Sequoia Financial Group (SEQ) H2 2025 earnings summary

Executive summary

• EBITDA for FY2025 increased 13.7% to $9.9 million, reflecting operational improvements and cost reductions despite divesting five business units.

• Revenue was stable at $124.1 million, with normalized business growing on a like-for-like basis after divestments.

• Net profit before tax was $5.84 million; after a $4.2 million goodwill impairment, net profit after tax was $3.2 million.

• Transitioned to a simplified two-division structure, driving a strong second-half performance.

• Dividend of $0.04 per share maintained, with a 60% payout ratio.

Financial highlights

• EBITDA increased 13.7% year-over-year to $9.9 million.

• Revenue stable at $124.1 million, not reflecting the impact of five divestments.

• Net profit after tax was $3.2 million, or $0.026 EPS, impacted by a $4.2 million goodwill write-down.

• Operating margin improved to 8% and operating profit margin increased by 13% year-over-year.

• Net assets at $48.5 million, $4.3 million in cash, and $16 million in strategic investments.

Outlook and guidance

• Targeting 10% net growth in advisor numbers and 10% increase in revenue per advisor over the next 12 months.

• Plans to grow salaried advice business by 25% in advisor numbers and double EBITDA over the next year.

• Legal documents business aims for 10% organic client growth and market share increase from 10% to 15%.

• Ongoing technology and compliance investments, including AI and governance enhancements.

• Focus on operational efficiency, platform synergies, and disciplined capital management.