EML Payments Ltd. (AU:EML)
ASX:EML
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EML Payments
(Sydney:EML)
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Rating:45Neutral
Price Target:
AU$0.53
▼(-36.79% Downside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by weak financial performance (revenue contraction, ongoing losses, and sharply weaker free cash flow) and bearish technicals (price below key moving averages with negative MACD). Valuation offers limited support given losses (negative P/E) and no dividend data, while the earnings call provides only partial offset via improving pipeline/cost initiatives but with tightened guidance and notable near-term cash outflows.
Positive Factors
Large sales pipeline and high conversion
A $102m pipeline with ~51% conversion and $10.3m already launched indicates durable commercial traction. High conversion reduces sales risk and supports predictable revenue ramp over the next 2–6 months as signed programs move to activation and become recurring service and transaction revenue.
Negative Factors
Revenue contraction and weak profitability
Material revenue declines and persistent negative margins undermine the firm's ability to achieve sustainable earnings. A near-total collapse in free cash flow signals difficulty funding organic growth and tech initiatives internally, increasing dependence on external financing or structural cost-out to restore profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Large sales pipeline and high conversion
A $102m pipeline with ~51% conversion and $10.3m already launched indicates durable commercial traction. High conversion reduces sales risk and supports predictable revenue ramp over the next 2–6 months as signed programs move to activation and become recurring service and transaction revenue.
Read all positive factors
EML Payments (EML) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$211.74M
Dividend YieldN/A
Average Volume (3M)1.10M
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth-5.87%
EPS Growth-540.18%
CountryAU
Employees458
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding388,522,920
10 Day Avg. Volume1,008,169
30 Day Avg. Volume1,097,160
Financial Highlights & Ratios
PEG Ratio-0.08
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$1.31Price Target Upside55.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.06
Revenue Forecast (FY)AU$217.50M
EML Payments Business Overview & Revenue Model
Company Description
EML Payments Limited provides payment solutions platform in Australia, Europe, and North America. It operates in three segments: General Purpose Reloadable, Gift and Incentives, and Digital Payments. The General Purpose Reloadable segment offers r...
How the Company Makes Money
EML makes money primarily by powering payment programs (for businesses and program partners) that issue and manage prepaid/debit/virtual cards and related stored-value products. Revenue is generally generated from a mix of: (1) Program/service fee...
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
0.69
Negative
0.78
Negative
0.91
Negative
Market Momentum
-0.04
Negative
27.90
Positive
22.55
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 0.59, above the 50-day MA of 0.69, and below the 200-day MA of 0.91, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 27.90 is Positive, neither overbought nor oversold. The STOCH value of 22.55 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
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Sector (61)
AU:EML
EML Payments
0.55
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-31.45%
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0.08
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48.08%
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Credit Clear Limited
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EML Payments Corporate Events
EML Director Anthony Hynes Increases Stake with $606,000 Share Purchase
Mar 12, 2026
EML Payments has disclosed a change in director Anthony Hynes’ indirect interest in the company’s shares, following a series of on-market trades in early March 2026. Through 449 Investments Pty Ltd as trustee for the A R Hynes Family ...
EML Payments Seeks ASX Quotation for New Employee Incentive Shares
Mar 4, 2026
EML Payments Limited has applied to the ASX for quotation of 103,333 new ordinary fully paid shares issued on 25 February 2026. The securities were issued under an employee incentive scheme and will be quoted on the market, modestly expanding the ...
Wilson Asset Management exits substantial holder position in EML Payments
Mar 3, 2026
Wilson Asset Management Group has filed a notice stating it has ceased to be a substantial holder in EML Payments Limited as of 28 August 2025. The change in substantial holding, disclosed under Australian Corporations Act requirements, indicates ...
EML Payments Flags Profit Dip but Touts Growing Pipeline and Restructuring Progress
Feb 24, 2026
EML Payments reported first-half FY26 revenue of $108.4 million, down 6% year on year, and underlying EBITDA of $28 million, a 16% decline, with a swing to a statutory net loss of $4 million. The weaker results were attributed to the run-off of cl...
EML Payments Seeks ASX Quotation for New Employee Incentive Shares
Feb 2, 2026
EML Payments Limited has applied for quotation on the ASX of 286,245 new fully paid ordinary shares issued on 27 January 2026 under an employee incentive scheme. The additional stock, to be traded under the existing EML code, modestly increases th...
EML Payments Sets Date for 2026 Half-Year Results and Investor Briefing
Jan 19, 2026
EML Payments has announced it will release its 2026 half-year financial results and an accompanying investor presentation on 25 February 2026, followed by a teleconference briefing for shareholders and the investment community led by its Executive...
EML Payments Seeks ASX Quotation for New Employee Incentive Shares
Jan 16, 2026
EML Payments Limited has applied for quotation on the ASX of 407,922 new fully paid ordinary shares issued on 7 January 2026 under its employee incentive scheme. The move marginally increases the company’s quoted share capital and reflects o...
EML Payments Seeks ASX Quotation for Shares Issued Under Employee Scheme
Jan 8, 2026
EML Payments Limited has applied to the ASX for quotation of 270 new ordinary fully paid shares, issued on 15 September 2025 under an employee incentive scheme. The small parcel of securities to be quoted indicates routine equity issuance linked t...
EML Payments to Issue 3.5 Million Unquoted Performance Rights Under Employee Incentive Plan
Jan 8, 2026
EML Payments Limited has notified the market of the planned issue of a total of 3,495,914 unquoted performance rights under its employee incentive scheme, with specific tranches scheduled for issue in October and November 2025. These securities, w...
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.