) H2 2025 earnings summary

Executive summary

• FY25 featured strategic organizational restructuring, leadership changes with new CEO and CFO, and a sharpened focus on personal injury (PI) and class actions, including exit from non-core areas and expansion into US mass torts.

• Revenue increased to $204.4 million from $195.7 million year-over-year, driven by increased legal work and revenue per fee earner.

• Adjusted EBITDA declined to $38.4 million from $45 million, impacted by increased provisions, higher employee benefits, and balance sheet strengthening.

• Major investments made in technology, class action growth programs, and US international mass torts expansion.

• Operating cash flows were $30.6 million, down from the prior year due to one-off class action receipts in FY24.

Financial highlights

• Revenue up 4.4% year-over-year to $204.4 million, driven by core practice areas.

• Adjusted EBITDA down to $38.4 million, mainly due to increased provisions, higher employee benefits, and a $9.6 million fair value loss.

• Net debt increased to $53.6 million, primarily from reclassifying $18.8 million disbursement funding to borrowings, resulting in interest savings.

• Gross borrowings at $71.6 million, with average cost of debt around 7%.

• CapEx at $2.3 million, lower than previous years.

Outlook and guidance

• FY26 outlook anticipates improved financial outcomes, with growth initiatives in PI and class actions, office expansion, improved fee earner utilization, and US mass torts strategy.

• PI EBITDA margin baseline set at 20%, with ambitions to reach 25% or higher as operational improvements take effect.

• Class actions segment expects further revenue growth as portfolio funding is secured, with growth weighted toward the second half of FY26.

• Headcount expected to decrease as AI and technology improve efficiency.