Bailador Technology Investments reported a 33% increase in net profit after tax for H1 FY26, driven by strong portfolio gains and a partial realisation of SiteMinder shares. The company declared a fully franked interim dividend of 3.9 cents per share, maintaining its steady dividend policy.
- 33% increase in net profit after tax to $23.2 million
- 27% growth in gains on financial assets to $41.7 million
- Strong valuation uplifts in Updoc, PropHero, and Hapana
- Partial realisation of SiteMinder shares generated $25 million cash
- Declared fully franked interim dividend of 3.9 cents per share
Strong Half-Year Performance
Bailador Technology Investments Limited (ASX, BTI) has delivered a robust financial performance for the half-year ended 31 December 2025, reporting a 33% increase in net profit after tax to $23.2 million, up from $17.5 million in the prior corresponding period. Gains on financial assets rose 27% to $41.7 million, reflecting strong portfolio momentum across both public and private holdings.
Portfolio Highlights and Realisations
Key contributors to the uplift included significant valuation increases in portfolio companies Updoc (up 20.5%), PropHero (45.6%), and Hapana (17.3%). SiteMinder, a publicly listed holding, saw its share price climb 37.2% over the period. Bailador crystallised gains by partially realising its SiteMinder position in September 2025, selling 25% of its stake for $25 million at a price 62.8% above the June 2025 closing price. This transaction generated an impressive internal rate of return of 36.9% and a multiple of 29.4 times the original investment cost.
Investment Activity and Valuation Approach
During the half, Bailador made a $1 million follow-on investment in Rosterfy, with plans to commit an additional $1 to $1.5 million in the second half of FY26. The company continues to value its portfolio using a combination of latest third-party investment prices, mark-to-market valuations for listed securities, and industry-standard valuation techniques for unlisted assets. This disciplined approach ensures valuations reflect current market conditions and commercial realities.
Dividend Declaration and Capital Position
In line with its dividend policy targeting a 4% annualised payout of net tangible assets pre-tax, Bailador declared a fully franked interim dividend of 3.9 cents per share, amounting to $5.8 million. This dividend will be paid on 5 March 2026 to shareholders on record as at 16 February 2026. The company’s net tangible assets per share increased to $1.954 pre-tax, up from $1.759 a year earlier, underscoring the strengthening capital base.
Governance and Fees
Bailador’s management fees and performance fees remain consistent with prior periods, with the latter contingent on portfolio gains exceeding an 8% hurdle rate. The company paid $5.3 million in management fees and accrued $7 million in performance fees during the half, reflecting strong portfolio appreciation. Directors’ fees and related party transactions were conducted on normal commercial terms.
Outlook
No significant events have occurred since the reporting period that would materially affect the company’s operations or financial position. Bailador remains focused on driving value through active portfolio management and selective follow-on investments, positioning itself well for the remainder of FY26.
Bottom Line?
Bailador’s strong half-year results and steady dividend reinforce its position as a leading growth capital investor in technology, but investors will watch closely for how it navigates valuation risks and performance fee triggers in the months ahead.
Questions in the middle?
- How will Bailador’s portfolio companies perform amid evolving market conditions in FY26 H2?
- What impact will the accrued but unpaid performance fees have on future cash flows?
- Will Bailador pursue further realisations or new investments to sustain growth momentum?