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 NPAT of AUD 9.5 million, reversing a prior loss.

• Interest revenue surged 49% to AUD 32.8 million, and customer revenue rose 6% to AUD 82.3 million.

• Cash balance increased by AUD 7.5 million to AUD 50.6 million, supported by operating inflows and proceeds from the Sentenial sale.

• EML 2.0 transformation underway, with a new global structure, unified technology platform (Project Arlo), and expanded commercial team.

• Leadership team stabilized and new executive appointments made, driving renewed momentum and productivity.

Financial highlights

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

• Net profit after tax was AUD 9.5 million, compared to a loss of AUD 4.7 million in the prior year.

• Cash conversion rate at 44% of EBITDA, impacted by timing of bond interest receipts.

• Net cash position achieved post-Sentenial sale and debt repayment; total equity up 12% to AUD 178.6 million.

• Operating cash flow was AUD 4.6 million after class action and one-off costs.

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% expected conversion rate.

• Focus on expanding into new verticals and leveraging core strengths, with technology investments in Project Arlo and NPP integration.

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