Cash Converters (ASX:CCV) Shares Rise 3% Today

Cash Converters (ASX:CCV) Shares Rise 3% Today – Here’s Why

Sonal Goyal

03 September 2026 02:59 PM AEST

Cash Converters (ASX:CCV) Shares Rise 3% Today – Here’s Why

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Key Highlights

FY26 Revenue increased 11% to $429.2 million, while statutory NPAT declined 20% to $19.7 million
The Cashies Loan book grew almost five times to $114.1 million, up from $23.1 million at 30 June 2025
Group Net Loss Rate improved to 11.1% from 16.0% in FY25, reflecting stronger Credit quality in the new loan book
The Board declared a final fully Franked Dividend of 1.0 cent per share, bringing the total FY26 dividend to 2.0 cents per share

Shares in Cash Converters International Limited (ASX:CCV) were trading at $0.28 on 3 September 2026, up 3.64%, or 1 cent, as at 1:20pm AEST. The company's 21 August 2026 announcement of its FY26 financial results gains attention. It reported revenue and EBITDA growth alongside a decline in statutory net profit as the group continued its transition away from legacy lending products.

Financial Results Overview

Cash Converters reported FY26 revenue of $429.2 million, an increase of 11% on FY25's $385.3 million, supported by Franchise store acquisitions and comparable-store growth, partly offset by the planned run-down of the group's legacy Payday Loan and Vehicle Loan portfolios. Operating EBITDA rose 11.1% to $67.0 million, while Operating NPAT declined 7.8% to $23.2 million, which the company attributed to lower legacy lending Earnings and higher Depreciation and finance costs associated with the expanded store network. Depreciation increased by $6.1 million and finance costs rose by $2.0 million over the year.

Statutory NPAT declined 20% to $19.7 million from $24.5 million in FY25, a result that included $3.5 million after tax of transition and acquisition-related costs. Basic Earnings Per Share fell to 2.9 cents from 3.9 cents in the prior year. The Group's gross loan book declined 3.3% to $236.6 million, reflecting the transition in the company's lending product mix and the run-down of legacy loan books. Cash and cash equivalents fell 49% to $37.2 million from $73.2 million at 30 June 2025.

Cashies Loan Product Scaling

The Cashies Loan book, the company's newer revolving credit product, increased almost five-fold to $114.1 million from $23.1 million at 30 June 2025. Legacy Payday Loans now comprise only 2.4% of the group's $236.6 million total gross loan book, down substantially from prior levels, as the company continues its transition away from short-term lending products following the cessation of Small Amount Credit Contract origination on 30 September 2025.

The company's proprietary AI-powered Machine Learning credit models contributed to an improvement in the Group Net Loss Rate to 11.1%, from 16.0% in FY25, which the company attributed to improved credit quality among borrowers in the new loan book.

Store Network Expansion

Australian store revenue increased 36.7% during the year, with Operating EBITDA rising 49.7% to $46.8 million and same-store sales growing 13%. UK revenue increased 32.4%, with Operating EBITDA up 53.7% to $21.7 million and same-store sales growing 6%. During the year, the group added 47 corporate stores through the Acquisition of 42 franchise stores and the opening of 5 greenfield locations, comprising 39 additions in Australia and 8 in the UK.

Following a further greenfield opening after year-end, the group's corporate network comprises 200 stores across Australia, New Zealand and the UK, with a further 28 stores in Australia, 12 in New Zealand and 124 in the UK remaining franchise-owned. The company also expanded its luxury retail offering, opening three additional Luxe stores across Australia and the UK following the successful Bondi pilot in FY25, and extended its authenticated pre-owned range to include high-end handbags and shoes using third-party AI authentication technology.

Dividend and Funding Position

At 30 June 2026, the group held cash and cash equivalents of $37.2 million and had $60.5 million of available funding capacity. The Board declared a final fully franked dividend of 1.0 cent per share, bringing the total FY26 dividend to 2.0 cents per share, marking the group's sixth consecutive annual dividend at that level.

Conclusion

Cash Converters' FY26 results reflect a period of active transformation, with revenue and Operating EBITDA both increasing on the back of store network expansion and strong growth in the Cashies Loan product, while statutory NPAT declined due to higher depreciation, finance costs and transition-related expenses tied to the run-down of legacy lending books. The improvement in the Group Net Loss Rate and the substantial scaling of the Cashies Loan book point to a changing composition of the company's lending earnings, even as cash reserves declined significantly over the year. With the sixth consecutive annual dividend of 2.0 cents per share maintained and continued acquisition opportunities flagged in the UK market, the company's near-term results will likely continue to reflect this ongoing transition between legacy and new lending products alongside its expanding retail footprint.

FAQs

Q: What was Cash Converters' FY26 revenue growth?

A: Revenue increased 11% to $429.2 million in FY26, up from $385.3 million in FY25.

Q: Why did statutory NPAT decline in FY26?

A: Statutory NPAT fell 20% to $19.7 million, reflecting lower legacy lending earnings, higher depreciation and finance costs from the expanded store network, and $3.5 million after tax of transition and acquisition-related costs.

Q: How much did the Cashies Loan book grow?

A: The Cashies Loan book grew almost five times to $114.1 million from $23.1 million at 30 June 2025.

Q: What dividend did Cash Converters declare for FY26?

A: The Board declared a final fully franked dividend of 1.0 cent per share, bringing the total FY26 dividend to 2.0 cents per share, the group's sixth consecutive year at this level.

Q: How many corporate stores does Cash Converters now operate?

A: The group's corporate network comprises 200 stores across Australia, New Zealand and the UK, following the addition of 47 corporate stores during FY26.

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