Highlights

  • FY26 statutory NPAT rose 49.4% to AUD 110.9 mn.
  • Underlying NPAT increased to AUD 63.1 mn while cash EBITDA reached AUD 77.1 mn.
  • Recurring revenue rose 6.9% to AUD 165 mn and represented 58% of total revenue.
  • Bravura announced a new AUD 50 mn buyback and FY27 cash EBITDA guidance of AUD 84-94 mn.

Bravura Solutions (ASX:BVS) has moved from emergency restructuring to a Business that is again discussing Capital returns and Margin expansion. FY26 statutory profit rose to AUD 110.9 mn and underlying NPAT increased sharply to AUD 63.1 mn, while cash EBITDA reached AUD 77.1 mn. Headline revenue fell because FY25 included a large one-off Fidelity licence payment, but underlying trading revenue improved and Recurring Revenue continued to grow. The result confirms that the cost reset has worked. The next question is whether Bravura can keep expanding profit when price increases, rather than new client volumes, have contributed heavily to recurring growth.

Recent Developments

FY26 total revenue was AUD 282.6 mn and cash EBITDA was AUD 77.1 mn. Underlying NPAT rose to AUD 63.1 mn from AUD 24.4 mn. Recurring revenue increased 6.9% to AUD 165 mn, while professional services contributed AUD 108.3 mn.

Bravura declared an 8.31-cent final ordinary Dividend and 6.69-cent special dividend, taking second-half distributions to 15 cents. It also announced a new AUD 50 mn buyback and secured AUD 100 mn of HSBC debt facilities.

Why It Matters

The apparent revenue decline against FY25 is largely a comparison issue because the prior year included AUD 56.2 mn of one-off Fidelity licence revenue. Excluding that item, FY26 revenue grew from the underlying base.

The stronger margin profile reflects cost reduction, pricing and project work. Management says savings from the restructuring programme have exceeded the original target, giving the business a lower operating cost base.

Cash Flow remains central to assessing the quality of earnings.

The Assets supporting the business remain central to valuation and financial flexibility.

Investment decisions will shape the next stage of growth.

Company Overview

Bravura provides wealth-management and funds-administration software, including the Sonata platform. Its customer base is heavily international, particularly in the United Kingdom, and the company added an AIM listing in July 2026.

Colin Greenhill became chief executive in 2026 as the company moved from turnaround execution toward growth and Shareholder returns.

Financial Snapshot

FY26 revenue was AUD 282.6 mn, underlying NPAT AUD 63.1 mn and cash EBITDA AUD 77.1 mn. Net cash fell to AUD 50.3 mn from AUD 58.7 mn a year earlier, while the group added AUD 100 mn of secured Debt facilities.

FY27 guidance is revenue of AUD 280-300 mn and cash EBITDA of AUD 84-94 mn, implying further margin expansion even if top-line growth remains modest.

The company's software Assets remain central to recurring customer relationships and the valuation of the operating business.

What to Watch

Client retention, recurring revenue growth and project activity are the key indicators. Investors will also watch how Bravura balances dividends and Buybacks against a smaller cash buffer and new debt.

Risks

Client attrition remains meaningful, with three exits costing about AUD 16.5 mn of revenue. Heavy reliance on pricing rather than Volume growth may become harder to sustain, while competition from larger wealth-technology providers remains intense.

What Could Sustain Bravura's Turnaround

Bravura's turnaround is now visible in underlying earnings, not just restructuring milestones. The next test is whether the business can sustain margin gains while improving client growth and preserving financial flexibility.