Want to see AU:EML full AI Analyst Report?
Top Page
EML Payments
(Sydney:EML)
Select Model
Select Model
Rating:45Neutral
Price Target:
AU$0.33
▼(-61.07% Downside)
Action:Reiterated
Date:04/14/26
The score is weighed down primarily by weak financial performance (revenue decline, losses, and sharply lower free cash flow) and a clearly bearish technical trend (price below key moving averages with negative MACD). The earnings call provides some offset via improving pipeline and execution initiatives, but tightened guidance and near-term cash pressures limit upside, while valuation remains difficult to assess positively due to negative earnings.
Positive Factors
Strong sales pipeline and conversion
A $102m pipeline with a 51% conversion rate and ~$24m secured indicates a durable, predictable source of program revenue. High conversion and visible launches provide multi‑period revenue visibility and reduce reliance on one‑off wins, supporting medium‑term topline recovery if onboarding executes.
Negative Factors
Declining revenue and negative profitability
A material revenue decline and persistent negative margins undermine internal funding capacity and impede reinvestment. Negative profitability pressures ROE and leaves the business dependent on restructuring and pipeline conversion to restore sustainable earnings over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong sales pipeline and conversion
A $102m pipeline with a 51% conversion rate and ~$24m secured indicates a durable, predictable source of program revenue. High conversion and visible launches provide multi‑period revenue visibility and reduce reliance on one‑off wins, supporting medium‑term topline recovery if onboarding executes.
Read all positive factors
EML Payments (EML) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$130.20M
Dividend YieldN/A
Average Volume (3M)1.10M
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth5.43%
EPS Growth-667.97%
CountryAU
Employees430
SectorTechnology
Sector Strength88
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.17
Shares Outstanding388,661,800
10 Day Avg. Volume1,008,169
30 Day Avg. Volume1,097,160
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)3.03
Price to Sales (P/S)2.81
P/FCF Ratio41.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.66Price Target Upside-21.43% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.05
Revenue Forecast (FY)AU$224.51M
EML Payments Business Overview & Revenue Model
Company Description
EML Payments Limited provides payment solutions platform in Australia, Europe, and North America. It offers reloadable and non-reloadable prepaid payment solutions; prepaid payment solutions services; and undertakes provision of prepaid payment se...
How the Company Makes Money
EML makes money primarily by earning fees tied to the issuance, processing, and ongoing management of payment programs that run on its platforms (e.g., prepaid/debit/virtual card programs, gift card and incentive/disbursement programs). Key revenu...
EML Payments Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Neutral
The call balanced significant operational and strategic progress (pipeline growth, 51% conversion, Project Arlo build, GlobalOps cost savings and product reactivation) against near-term financial pressures (revenue down 6%, underlying EBITDA down 16%, interest income decline, Europe headwinds, and large one-off cash outflows including a provisional class action settlement). Management highlighted clear remediation actions, tightened guidance, and a path to cleaner statutory results next year. Given demonstrated execution on restructuring, improving commercial momentum, and credible technology timelines, offset by current profitability and cash headwinds, the tone is cautiously constructive but pragmatic.Positive Updates
Progress on Restructuring and EML 2.0
Company completed significant H1 work on FY '26 restructuring (Project Arlo & organizational changes), refreshed management, standardized toolkits, and reports being on track to close major restructuring by June 30, 2026.
Negative Updates
Revenue Decline
Group revenue down 6% on PCP to $108.4 million; customer revenue (ex float interest) down 4% to $79.4 million, with some impact from terminated customers from H2 FY '24 causing suppressed growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Progress on Restructuring and EML 2.0
Company completed significant H1 work on FY '26 restructuring (Project Arlo & organizational changes), refreshed management, standardized toolkits, and reports being on track to close major restructuring by June 30, 2026.
