Harmoney Doubles Profit Target, Launches Game-Changing Auto Loan

Profit Guidance Reaffirmed Amid Strong Growth

Harmoney has confidently reaffirmed its FY26 profit guidance, targeting a cash net profit after tax (NPAT) of $12 million. This represents a striking 111% increase from the $5.7 million achieved in FY25, underscoring the company’s accelerating momentum. The growth is underpinned by a robust 320% compound annual growth rate (CAGR) in its loan book, which is expected to exceed $900 million by year-end.

Net interest margins are projected to hold steady between 9% and 10%, while risk-adjusted income is anticipated to reach approximately 6%, reflecting improved credit quality and operational efficiency. These metrics highlight Harmoney’s ability to scale profitably in a competitive consumer finance landscape.

Innovating Auto Finance with a Digital Twist

In a strategic move to diversify and expand its product suite, Harmoney launched a secured auto loan product in late September 2025. This offering is designed to disrupt traditional auto financing by empowering cash buyers with funds directly deposited into their bank accounts, enabling them to negotiate better deals and drive away on the same day.

The product eliminates the common dealer finance conflicts and complexities by offering 100% vehicle cost financing with no deposit required. Its fully digital application process promises speed and convenience, positioning Harmoney as a forward-thinking player in the auto finance sector.

Capital Structure Supports Ambitious Growth

Harmoney’s capitalisation strategy is equally compelling. The company is well-positioned to support a loan book growth target of $1.5 billion without the need for additional equity. This is achieved through reinvested profits and a diversified funding base that includes borrowings from three of Australia’s major banks and an established asset-backed securities issuer.

Notably, Harmoney plans to reduce its corporate debt by $7.5 million by December 2025 and refinance its debt facilities on materially improved terms, which should enhance financial flexibility and reduce funding costs. The company’s cost-to-income ratio has improved, reflecting operational leverage as the loan book expands.

Outlook and Market Positioning

With a loan book growing in both Australia and New Zealand, and credit metrics outperforming market averages, Harmoney is carving out a distinctive niche in consumer finance. The secured auto loan launch signals a strategic pivot to capture new market segments and deepen customer engagement.

Investors will be watching closely to see how the new product performs in the coming quarters and how effectively the company manages its refinancing and debt reduction plans. The company’s ability to sustain growth while maintaining strong credit discipline will be key to validating its ambitious guidance.