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Omni Bridgeway
(Sydney:OBL)
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Rating:62Neutral
Price Target:
AU$2.00
▲(38.89% Upside)
Action:Reiterated
Date:04/15/26
The score reflects a strong valuation (very low P/E) and a positive earnings-call outlook with improving profitability, fee momentum, and cost control. Offsetting factors are uneven underlying financial-statement performance (notably revenue volatility and mixed cash flow) and technically overbought indicators that add near-term risk despite an upward trend.
Positive Factors
Low leverage / strong balance sheet
A very low debt-to-equity ratio (0.08) provides durable financial flexibility for a litigation funder. It reduces refinancing and solvency risk, supports capacity to hold through long legal durations, and preserves ability to capitalise new funds or absorb adverse case outcomes without forcing distress sales.
Negative Factors
Severe revenue volatility / lumpy recoveries
A 90% revenue decline highlights the lumpy, outcome-dependent nature of litigation finance. Such episodic revenue materially impairs predictability of cashflow, complicates budgeting and capital returns, and makes multi-period forecasting and dividend/distribution planning structurally challenging for investors.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
A very low debt-to-equity ratio (0.08) provides durable financial flexibility for a litigation funder. It reduces refinancing and solvency risk, supports capacity to hold through long legal durations, and preserves ability to capitalise new funds or absorb adverse case outcomes without forcing distress sales.
Read all positive factors
Omni Bridgeway (OBL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$489.50M
Dividend YieldN/A
Average Volume (3M)561.29K
Price to Earnings (P/E)1.0
Beta (1Y)0.11
Revenue Growth-14.04%
EPS GrowthN/A
CountryAU
Employees167
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.63
Shares Outstanding289,642,200
10 Day Avg. Volume470,891
30 Day Avg. Volume561,287
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.57
Price to Sales (P/S)29.29
P/FCF Ratio22.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.26
Revenue Forecast (FY)AU$143.00M
Omni Bridgeway Business Overview & Revenue Model
Company Description
Omni Bridgeway Limited is a Sydney, Australia-based firm that specializes in providing financial backing for legal disputes, enforcement actions, and various litigation matters across a broad international footprint, encompassing Australia, the Un...
How the Company Makes Money
OBL primarily makes money by financing legal claims and then earning a return that is contingent on successful case outcomes (i.e., recoveries from settlements or judgments). Its key revenue streams typically include: (1) Litigation/arbitration fu...
Omni Bridgeway Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial performance: strong investment proceeds ($223.7M), large YoY profit improvement (NPAT $84.5M vs $18.7M), growing fee income, disciplined cost control (OpEx materially below budget) and solid portfolio metrics (MOIC 2.6x, 107% fair-value conversion, AUM $5.5B). Key strategic moves (AI adoption, team incentives, senior hires) and progress on capital formation further support growth. Offsetting these positives are discrete headwinds: significant FX (-$133M) and MLE (-$63M) fair-value impacts, reduced OBL-only deployments (−30%), incomplete fund closings with timing risk, and a legacy Westgem liability delaying distributions. On balance, the favorable investment returns, revenue/fee momentum and cost discipline outweigh the fundraising timing and one-off fair-value pressures, leading to a constructive outlook.Positive Updates
Strong investment proceeds and statutory profitability
Investment proceeds of $223.7 million in 1H FY'26 drove statutory net profit after tax of $84.5 million (earnings per share $0.29). Statutory NPAT rose from $18.7 million in 1H'25 to $84.5 million (≈+352% YoY).
Negative Updates
Negative FX impact on portfolio fair value
Significant FX movements (strong USD) caused a negative $133 million impact on total portfolio fair value during the period, reducing reported fair-value gains.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong investment proceeds and statutory profitability
Investment proceeds of $223.7 million in 1H FY'26 drove statutory net profit after tax of $84.5 million (earnings per share $0.29). Statutory NPAT rose from $18.7 million in 1H'25 to $84.5 million (≈+352% YoY).
Read all positive updates
Company Guidance
Management guided that Omni Bridgeway is on track to meet FY'26 and medium‑term targets: 1H results show investment proceeds of $223.7m (OBL‑only $37.8m), 45 completions, MOIC 2.6x and a fair‑value conversion ratio of 107%; AUM is $5.5bn (up 5% since June), portfolio fair value $3.8bn (OBL‑only ~$800m); statutory total income $179.5m, NPAT $84.5m, EPS $0.29, annualized ROE 23.9% and book value per share $3.20 (up 7%); fee income was $18m for the half (31% YoY increase), tracking to a FY'26 target of ~$35m (management is targeting ~$38m for the next 12 months) and fee income has a 28% CAGR since 2023; cash OpEx was < $35m for the half (OBL‑only cash OpEx $34.4m) with full‑year OpEx expected below the $80m FY'26 budget (platform expense target $75m next 12 months); cost coverage was just over 50% for the period and is targeted to reach 70% by FY'28; liquidity and capital formation guidance included OBL‑only cash and receivables of $149m (up $3m since June), an additional close of USD $228m for Funds 4/5 Series 2 plus $8.2m of sidecar capital, an expected full close in the coming period, and a P50 Monte‑Carlo cash outlook of ~ $80m to OBL‑only from completions with associated deployments just over $20m, with management expecting positive free cash flow for the year ahead.Omni Bridgeway Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
50
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 91.89M | 13.00M | 71.05M | 11.47M | 21.87M | 6.08M |
| Gross Profit | 34.19M | 2.89M | 1.33M | -59.54M | -35.10M | -48.70M |
| EBITDA | 26.31M | 533.66M | 26.07M | 6.68M | 8.84M | -24.71M |
| Net Income | 466.32M | 349.80M | -87.52M | -31.66M | -45.65M | -25.45M |
Balance Sheet | ||||||
| Total Assets | 1.26B | 1.19B | 1.24B | 1.14B | 1.08B | 1.09B |
| Cash, Cash Equivalents and Short-Term Investments | 187.18M | 181.34M | 135.88M | 114.79M | 158.97M | 141.34M |
| Total Debt | 49.81M | 55.40M | 271.80M | 199.58M | 161.93M | 151.37M |
| Total Liabilities | 334.03M | 323.13M | 441.97M | 354.73M | 336.29M | 323.60M |
| Stockholders Equity | 733.92M | 668.59M | 250.72M | 348.85M | 328.89M | 331.87M |
Cash Flow | ||||||
| Free Cash Flow | -28.20M | 17.05M | -87.96M | -296.67M | -188.69M | -231.79M |
| Operating Cash Flow | -28.09M | 17.09M | -87.88M | -130.43M | -74.55M | -97.92M |
| Investing Cash Flow | 257.10M | 284.10M | 62.06M | 30.56M | 163.47M | 46.80M |
| Financing Cash Flow | -293.24M | -273.69M | 47.47M | 57.82M | -74.29M | 3.66M |
Omni Bridgeway Technical Analysis
Positive
1.44
Price Trends
1.65
Positive
1.64
Positive
1.59
Positive
Market Momentum
>-0.01
Negative
53.97
Neutral
56.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OBL, the sentiment is Positive. The current price of 1.44 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.65, and below the 200-day MA of 1.59, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 56.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:OBL.