Read all positive updates
Company Guidance
Management tightened FY‑26 guidance to a $58–$60m range (from $58–$64m) citing onboarding delays but reiterated FY‑28 targets remain aspirationally intact; they target growing the sales pipeline to ~$125m by year‑end (pipeline at $102m, having exceeded a $90m target earlier and secured nearly $24m of new program revenue), with a current conversion rate of ~51% (10.3m launched, $13.5m scheduled to launch, much of it in the next 60 days). They expect existing‑client growth of ~4–5% (ex‑runoff), plan to stand up Arlo in the U.K. in the coming months with core build substantially complete by calendar year‑end and migration through late ’26/’27 (aiming to cut ICT spend from ~$30m to ~$20m), and flagged near‑term cash items including a H1 cash reduction of $11.5m, a provisional class‑action outflow of $40.9m, PCSIL repayments (next ~$6.6m), and an H1 underlying operating cash flow of $22.2m (79% EBITDA‑to‑cash conversion).EML Payments Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 156.12M | 157.94M | 167.53M | 254.43M | 232.52M | 192.40M |
| Gross Profit | 69.04M | 102.82M | 116.10M | 130.26M | 128.01M | 98.76M |
| EBITDA | -1.62M | -20.59M | 32.49M | -243.10M | 37.55M | 36.54M |
| Net Income | -66.43M | -53.39M | -26.48M | -284.82M | -4.80M | -28.70M |
Balance Sheet | ||||||
| Total Assets | 2.95B | 2.68B | 2.48B | 2.99B | 2.68B | 2.29B |
| Cash, Cash Equivalents and Short-Term Investments | 47.81M | 1.93B | 43.06M | 2.33B | 1.78B | 1.55B |
| Total Debt | 86.99M | 54.08M | 90.64M | 98.49M | 91.41M | 45.13M |
| Total Liabilities | 2.80B | 2.54B | 2.32B | 2.82B | 2.25B | 1.87B |
| Stockholders Equity | 147.70M | 146.44M | 159.02M | 174.55M | 437.12M | 414.89M |
Cash Flow | ||||||
| Free Cash Flow | 65.92M | 10.79M | 4.84M | 380.04M | 248.76M | 34.24M |
| Operating Cash Flow | 66.29M | 16.75M | 14.07M | 391.78M | 262.82M | 46.86M |
| Investing Cash Flow | -6.54M | 39.24M | -34.18M | -877.00K | -71.14M | -25.99M |
| Financing Cash Flow | 24.54M | -43.29M | -7.97M | -2.17M | 46.25M | -623.00K |
EML Payments Technical Analysis
Negative
0.84
Price Trends
0.35
Negative
0.45
Negative
0.66
Negative
Market Momentum
>-0.01
Negative
48.62
Neutral
60.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EML, the sentiment is Negative. The current price of 0.84 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.35, and above the 200-day MA of 0.66, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 60.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:EML.
EML Payments Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | AU$67.59M | 11.11 | 7.00% | ― | 7.68% | ― | |
54 Neutral | AU$49.02M | 50.97 | -30.20% | ― | 31.09% | ― | |
48 Neutral | AU$3.77M | -5.33 | -112.53% | ― | ― | ― | |
46 Neutral | AU$7.98M | -0.13 | -53.64% | ― | 6.96% | 31.11% | |
45 Neutral | AU$130.20M | -1.97 | -45.17% | ― | 5.43% | -667.97% | |
45 Neutral | AU$67.70M | -4.11 | -1.40% | ― | -30.24% | -52.96% |
* Technology Sector Average
AU:EML
EML Payments
0.34
-0.75
-68.98%
AU:CCA
Change Financial Ltd
0.07
-0.02
-17.98%
AU:OVT
IOUpay Limited
0.01
-0.23
-95.83%
AU:CGO
CPT Global Limited
0.09
0.03
47.54%
AU:CCR
Credit Clear Limited
0.13
-0.14
-50.94%
AU:ITS
Spirit Technology Solutions Ltd.
0.35
-0.12
-25.53%
EML Payments Corporate Events
EML Payments Issues Unquoted Performance Rights Under Employee Incentive Plan
Jul 10, 2026
EML Payments Limited has notified the market of the issue of unquoted performance rights under its employee incentive scheme. The company is issuing a total of 2,749,363 performance rights across two tranches dated April 15, 2026 and June 16, 2026...
EML Payments Issues 1.79 Million Unquoted Performance Rights Under Employee Scheme
Jun 22, 2026
EML Payments has notified the market of the issue of 1,791,239 unquoted performance rights under its employee incentive scheme. These performance rights, which are subject to transfer restrictions and not quoted on the ASX, were issued on 16 June ...
EML Payments Seeks ASX Quotation for New Employee Incentive Shares
May 10, 2026
EML Payments Limited has applied to the ASX for quotation of 138,889 new ordinary fully paid shares issued on 5 May 2026 under its employee incentive scheme. The modest share issuance reflects the company’s ongoing use of equity incentives t...
EML Payments advances ADI path as regulators extend interim guarantee deadline
Apr 30, 2026
EML Payments’ subsidiary EML Payment Solutions Limited is working through an Australian prudential process as some of its prepaid card programs are deemed purchased payment facilities by regulators. The company is seeking authority to conduc...
EML Issues Over 3.2 Million Unquoted Performance Rights Under Incentive Scheme
Apr 21, 2026
EML Payments Limited has notified the market of the issue of unquoted performance rights under its employee incentive scheme, with more than 3.2 million rights granted on 15 and 16 April 2026. These securities are subject to transfer restrictions ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.