Bravura Solutions has delivered a robust first half of FY26, posting nearly 10% revenue growth and a significant jump in profitability, while rewarding shareholders with a special dividend. The company also upgraded its full-year guidance, signalling confidence in its growth trajectory.
- Underlying revenue up 9.8% to $140 million
- CEBITDA more than doubled to $34.2 million
- Interim and special dividends total 10.23 cents per share
- Recurring revenue grows 5%, driven by pricing and client expansion
- FY26 guidance upgraded for revenue and cash EBITDA
Strong Financial Momentum
Bravura Solutions (ASX, BVS) has reported a strong first half for FY26, with underlying revenue climbing 9.8% to $140 million compared to the prior corresponding period. This growth was accompanied by a remarkable 129% increase in cash EBITDA to $34.2 million, reflecting the company’s improved operational efficiency and disciplined cost management.
The company’s underlying net profit after tax surged 71% to $25.9 million, underscoring the positive impact of both revenue growth and expense optimisation. Bravura’s cash balance remains healthy at $64.5 million, with no debt on the books, positioning it well for future investments or shareholder returns.
Shareholder Returns and Capital Management
In recognition of its strong cash flow generation, Bravura declared an interim dividend of 5.77 cents per share alongside a special dividend of 4.46 cents per share, totalling 10.23 cents per share for FY26. These dividends are payable in March 2026 and continue the company’s track record of returning capital to shareholders since resuming distributions.
The company is actively reviewing its capital allocation strategy under the guidance of its new CEO, balancing shareholder returns with organic and inorganic growth opportunities. This includes potential debt facilities and share buybacks, reflecting a holistic approach to capital management.
Recurring Revenue and Market Expansion
Recurring revenue, which accounts for 58% of total revenue, grew 5% year-on-year. This growth was driven by improved pricing and expansion within the existing client base, offsetting attrition related to the prior sale of a licence to Fidelity International. Bravura’s focus on deepening relationships with its top customers is evident, with the top 25 clients representing 80% of revenue.
Notably, Bravura has made a strategic entry into the UK Workplace market, securing a key anchor client. This move aligns with the company’s strategy to grow alongside its customers as they expand geographically and into new service areas.
Upgraded Guidance Reflects Confidence
Reflecting its strong first-half performance, Bravura upgraded its FY26 guidance. Revenue is now expected to be between $265 million and $275 million, with cash EBITDA forecasted between $55 million and $65 million. This revision comes despite a more conservative foreign exchange assumption for the Australian dollar against the British pound in the second half.
The company also highlighted ongoing investments in hosting infrastructure and software development, signalling a commitment to supporting future growth and operational resilience.
Outlook and Strategic Focus
Bravura’s outlook remains positive, with a clear focus on enhancing operational structures to drive better customer outcomes and profitability. The company is actively assessing both organic growth and acquisition opportunities to accelerate its market presence, particularly in new regions like the UK.
With a new CEO at the helm and a disciplined approach to capital and cost management, Bravura Solutions appears well-positioned to sustain its momentum through the remainder of FY26 and beyond.
Bottom Line?
Bravura’s upgraded guidance and special dividend highlight a company confident in its growth and capital strategy, but investors will watch closely how new market ventures unfold.
Questions in the middle?
- How will Bravura’s entry into the UK Workplace market impact future revenue streams?
- What inorganic growth opportunities is the new CEO prioritising?
- Will Bravura maintain its strong dividend policy amid increased investment plans?