Omni Bridgeway Peers Comparison
UnderperformOutperform
Sector (68)
AU:OBL
Omni Bridgeway
1.67
0.25
17.67%
AU:CCP
Credit Corp Group Limited
12.78
-1.57
-10.96%
AU:PNC
Pioneer Credit Ltd
0.70
0.16
29.63%
Omni Bridgeway Corporate Events
Omni Bridgeway Performance Rights Lapse, Trimming Potential Future Equity
Apr 8, 2026
Omni Bridgeway Limited has notified the market that 284,201 performance rights, designated under the ASX code OBLAB, have lapsed as of March 31, 2026. The securities ceased because the conditions attached to these performance rights were not met, ...
Omni Bridgeway Issues 49,083 New Shares on Conversion of Unquoted Securities
Apr 8, 2026
Omni Bridgeway Limited has notified the market of the issue of 49,083 new ordinary fully paid shares following the conversion or exercise of previously unquoted equity securities. The shares, which were issued on 31 March 2026, expand the company&...
Omni Bridgeway Issues New Unquoted Performance Rights Under Incentive Plan
Apr 8, 2026
Omni Bridgeway Limited has notified the market of the issue of 956 unquoted performance rights under its employee incentive scheme, effective 7 April 2026. The new performance rights, which will not be quoted on the ASX, reflect the company’...
Omni Bridgeway Director Increases Equity Stake Through On-Market Share Purchases
Apr 8, 2026
Omni Bridgeway has disclosed changes in the security holdings of director Raymond van Hulst, reflecting both his direct and indirect interests in the company’s ordinary shares. The notice outlines incremental on-market acquisitions of Omni B...
Omni Bridgeway Seeks ASX Quotation for New Shares Issued on Vested Performance Rights
Apr 6, 2026
Omni Bridgeway Limited has applied for quotation on the ASX of 410,221 new ordinary fully paid shares, issued on April 7, 2026, in satisfaction of vested performance rights. The issuance modestly increases the company’s share capital and ref...
Omni Bridgeway Issues New Shares on Performance Rights Vesting and Confirms Disclosure Compliance
Apr 6, 2026
Omni Bridgeway has issued 410,221 new ordinary fully paid shares following the vesting of employee performance rights, expanding its share base as part of its remuneration and incentive arrangements. The company has confirmed that these shares wer...
Challenger Ceases to Be Substantial Holder in Omni Bridgeway
Mar 31, 2026
Challenger Limited has notified Omni Bridgeway Limited and the ASX that it has ceased to be a substantial holder in Omni Bridgeway. The change in substantial holding status, formally lodged via a statutory notice signed by Challenger’s compa...
Greencape Capital Exits Substantial Holder Status in Omni Bridgeway
Mar 31, 2026
Greencape Capital has notified the market that it has ceased to be a substantial shareholder in Omni Bridgeway, lodging the required notice with the ASX. The change indicates that Greencape’s holding in the litigation funder has fallen below...
Omni Bridgeway boosts market transparency with new analyst data pack
Mar 25, 2026
Omni Bridgeway has released an Introduction to Omni Bridgeway and Analyst Data Pack, fulfilling guidance it gave alongside its first-half 2026 results. The materials, accompanied by a recorded management presentation and QA, are designed to give i...
Omni Bridgeway Director Feldmanis Increases Indirect Shareholding
Mar 24, 2026
Omni Bridgeway director Christine Feldmanis has increased her indirect shareholding in the company through an on-market purchase by Feldmanis Associates Pty Ltd, as trustee for the Feldmanis Superannuation Fund. She acquired 50,000 ordinary fully...
Omni Bridgeway Posts Strong 1H26 Returns and Builds Capital Amid Favourable Litigation Funding Climate
Jan 29, 2026
Omni Bridgeway reported strong investment performance for the first half of FY26, delivering A$223.7 million in total cash investment proceeds, a 2.6x multiple-on-invested-capital across 45 full and partial completions, and A$17.7 million in manag...
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.