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EML Payments
(Sydney:EML)
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Rating:43Neutral
Price Target:
AU$0.24
▼(-1.67% Downside)
Action:Reiterated
Date:08/19/26
The score is held down primarily by weak financial performance—ongoing losses and a sharp deterioration in FY2026 cash flow—plus a technically weak price trend below major moving averages. These are partially offset by a more constructive earnings-call outlook with FY27 EBITDA guidance and a defined plan toward FY28 free cash flow, but near-term execution and cash pressures keep the overall risk profile elevated.
Positive Factors
Revenue rebound and gross margin
FY2026 revenue rebounded 33% year on year and gross margin stayed near 60%, showing the platform can recover demand while retaining attractive economics. If sustained, this provides a stronger base to absorb overheads and convert growth into improved profitability.
Negative Factors
Persistent unprofitability
Persistent annual net losses and a negative FY2026 net margin show that revenue scale has not yet translated into sustainable bottom-line profitability. Continued losses reduce internal funding capacity and leave earnings more dependent on successful operational improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound and gross margin
FY2026 revenue rebounded 33% year on year and gross margin stayed near 60%, showing the platform can recover demand while retaining attractive economics. If sustained, this provides a stronger base to absorb overheads and convert growth into improved profitability.
Read all positive factors
EML Payments (EML) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$95.42M
Dividend YieldN/A
Average Volume (3M)1.59M
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth-6.74%
EPS Growth64.64%
CountryAU
Employees430
SectorTechnology
Sector Strength88
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.05
Shares Outstanding389,474,300
10 Day Avg. Volume1,926,558
30 Day Avg. Volume1,593,451
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.91
Price to Sales (P/S)0.57
P/FCF Ratio-3.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.00Price Target Upside316.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.02
Revenue Forecast (FY)AU$214.60M
EML Payments Business Overview & Revenue Model
Company Description
EML Payments Limited provides payment solutions platform in Australia, Europe, and North America. It offers reloadable and non-reloadable prepaid payment solutions; prepaid payment solutions services; and undertakes provision of prepaid payment se...
How the Company Makes Money
EML primarily makes money by operating payment programs for businesses and earning fees tied to the issuance, processing, and ongoing management of prepaid and gift card products. Key revenue streams generally include: (1) program management and p...
EML Payments Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 02, 2027
Earnings Call Sentiment Neutral
The call presented a mixed but constructive outlook: management has completed significant restructuring, strengthened leadership, delivered measurable cost savings and outlined a credible path to positive free cash flow (guidance: underlying EBITDA $50–54m for FY27 and pro forma FY28 free cash flow $30–35m). However, FY26 financials missed expectations with revenue declines, an 18% drop in underlying EBITDA, an 11% decline in interest income, notable one-off cash outflows (including a $40.9m class action settlement) and implementation/partner-related activation delays that weighed on near-term performance. The company’s improved operational footing, pipeline momentum and product initiatives (Arlo, mobility/Tendren) provide upside, but execution risk and near-term cash/headline earnings pressure balance those positives.Positive Updates
Leadership, Restructuring and Cost Savings
Restructuring largely completed with 51 senior positions refreshed; global operations center in Sofia reached 31 FTE and delivered a 35% like-for-like cost saving; global HRIS platform deployed and single global performance framework embedded, supporting operational efficiency and centralized operating model benefits.
Negative Updates
Revenue and EBITDA Declines
Headline revenue for continuing operations reported as $26.8 million, down 6% on FY '25; customer revenue $150 million, down 4%; underlying EBITDA declined 18% to $48.3 million, missing initial internal expectations.
Read all updates
Q4-2026 Updates
Positive
Negative
Leadership, Restructuring and Cost Savings
Restructuring largely completed with 51 senior positions refreshed; global operations center in Sofia reached 31 FTE and delivered a 35% like-for-like cost saving; global HRIS platform deployed and single global performance framework embedded, supporting operational efficiency and centralized operating model benefits.
