Kelly Partners Group Holdings Limited has reported a robust 17% increase in revenue for the first half of 2026, driven by strategic acquisitions and expanding international operations, particularly in the US.
- Revenue up 17% to $76 million in 1H26
- Underlying NPATA increased 12.8% to $5.6 million
- Six acquisitions completed across Australia, US, and Philippines
- US operations now contribute approximately 15% of group revenue
- Digital transformation initiatives including Microsoft 365 Copilot rollout
Strong Financial Momentum
Kelly Partners Group Holdings Limited (ASX – KPG) has delivered a solid first half in 2026, with revenue climbing 17% to $76 million compared to the same period last year. Underlying net profit after tax and amortisation (NPATA) attributable to shareholders rose 12.8% to $5.6 million, reflecting steady operational performance amid ongoing expansion efforts.
The company’s compound average revenue growth rate since inception now stands at an impressive 30.3%, underscoring its consistent trajectory in the competitive accounting services sector.
Strategic Acquisitions Fuel Global Expansion
Kelly Partners has aggressively pursued growth through acquisitions, completing six partnerships in 1H26 across Australia, the United States, and the Philippines. These acquisitions added between $18.7 million and $22.2 million in annualised revenue, representing up to 16.5% of the group’s FY25 revenue base.
Notably, the US market is becoming a significant contributor, now accounting for approximately 15% of group revenue. The firm’s footprint in the US includes marquee partnerships in California and Florida, servicing around 8% of McDonald’s franchisees nationally. This expansion aligns with Kelly Partners’ ambition to become Australia’s global accounting firm for private business owners.
Operational and Digital Enhancements
Beyond acquisitions, Kelly Partners has invested in digital transformation to enhance productivity and client engagement. The rollout of Microsoft 365 Copilot across the group in September 2025 has automated routine workflows, while a new mobile app launched for McDonald’s franchisee clients in October 2025 aims to improve service accessibility and interaction.
The group’s Net Promoter Scores (NPS) of +77 in Australia and +72 in the US significantly outperform industry averages, reflecting strong client satisfaction and loyalty.
Financial Position and Future Outlook
While revenue and earnings have grown, Kelly Partners’ net debt increased by 31.9% to $77.1 million, primarily due to borrowings for acquisitions and partner buy-ins. The gearing ratio rose to 1.79 times underlying EBITDA, a level that investors will watch closely as the company integrates new businesses and manages debt servicing.
Founder and CEO Brett Kelly emphasised the company’s long-term vision to build a differentiated global accounting network, leveraging its Partner-Owner-Driver model and focusing on private business owners. The group’s recent ranking as the 17th largest accounting firm in Australia by the Australian Financial Review further cements its rising profile.
With a total shareholder return of approximately 765.6% since its 2017 IPO, Kelly Partners continues to demonstrate strong value creation, though the next phase will test its ability to sustain growth while managing integration and financial leverage.
Bottom Line?
Kelly Partners’ bold expansion and digital investments position it well for global growth, but rising debt and integration risks warrant close investor attention.
Questions in the middle?
- How will Kelly Partners manage integration challenges from multiple recent acquisitions?
- What is the company’s strategy to sustain profitability amid rising debt levels?
- Can Kelly Partners further penetrate the US market and replicate its Australian success?