Prime Financial Reports 60% Jump in Underlying EBITDA in H1 FY26
Prime Financial Group has reported a robust first half of FY26, with revenue climbing 31% and underlying EBITDA soaring 60%, driven by strategic acquisitions and organic growth.
- Revenue rises to $30.1 million, up 31% year-on-year
- Underlying EBITDA jumps 60% to $6.5 million with margin expansion
- EPS increases 161% to 1.20 cents per share
- Client base grows by 3,300 high-net-worth clients post-acquisition
- Interim fully franked dividend increased by 4% to 0.80 cents per share
Strong Growth Momentum
Prime Financial Group has delivered a compelling performance in the first half of FY26, reporting a 31% increase in revenue to $30.1 million. This growth reflects both organic expansion in its core advisory and wealth management services and the successful integration of the Lincoln Indicators acquisition completed in May 2025.
The company’s underlying EBITDA surged 60% to $6.5 million, with margins improving from 18% to 22%. This margin expansion signals effective cost management and operational leverage as Prime scales its platform across its key locations in Melbourne, Sydney, and Brisbane.
Acquisition Fuels Client Base and Earnings
Prime’s acquisition of Lincoln Indicators added approximately 3,300 high-net-worth clients, significantly broadening its customer base. Managing Director and Chairman Simon Madder highlighted that the acquisition is now fully integrated, contributing to the company’s robust earnings growth and cash flow generation.
Reported earnings per share (EPS) jumped 161% to 1.20 cents, while net operating cash flow nearly tripled to $3.2 million. These metrics underscore the company’s improving profitability and financial health, supported by a manageable debt level at 1.2 times underlying EBITDA.
Dividend and Future Outlook
Reflecting confidence in its earnings trajectory, Prime declared an interim fully franked dividend of 0.80 cents per share, a 4% increase on the prior corresponding period. The board’s dividend decision aligns with FY26 guidance and signals ongoing shareholder returns amid growth investments.
Looking ahead, Prime remains committed to expanding its integrated platform to enhance client experience and service delivery. The company is targeting $100 million in revenue with a 30% EBITDA margin by FY28-FY30, ambitions supported by continued EPS-accretive acquisitions and organic growth initiatives.
While the company’s strategic direction appears well-founded, investors will be watching closely how Prime balances acquisition integration with margin improvement and platform scalability in a competitive financial services landscape.
Bottom Line?
Prime Financial’s strong H1 momentum sets the stage for ambitious growth targets, but execution risks remain as acquisitions and margin expansion take centre stage.
Questions in the middle?
- How will Prime manage integration risks from future acquisitions while maintaining margin growth?
- What specific initiatives will drive the leap to a 30% EBITDA margin by FY28-FY30?
- How sustainable is the recent surge in cash flow amid ongoing investment in platform scalability?
