EML Payments (EMCHF) Q4 2026 Earnings Report

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.

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.