EML Payments (EML) H2 2025 earnings summary

Executive summary

• Transformation strategy EML 2.0 launched, focusing on leadership, operational overhaul, and technology modernization, with new executive and commercial teams rebuilt and strong operational momentum.

• Delivered FY25 results at the top end of guidance, securing 27 new clients and renewing 8 major contracts, including 2 in the top 5.

• Project Arlo, a next-gen payments platform, initiated with Visa Pismo partnership to streamline operations and support growth.

• Class action provisionally settled, subject to court approval, with $37.4 million provisioned.

• Balance sheet strengthened with expanded credit facilities and improved net cash position.

Financial highlights

• Revenue up 9% year-over-year to $220.9 million; customer revenue (excluding float interest) up 3% to $157 million.

• Underlying EBITDA rose 13% to $58.6 million, with a margin of 27%, at the upper end of guidance.

• Statutory loss of $53 million due to non-recurring items, including class action settlement and Project Arlo costs.

• Cash balance at $59.3 million, up 46% year-over-year, with net cash movement of $18.6 million.

• Interest income increased 28% to $63.9 million, driven by higher bond yields and float balances.

Outlook and guidance

• FY26 underlying EBITDA guidance set at $58–$63 million, factoring in new business growth and weaker interest income.

• Customer revenue net growth expected at 4–5%, with $15 million new revenue offset by $8 million client runoff.

• Interest revenue forecast to decline by ~$6 million due to lower central bank rates, partially offset by float growth.

• Project Arlo to be in production in Europe, with at least one new product solution launched in FY26; spend projected at $15 million, 40% capitalised.

• Pipeline expected to grow to $90 million+ by December 2025, with more clarity on conversion rates by year-end.