This article first appeared on GuruFocus .
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Revenue:Down 6% to 108.4 million.
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Customer Revenue (excluding float interest income):Down 4% to 79.4 million.
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Underlying EBITDA:Down 16% to 28 million.
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Cash Balance:Reduced by 11.5 million.
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Interest Income:Decreased 11% to 29 million.
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Gross Debit Volume (Europe):Increased 5% to 3.4 billion.
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Total Revenue (Europe):Declined 12% to 60.1 million.
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Customer Revenue (Europe):Declined 13%.
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Customer Revenue (Asia Pacific):Increased 10%.
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Gross Debit Volume (Asia Pacific):Increased 13%.
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Customer Revenue (North America):Up 1%.
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Pipeline Target:Exceeded with a result of 91.5 million.
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Overall Pipeline:Grown to 102 million.
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New Program Revenue Secured:Close to 24 million.
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Conversion Rate:Tracking at 51%.
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Float Balances:Increased 5% to 2.6 billion.
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Annualized Yield:3.1% compared to 3.7% in the prior period.
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Cash Flow:Underlying operating cash flow was 22.2 million, representing a 79% EBITDA to cash conversion ratio.
Release Date: February 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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EML Payments Ltd ( EMCHF ) is on track to complete its restructuring program by the end of FY26, laying the foundation for sustainable double-digit growth.
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The company has refreshed its management team, leading to increased output and efficiency.
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EML Payments Ltd ( EMCHF ) has a strong and growing sales pipeline, with a conversion rate of 51%, indicating effective business development efforts.
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The company is seeing significant cost savings from its global operations center, with a 35% reduction in costs compared to traditional market employment.
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Product development is now a structured, cross-functional activity, aligning with client needs and optimizing commercial outcomes.
Negative Points
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Revenue for the period was down 6% year-over-year, with customer revenue excluding float interest income down 4%.
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Interest income was lower in H1 due to lower central bank rates, impacting overall revenue.
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There has been a lag in new client onboarding over the last four months, leading to a tightening of the year's guidance range.
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The European segment experienced a 12% decline in total revenue, primarily due to terminated customers and lower interest revenue.
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The company's cash balance reduced by 11.5 million, reflecting various financial outflows, including a class action settlement payment.
Q & A Highlights
Q: How should we think about the rest of the year given the tightened guidance for the full year? A: Anthony Hynes, Executive Chairman, explained that while they have a strong pipeline, especially in the US, they are addressing issues that have caused delays. They are managing costs well and reinvesting savings into commercial ambitions. The guidance range was tightened deliberately, acknowledging the difficulty in reaching the top of the previous range, but they are optimistic about FY27.
Q: Are the aspirational targets for FY28 still in place? A: Anthony Hynes confirmed that the aspirational targets for FY28 remain intact.
Q: Can you provide more color on the pipeline conversion rates and expectations for the rest of the year? A: Anthony Hynes noted that the conversion rate is currently over 50%, which is better than expected. As they expand the pipeline and deploy Arlo, they expect continued growth. However, conversion rates might moderate as the pipeline grows. They are working on removing roadblocks and improving processes to maintain strong conversion rates.
Q: Is the focus on North America a targeted push, or is it due to other factors? A: Anthony Hynes attributed the success in North America to a strong team rather than a specific push into the market. They are addressing underperformance in Europe and expect improvements there as well.
Q: Will the statutory EBITDA number align more closely with the underlying EBITDA in the future? A: Anthony Hynes and Stuart Will, CFO, confirmed that they aim for a cleaner set of numbers going forward. They expect the majority of Project Arlo build costs to be completed by the end of calendar 2026, with ongoing development work beyond that. By FY27, they anticipate a closer alignment between statutory and underlying EBITDA.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
