Praemium Limited reported a 5.7% revenue increase to $110.5 million and a 21.1% jump in funds under administration to $77.9 billion for FY26, driven by strong high-net-worth segment growth and the integration of OneVue. The acquisition of Technotia Laboratories and a major technology restructure signal a sharpened focus on innovation and cost efficiency.
- Total Funds Under Administration up 21.1% to $77.9 billion
- Revenue rises 5.7% to $110.5 million with underlying profit after tax up 2.9%
- Technotia acquisition boosts AI and machine learning capabilities
- Technology division restructure to cut $9 million in annual salary costs
- Final fully franked dividend declared at 1.25 cents per share
Strong Growth in Funds Under Administration and Revenue
Praemium Limited (ASX:PPS) has posted a robust FY26 performance, with total funds under administration (FUA) soaring 21.1% to $77.9 billion. This growth is anchored by a 10.8% rise in platform FUA to $34.0 billion and an even stronger 30.5% jump in non-custodial portfolio administration through Scope+ to $43.9 billion. Revenue from ordinary activities climbed 5.7% to $110.5 million, underpinning a 2.9% increase in underlying profit after tax to $15.4 million.
Despite these gains, statutory net profit fell sharply by 45.2% to $6.5 million, reflecting significant restructuring and acquisition-related expenses. These one-off costs mask the underlying operational momentum Praemium has built across its business.
OneVue Integration Completes Platform Consolidation
The full integration of the OneVue platform was completed in December 2025, marking a major milestone in Praemium’s strategy to consolidate its platform offerings. This transition transferred $3.1 billion of OneVue FUA into Praemium’s core platforms, with $1.9 billion moving to Spectrum, $1.0 billion to Praemium SMA, and $0.2 billion to Scope.
While the migration led to expected adviser attrition and net outflows of $296 million, the resulting platform is simpler and features a higher-quality FUA base. This integration supports Praemium’s position as a leading provider of sophisticated, flexible custodial solutions tailored to high-net-worth (HNW) clients.
Technotia Acquisition Drives Technology Transformation
In a strategic move to accelerate innovation, Praemium acquired Technotia Laboratories in January 2026 for $7 million in shares. Technotia’s expertise in machine learning and complex financial technology is central to Praemium’s ambition to enhance automation, streamline workflows, and deliver faster product development cycles.
The integration of Technotia has already prompted a significant restructure of Praemium’s technology division, including the closure of its Armenian operations and a reduction in Australian headcount. These changes are expected to reduce annual technology salary costs by approximately $9 million from FY27, delivering meaningful operating leverage as the platform scales.
Two founding Technotia principals have transitioned to part-time consulting roles, with revised incentive arrangements tied to independent technical and financial reviews. This arrangement underscores Praemium’s cautious approach to managing integration risks while harnessing Technotia’s capabilities.
High-Net-Worth Segment and Enterprise Relationships Fuel Momentum
Praemium’s focus on the fast-growing HNW segment is paying dividends. Its Spectrum IDPS solution, launched in late 2024, generated over $2 billion in gross inflows during FY26 and continues to gain traction among financial advisers serving complex client needs.
The non-custodial Scope+ platform also strengthened its market leadership, with portfolio numbers rising 33.7% to 12,793. The onboarding of Bell Potter Private Wealth and multi-year renewals with Morgan Stanley Wealth Management and JBWere highlight Praemium’s growing foothold in the stockbroking and private wealth sectors.
Financial Discipline Supports Dividend and Shareholder Returns
Underlying EBITDA increased 14.5% to $32.1 million, with the EBITDA margin expanding to 29.1%. This reflects operating leverage as revenue growth outpaces cost increases, despite investments in technology and integration.
In recognition of its financial strength, Praemium declared a fully franked final dividend of 1.25 cents per share, matching the interim dividend paid earlier in the year. The company’s balance sheet remains robust with net assets of $109.5 million and cash holdings of $30.1 million.
Board Renewal and Leadership Transition
The company saw notable board changes in FY26, welcoming Katrina Efthim and Justin Lipton as new non-executive directors and appointing Matthew Quinn as Chair-elect, set to succeed Barry Lewin upon his retirement after nine years as Chair. These appointments bring fresh perspectives in financial services, technology, and governance to support Praemium’s growth ambitions.
Regulatory and Operational Risks Remain Under Watch
Praemium continues to navigate ongoing regulatory challenges, including cross-claims from Diversa Trustees related to First Guardian investments. While these proceedings remain at an early stage with uncertain outcomes, no provisions have been recognised to date.
The company maintains a comprehensive risk management framework covering strategic, financial, operational, regulatory, technology, and people risks, aiming to safeguard its platform integrity and client trust.
Technology Investment and Platform Evolution Set to Shape Future
Praemium’s investment in a new core technology platform, supported by the Technotia acquisition and internal development, is expected to enhance scalability, efficiency, and client experience over the medium term. The company is targeting a staged rollout beginning in late 2026, which could be a key catalyst for future growth and margin expansion.
Meanwhile, the transformation of the Praemium SMA Superannuation Fund, leveraging the new platform capabilities, signals an important long-term growth opportunity in the superannuation sector.
With a disciplined cost structure, strong enterprise relationships, and a growing HNW client base, Praemium is positioning itself to capture structural tailwinds in Australian wealth management.
Bottom Line?
Praemium’s FY26 results reflect a company in transition, balancing strong platform growth and technology investment with short-term restructuring costs. The success of its new core platform rollout and the integration of Technotia will be critical to sustaining momentum and delivering shareholder value in FY27 and beyond.
Questions in the middle?
- How will the new core technology platform rollout impact adviser adoption and client retention?
- What are the potential financial implications if independent reviews do not validate Technotia’s revised incentive payments?
- How might ongoing regulatory proceedings related to First Guardian investments affect Praemium’s risk profile?