Harmoney (HMY) H2 2025 earnings summary

Executive summary

• Statutory net profit after tax of $5.5 million, up $18.7 million year-over-year, driven by strong underlying cash NPAT and operational efficiency.

• Cash NPAT reached $5.7 million, exceeding upgraded market guidance, with scale and automation improvements contributing to a $5.0 million increase.

• Delivered a 16% cash return on equity for the year, with Q4 reaching 24%, surpassing guidance.

• Loan book grew 9% to $829 million, with Australian new customer originations up 40% and New Zealand up over 50% in June after Stellare 2.0 rollout.

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

Financial highlights

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

• Net interest margin (NIM) on new lending remained above 10%, with the average NIM for the loan book at 9.3%.

• Risk-adjusted income improved by 90 basis points to 5.7% due to lower credit losses.

• Credit losses fell to 3.7% from 4.1% the previous year, with 90+ day arrears at 0.74%, less than half the Australian market average.

• Cost to income ratio improved to 19%, reflecting high automation and operational efficiency.

Outlook and guidance

• Upgraded FY26 cash NPAT guidance to $12 million, a 111% increase over FY25, with Stellare 2.0 expected to drive the loan book over $900 million.

• Net interest margin expected to remain in the 9%-10% range, with risk-adjusted income around 6%.

• Strategic priorities include product expansion (secured vehicle loans, revolving products), AI leadership, and customer retention initiatives.

• Share buyback program to resume, authorizing up to 5% of shares to be repurchased.