Can Harmoney Maintain Momentum After Founder Steps Back and Debt Grows?

Record Profit and Platform Transformation

Harmoney Corp Limited has delivered a landmark financial performance for FY25, reporting a Cash Net Profit After Tax (Cash NPAT) of $5.7 million; a remarkable 742% increase over the previous year. This leap was largely powered by the successful completion of the Stellare® 2.0 platform rollout, which replaced legacy systems in both Australia and New Zealand. The new platform has enabled faster loan processing, greater scalability, and operational leverage, setting the stage for sustained growth.

Strong Growth and Margin Expansion

Loan originations surged significantly, with Australian new customer originations up 40% in FY25 and New Zealand originations jumping over 50% in the final quarter following the platform’s full deployment. This growth was achieved alongside a reduction in the cost-to-income ratio to 19%, highlighting the efficiency gains from automation. Harmoney also reported an improved Net Interest Margin of 10.3% in the first quarter of FY26, up from 9.3% in FY25, and an expanded Risk-Adjusted Income margin, reflecting both revenue growth and disciplined cost management.

Innovative Product Launch and Funding Strength

Building on its technological foundation, Harmoney launched a secured car loan product in early FY26, leveraging the "money in seconds" capability of Stellare® 2.0. This product empowers customers to act as cash buyers, bypassing traditional dealer finance channels. Early market response has been positive, with plans underway to boost awareness through educational campaigns. Concurrently, Harmoney secured a $15 million corporate debt facility from a major Australian bank, refinancing previous debt at lower costs and demonstrating strong institutional confidence. The company also repaid $7.5 million in debt from operating cash flows, further strengthening its balance sheet.

Governance and Board Evolution

Harmoney has enhanced its governance framework to keep pace with its technological sophistication, introducing an AI Governance and Controls policy to ensure ethical use of machine learning and artificial intelligence. The board saw a notable transition with founder Neil Roberts stepping down from executive roles to become a non-executive director, allowing the company to retain his expertise while evolving its leadership structure. Investor confidence is reflected in a significant rotation of the shareholder register, with post-IPO investors now comprising over half the register.

Outlook and Market Position

Reaffirming its FY26 guidance, Harmoney expects to double its Cash NPAT to $12 million, supported by ongoing strong loan growth, margin expansion, and operational efficiencies. The company’s unique 100% consumer-direct lending model, underpinned by its proprietary technology, positions it well in the competitive personal lending market across Australia and New Zealand. As it continues to innovate and strengthen its funding base, Harmoney is poised for another year of robust performance.