EML Payments Posts 9% Revenue Growth and 13% EBITDA Rise in FY25
EML Payments reported a 9% revenue increase and 13% rise in underlying EBITDA for FY25, driven by strategic partnerships and operational transformation. The company sets a steady growth outlook for FY26 despite expected interest revenue headwinds.
- FY25 revenue up 9% to $220.9 million
- Underlying EBITDA rises 13% to $58.6 million
- Customer revenue grows 3%, interest revenue up 28%
- Global technology partnership with Visa PISMO for Project Arlo
- Class action settlement pending court approval; credit facilities extended
Strong Financial Performance Despite Statutory Loss
EML Payments Limited (ASX, EML) has delivered a solid financial performance for the full year ended 30 June 2025, reporting a 9% increase in total revenue to $220.9 million and a 13% rise in underlying EBITDA to $58.6 million. This growth was underpinned by a 3% increase in customer revenue and a notable 28% jump in interest revenue, reflecting successful yield improvement strategies and higher float balances amid stabilizing central bank rates.
However, the company recorded a statutory net loss after tax of $53.0 million, primarily due to one-off costs including restructuring, legacy legal matters, and investments in its transformational initiatives.
Operational Transformation and Strategic Partnerships
EML is progressing its ambitious EML 2.0 transformation, centered on Project Arlo, a single global technology platform designed to replace three legacy systems with a unified, scalable, and highly configurable solution. This initiative aims to digitize manual processes and support complex use cases at scale, positioning EML for future growth.
In a significant development, EML signed a global technology partnership with Visa PISMO to support Project Arlo, enhancing its capabilities in transaction processing and ledger management. The company also refreshed its leadership team and expanded its global commercial operations to drive revenue momentum.
Regional Performance and Cash Flow Strength
Regionally, Europe showed modest revenue growth despite some client losses, while North America experienced a 10% increase in gross debit volume and stable revenue yield. Asia Pacific faced a slight revenue decline due to lower breakage rates and interest income but saw volume growth in certain product lines.
EML’s cash position strengthened significantly, with cash balances rising 46% to $59.3 million. The company generated $42 million in underlying operating cash flow, supported by disciplined treasury management, including a bond yield lock program that fixes yields on approximately 45% of the float for three years.
Outlook and Guidance
Looking ahead to FY26, EML expects underlying EBITDA between $58 million and $63 million, with customer revenue growth forecast at 4-5%. Interest revenue is anticipated to decline by around $6 million due to expected lower central bank rates, partially offset by float growth and treasury activities. Overhead costs are projected to remain flat as efficiency gains continue to be embedded.
The company also announced the settlement of a class action lawsuit, subject to court approval, and extended its credit facilities by $55 million to December 2028, providing additional financial flexibility.
Bottom Line?
EML’s FY25 results underscore a company in transition, balancing near-term costs with strategic investments that could unlock sustained growth in a competitive payments landscape.
Questions in the middle?
- How will Project Arlo’s rollout impact EML’s competitive position and margins in FY26 and beyond?
- What are the implications of the class action settlement for EML’s financial and reputational risk profile?
- How sensitive is EML’s interest revenue outlook to further changes in global central bank policies?