Read all positive updates
Company Guidance
Management guided FY'27 underlying EBITDA of $50–54m, longer‑term overheads around $110m and expects interest yields to improve by ~20bps; Project Arlo non‑recurring spend is forecast at ~$15.7m this year (then $2.4m and $1.0m in subsequent years) with the CFO noting ~ $17m of Arlo investment in FY'27 and ~$19m of other recorded cash outflows, interest expense of ~$8–8.5m and no material net‑debt improvement expected in FY'27. On full Arlo deployment they forecast at least $12m of annualised overhead savings and pro‑forma free cash flow of $30–35m in FY'28, while commercial targets include growing the annualised pipeline from $109m to circa $150m and sustaining a ~35% conversion rate; FY'26 reported metrics to note were underlying EBITDA $48.3m, customer revenue $150m, interest revenue $56.7m, net overheads $104.1m, cash $37.8m (down $21.6m) and stored float $2.2bn.EML Payments Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
52
Neutral
Cash Flow
33
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 207.59M | 157.94M | 167.53M | 254.43M | 232.52M |
| Gross Profit | 124.64M | 102.82M | 116.10M | 130.26M | 128.01M |
| EBITDA | 3.02M | -20.59M | 32.49M | -243.10M | 37.55M |
| Net Income | -19.67M | -53.39M | -26.48M | -284.82M | -4.80M |
Balance Sheet | |||||
| Total Assets | 2.49B | 2.68B | 2.48B | 2.99B | 2.68B |
| Cash, Cash Equivalents and Short-Term Investments | 37.75M | 1.93B | 43.06M | 2.33B | 1.78B |
| Total Debt | 89.34M | 54.08M | 90.64M | 98.49M | 91.41M |
| Total Liabilities | 2.36B | 2.54B | 2.32B | 2.82B | 2.25B |
| Stockholders Equity | 130.09M | 146.44M | 159.02M | 174.55M | 437.12M |
Cash Flow | |||||
| Free Cash Flow | -33.82M | 10.79M | 4.84M | 380.04M | 248.76M |
| Operating Cash Flow | -32.80M | 16.75M | 14.07M | 391.78M | 262.82M |
| Investing Cash Flow | -24.12M | 39.24M | -34.18M | -877.00K | -71.14M |
| Financing Cash Flow | 32.16M | -43.29M | -7.97M | -2.17M | 46.25M |
EML Payments Technical Analysis
Negative
0.24
Price Trends
0.31
Negative
0.34
Negative
0.54
Negative
Market Momentum
-0.02
Positive
35.84
Neutral
57.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EML, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.31, and below the 200-day MA of 0.54, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.84 is Neutral, neither overbought nor oversold. The STOCH value of 57.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:EML.
EML Payments Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$77.05M | 18.02 | 5.40% | ― | 28.01% | 2.38% | |
65 Neutral | AU$31.07M | 40.53 | 6.26% | ― | 15.94% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | AU$3.77M | -5.33 | -92.86% | 7.58% | ― | ― | |
46 Neutral | AU$52.23M | -2.23 | -28.68% | ― | -37.44% | -1340.48% | |
43 Neutral | AU$95.42M | -4.83 | -14.16% | ― | -6.74% | 64.64% | |
42 Neutral | AU$1.18M | -0.02 | -122.17% | 900.00% | -60.21% | 42.32% |
* Technology Sector Average
AU:EML
EML Payments
0.25
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-76.78%
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EML Payments Corporate Events
Regal Partners Exits Substantial Holder Position in EML Payments
Sep 4, 2026
Regal Partners Limited and its associated entities have disclosed that they have ceased to be substantial shareholders in EML Payments Ltd, following a series of share disposals completed between 21 August and 2 September 2026. The sales, executed...
S&P Dow Jones Indices Sets Broad Changes in September S&P/ASX Rebalance
Sep 4, 2026
SP Dow Jones Indices has announced the September 2026 quarterly rebalance of the SP/ASX indices, with changes taking effect before the market opens on 21 September. The flagship SP/ASX 20 will remain unchanged, but several constituent adjustments ...
EML Payments Lodges Updated Corporate Governance Statement With ASX
Aug 17, 2026
EML Payments Limited, an ASX-listed financial technology company, provides prepaid card and payments solutions to corporate and institutional customers and maintains a strong focus on governance and regulatory compliance to support investor confid...
EML Payments Flags Earnings Dip but Sees Cash Flow Upside After Restructuring
Aug 17, 2026
EML Payments reported FY26 revenue of $206.8 million, down 6% on the prior year, and underlying EBITDA of $48.3 million, an 18% decline, as onboarding delays, recalibrated contract revenues and softer trading in gift, incentive and UK government p...
EML Payments Seeks ASX Quotation for Employee Incentive Shares
Jul 23, 2026
EML Payments Limited has applied to the ASX for quotation of 312,500 ordinary fully paid shares issued on 1 July 2026. The new securities have been issued under an employee incentive scheme, signalling continued use of equity-based compensation an...
EML Payments Seeks ASX Quotation for New Employee Incentive Shares
Jul 22, 2026
EML Payments Limited has applied for quotation of 500,000 ordinary fully paid shares on the ASX following their issue on 2 July 2026. The new securities have been issued under an employee incentive scheme and will be quoted, indicating ongoing use...
EML Payments Issues Unquoted Performance Rights Under Employee Incentive Plan
Jul 10, 2026
EML Payments Limited has notified the market of the issue of unquoted performance rights under its employee incentive scheme. The company is issuing a total of 2,749,363 performance rights across two tranches dated April 15, 2026 and June 16, 2026...
EML Payments Issues 1.79 Million Unquoted Performance Rights Under Employee Scheme
Jun 22, 2026
EML Payments has notified the market of the issue of 1,791,239 unquoted performance rights under its employee incentive scheme. These performance rights, which are subject to transfer restrictions and not quoted on the ASX, were issued on 16 June ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.