Bailador’s Strong HY26 Performance Hinges on Future Fee Realisations and Market Trends

Robust Half-Year Performance

Bailador Technology Investments Limited (ASX – BTI) has reported a solid set of results for the half-year ended December 2025, showcasing its ability to generate attractive returns from high-growth technology companies. The company’s post-tax net tangible asset (NTA) per share rose 9.5% to $1.76, reflecting strong portfolio gains net of all fees and taxes. This growth was complemented by the declaration of a fully franked interim dividend of 3.9 cents per share, reinforcing Bailador’s commitment to delivering a stable and attractive income stream to shareholders.

The interim dividend represents an annualised yield of 6.7%, or 8.9% on a grossed-up basis, aligning with the company’s target of paying 4% of pre-tax NTA annually. This consistent dividend policy, supported by fully franked payments, continues to be a key feature of Bailador’s shareholder value proposition.

Portfolio Growth and Cash Realisations

Bailador’s portfolio companies collectively generated $673 million in revenue over the past 12 months, marking a substantial 42% increase year-on-year. Notably, 85% of this revenue is recurring, underscoring the quality and resilience of the underlying businesses. The portfolio spans sectors such as digital healthcare, travel technology, property investment, and e-commerce, all benefiting from strong structural growth tailwinds.

Cash realisations during the half-year totalled $28 million, including a significant $25 million partial sale of the travel technology company SiteMinder at a 63% premium to its June 2025 closing price. These realisations continue Bailador’s track record of successful exits, delivering a combined 3.5x multiple on invested capital and an internal rate of return (IRR) of 23.2%. The company also received $0.7 million in franked dividends from portfolio company Updoc, further contributing to cash flow.

Valuations and Investment Activity

Bailador maintains conservative valuations across its private investments, supported by 38 third-party transactions all conducted at or above carrying values, with an average uplift of 26%. The company deployed $1 million in new investments during HY26 and recorded a $42 million total gain on investments, reflecting active portfolio management and selective capital deployment.

Profit before tax increased to $32.2 million, up from $25 million in the prior corresponding period, driven by portfolio appreciation and operational efficiencies. Management and performance fees rose in line with portfolio growth, though the performance fee accrued is not yet payable and remains subject to future valuation outcomes.

Outlook and Market Positioning

Bailador’s portfolio valuation remains attractively priced relative to the Bessemer Index, a respected benchmark for technology investments, trading at a discount while delivering comparable revenue multiples. The company’s focus on high-quality, recurring revenue businesses in sectors with strong secular growth trends positions it well to continue generating premium returns.

With a seasoned management team led by co-founders David Kirk and Paul Wilson, Bailador is well placed to navigate the evolving technology landscape. The company’s disciplined investment approach, combined with its ongoing commitment to dividends and capital realisations, offers investors a compelling blend of growth and income.