Bravura Solutions (ASX:BVS) management pointed to a “strong” first half of fiscal 2026, highlighting improved profitability, revenue growth and continued cash generation, alongside the declaration of both an interim and a special dividend.
Chief Executive Officer Colin Greenhill, who said he has been in the role for about five weeks, was joined on the call by Chief Financial Officer Neil Montford. Greenhill said the company’s strategy of expanding work with existing customers is continuing to deliver additional revenue and profitability in the current year and is expected to support future growth.
First-half performance and key financial metrics
He provided “underlying” financial results adjusted for the prior year’s Fidelity International license sale transaction. For the first half of FY2026, Bravura reported:
- Cash EBITDA: AUD 34.2 million, up AUD 14.2 million versus first half FY2025
- Underlying NPAT: AUD 25.9 million, up AUD 14.6 million versus first half FY2025
- Revenue: AUD 140 million, up 9.8% versus first half FY2025
- Recurring revenue: AUD 81.3 million, up 5% versus first half FY2025
- Net closing cash: AUD 64.5 million with no debt
Greenhill also emphasized that the company’s cost discipline has offset inflationary pressures, and that revenue growth “has not resulted in an increase in the cost base.” He said the full run rate of cost savings delivered during FY2025 benefited the current half, contributing to higher cash EBITDA.
Customer activity, recurring revenue drivers, and attrition
Management repeatedly emphasized growth from existing customers. Greenhill cited examples including partnering with a current U.K. customer to expand into the U.K. workplace area and supporting two major customers with client integration projects. He also noted Midwinter’s “innovation in digital advice” in Australia, which he said has been implemented across several major superannuation funds.
On recurring revenue growth, Greenhill said the company has been increasing engagement with customers on future roadmaps to help align and prioritize product development. He also said Bravura is seeking “fair prices” for software and development, and that approximately two-thirds of the growth in recurring revenue over the last year has come from pricing increases.
Management also discussed customer attrition. Greenhill said attrition reflects changing customer business models, markets, and in some cases ownership, and that the figures include the impact of the Fidelity International sale on recurring revenue. He referenced three expected “material attritions” previously highlighted in late 2022, noting that:
- The first of the three clients departed several years ago.
- The second client departed just over a month ago, at the end of the reporting period; the full impact will be seen from the start of the current period in 2026.
- The third client remains under discussion and “is yet to confirm that they will depart.”
Greenhill said the company has “more than covered” the impact of the second customer’s exit in second-half revenue, which he said supported a guidance update issued on Feb. 9, 2026. In response to an analyst question about another client referenced previously, management said there was no further information.
Dividends and capital management
Bravura declared an interim dividend of AUD 0.0577 per share (AUD 25.9 million), which management said represents 100% of first-half NPAT, and a special dividend of AUD 20 million (AUD 0.0446 per share). Greenhill said the dividends reflect confidence in the company’s “profitability and stability” and a commitment to shareholder returns.
The dividends will be unfranked, and the dividend reinvestment plan remains suspended. The record date is Feb. 18, 2026, and payment for both dividends is expected on March 12, 2026.
Greenhill said capital management and allocation are under consideration to ensure Bravura has appropriate support to grow, noting that over the past two years the company has returned more than AUD 0.40 per share through a mix of capital return and dividends.
Guidance upgraded again for FY2026
Management said the company upgraded its full-year FY2026 guidance earlier in the week, marking the second upgrade to its original FY2026 outlook. Bravura now forecasts:
- Revenue: AUD 280 million to AUD 285 million
- Cash EBITDA: AUD 69 million to AUD 73 million
- PP&E: expected to increase to AUD 4 million for full-year FY2026
Discussing the upgrade, Greenhill attributed improved conditions primarily to increased engagement with existing customers, leading to higher project revenue, and to contract and pricing realignments. Montford added that professional services work and software enhancements can create higher “run revenue,” while also increasing the company’s costs to maintain software, contributing to the rationale for pricing adjustments.
M&A comments and cost base perspective
Asked about inorganic growth, Greenhill said the company would consider opportunities “closely associated to the value chain” it operates in and that any transaction would need to meet “very good and clear hurdles,” including being “immediately accretive.” On the likelihood of deals, he said he was still learning the landscape but noted there are transactions and potential transactions in the market.
On costs, Greenhill said the company’s shift toward operating as distinct business units allows management to assess performance and investment needs at a more granular level. While acknowledging broad upward cost pressure in software markets, he said maintaining a flat cost base indicates the company has been doing “a pretty good job,” but he did not offer further specifics given his short tenure.
Greenhill closed by saying he has been meeting with customers, employees, and stakeholders and is “excited to be joining Bravura at this time,” adding that early customer sentiment has been positive.
About Bravura Solutions (ASX:BVS)
Bravura Solutions Limited engages in the development, licensing, and maintenance of administration and management software applications for the wealth management and funds administration sectors in Australia, New Zealand, the United Kingdom, and internationally. The company operates through two segments: Wealth Management and Funds Administration. It offers Sonata, a wealth management solution for the administration of a range of wealth management products; Sonata Alta, a digital operating model, which provides clients control over their customer's data, operations, and end customer experiences; Bravura Digital; Orchestrator that manages complex administrative processes; Garradin, a private wealth and portfolio administration solution for the administration of retail and wholesale wealth management, trusts and estates, SMSFs, managed accounts, fund accounting, and tax; and ePASS, an online portal that provides online services for superannuation members and employers.
