Highlights

  • EML Payments (ASX:EML) completed its multi-year transformation program while focusing on future growth opportunities.
  • FY26 underlying EBITDA declined as restructuring impacts and Revenue pressures affected earnings.
  • A $109 million new-business pipeline provides potential growth opportunities as the company enters FY27.
  • Management expects EBITDA improvement in FY27 as cost initiatives and new programs progress.

EML Payments (ASX:EML) delivered its FY26 results following a multi-year restructuring period aimed at rebuilding the Business after regulatory challenges and operational changes.

The payments technology company reported lower revenue and EBITDA during the year, reflecting ongoing adjustments across its operations. However, management highlighted progress from its transformation program, a strengthened cost base and a growing pipeline of new opportunities as the foundation for future recovery.

The key focus now shifts towards converting potential growth opportunities into revenue while maintaining operational discipline.

FY26 Results

For the year ended 30 June 2026, EML Payments reported group revenue of $206.8 million, down 6% compared with the prior year.

Underlying EBITDA declined 18% to $48.3 million, reflecting lower revenue contributions, reduced interest income and ongoing business transition impacts.

The company reported a statutory net loss from continuing operations of $19.7 million, improving from the $53.0 million loss recorded in the previous year.

The result included restructuring-related impacts as EML completed its transformation initiatives, including changes to its operating structure and cost base.

No Dividend was declared for FY26 as the company continued focusing on financial flexibility and business recovery.

Transformation Progress

FY26 represented an important stage in EML’s broader business reset.

The company completed its EML 2.0 transformation program, which involved Leadership changes, operational restructuring and the development of a lower-cost global operating model.

A new operations centre in Sofia contributed to cost efficiencies, while changes across the organisation aimed to simplify processes and improve scalability.

EML also continued investing in technology through Project Arlo, a multi-year platform initiative designed to replace legacy systems with a unified global technology infrastructure.

The program is expected to support improved efficiency, scalability and product development over time.

Business Performance

Performance varied across EML’s operating regions during FY26.

Europe remained the company’s largest segment but experienced pressure, with revenue declining and EBITDA impacted by lower activity levels and ongoing market challenges.

Asia-Pacific delivered revenue growth, although Earnings were affected by operating adjustments and Investment requirements.

North America was the strongest-performing segment, with EBITDA increasing significantly due to cost reductions and operational improvements.

The company also continued strengthening its customer base, renewing several major contracts and progressing new customer programs.

Growth Pipeline

A key part of EML’s future strategy is its new-business pipeline.

At the end of FY26, the company identified a pipeline valued at approximately $109 million, including opportunities at various stages of decision-making.

Management aims to expand this pipeline further while focusing on converting opportunities into launched, revenue-generating programs.

Contracts secured since July 2025 represent additional future revenue opportunities, with several programs expected to commence during FY27.

Beyond traditional payments operations, EML is also developing new growth opportunities through Project Arlo and its investment in mobility payments partner Tendren.

The Tendren Partnership aims to expand EML’s exposure to mobility and open-loop payment solutions, with commercial activity expected to progress during FY27.

Financial Position

EML ended FY26 with cash reserves of approximately $37.8 million, reflecting the impact of settlement payments and other Balance Sheet adjustments during the year.

The company continues prioritising cash generation, Working Capital Management and maintaining financial flexibility.

Management has provided FY27 underlying EBITDA guidance of $50 million to $54 million, representing a potential improvement from FY26 levels.

The company has also highlighted a longer-term focus on improving free Cash Flow generation as transformation benefits begin flowing through.

Investor Focus

Key areas investors will monitor include:

  • Conversion of the $109 million pipeline into signed and launched customer programs.
  • Delivery of FY27 EBITDA guidance and evidence of earnings recovery.
  • Progress of Project Arlo and expected efficiency benefits.
  • Stabilisation of European operations after recent challenges.
  • Cash generation, cost management and balance sheet improvement.

Risks

EML continues to face risks associated with rebuilding investor confidence following previous regulatory challenges.

Revenue growth remains dependent on winning new contracts, retaining existing customers and successfully launching new programs.

The payments sector is highly competitive, with changes in customer behaviour, regulatory requirements and technology trends influencing long-term performance.

Project Arlo also introduces execution risk due to the scale and complexity of replacing legacy systems across multiple regions.

Interest income remains another variable, with changing rates potentially affecting earnings contribution.

Outlook

EML Payments enters FY27 with a more streamlined operating structure and a clearer focus on growth opportunities.

The FY26 result showed progress in completing the transformation program, but the next stage will require stronger revenue momentum and successful conversion of the company’s pipeline into commercial outcomes.

Management’s FY27 guidance points towards a recovery year, supported by cost improvements, technology investment and new business opportunities.

For investors following ASX Fintech and payments stocks, EML’s future performance will depend on whether the company can transition from restructuring-led improvements towards sustainable revenue and earnings growth.