Omni Bridgeway (OBL) AI Stock Analysis

• Market Cap: $392.27M
• Dividend Yield: N/A
• Average Volume (3M): 398.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: 456.81%
• EPS Growth: -97.24%
• Country: AU
• Employees: 202
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): -0.12
• Shares Outstanding: 288,432,740
• 10 Day Avg. Volume: 247,206
• 30 Day Avg. Volume: 398,809
• PEG Ratio: 0.77
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: AU$1.50 ▲(10.29%Upside)

Omni Bridgeway's overall score is 43, primarily impacted by its challenging financial performance and negative technical indicators. The company's substantial losses and leverage are concerning, while technical analysis indicates bearish trends.

Omni Bridgeway Business Overview & Revenue Model

Company Description

Omni Bridgeway Limited engages in investing in litigation and dispute resolution and enforcement matters in Australia, the United States, Canada, Asia, Europe, the Middle East, and Africa. It offers dispute funding solutions, including bankruptcy, commercial, intellectual property, investor recoveries, class/group actions, appeals, and whistleblower. The company also provides arbitration financing; funding for companies; litigation financing; judgment enforcement; law firm financing; and distressed asset recovery solutions. It serves individual claimants, law firms, corporations, sovereigns, and multilateral institutions. The company was formerly known as IMF Bentham Limited and changed its name to Omni Bridgeway Limited in March 2020. Omni Bridgeway Limited was founded in 1986 and is based in Sydney, Australia.

How the Company Makes Money

Omni Bridgeway makes money primarily through its litigation finance activities. The company provides funding for legal claims and earns returns by receiving a portion of the proceeds from successful cases. This revenue model involves investing in legal cases where they assess the potential for a favorable outcome and then finance legal fees, expenses, and sometimes operational costs for the claimants. Upon a successful resolution, Omni Bridgeway recoups its investment along with a pre-agreed share of the settlement or award. Key revenue streams include portfolio finance, single-case funding, and enforcement funding. The company's earnings are also influenced by partnerships with law firms and corporates, as well as its expertise in assessing and managing legal risks.

Omni Bridgeway Financial Statement Overview

Summary

Omni Bridgeway's financial performance is concerning due to substantial losses and negative cash flows, despite notable revenue growth. The balance sheet shows increased leverage, raising caution about financial stability.

Income Statement

Omni Bridgeway's income statement reveals a challenging financial period. While the company experienced a significant increase in revenue from $11.47 million in 2023 to $82.86 million in 2024, its net income is deeply negative at -$87.52 million. The gross profit margin improved to 27.93% in 2024, but both EBIT and EBITDA margins are low due to substantial operating expenses. The revenue growth is promising but is overshadowed by significant losses.

Balance Sheet

The balance sheet indicates a stable asset base with total assets at approximately $1.24 billion in 2024. However, the debt-to-equity ratio increased to 1.08, suggesting higher leverage. Stockholders' equity decreased significantly, reflecting financial strain. The equity ratio stands at 20.27%, indicating a lower reliance on equity financing. The financial leverage and declining equity are concerning.

Cash Flow

Cash flow analysis highlights negative operating cash flow of -$87.87 million in 2024, indicating operational challenges. Free cash flow also remains negative, although there is a slight improvement from the prior year. The operating cash flow to net income ratio is negative, raising concerns about cash generation capacity relative to reported losses. Cash management remains a critical issue.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	132.66M	121.10M	11.47M	21.87M	6.08M	23.13M
Gross Profit	79.07M	23.14M	-59.54M	-35.10M	-48.70M	-25.57M
EBITDA	32.32M	26.07M	8.33M	9.26M	-24.71M	53.35M
Net Income	-72.51M	-87.52M	-31.66M	-45.65M	-25.45M	-11.54M
Balance Sheet
Total Assets	1.42B	1.24B	1.14B	1.08B	1.09B	1.15B
Cash, Cash Equivalents and Short-Term Investments	207.10M	135.88M	114.79M	157.28M	141.34M	194.38M
Total Debt	274.99M	271.80M	199.58M	161.93M	151.37M	149.47M
Total Liabilities	557.74M	441.97M	354.73M	336.29M	323.60M	383.26M
Stockholders Equity	255.26M	250.72M	348.85M	328.89M	331.87M	336.00M
Cash Flow
Free Cash Flow	43.70M	-87.96M	-296.67M	-188.69M	-231.79M	-242.31M
Operating Cash Flow	43.77M	-87.88M	-130.43M	-74.55M	-97.92M	-50.94M
Investing Cash Flow	75.30M	62.06M	166.41M	207.09M	127.34M	-8.31M
Financing Cash Flow	43.85M	47.47M	-78.03M	-117.91M	-76.88M	25.28M

Omni Bridgeway Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OBL, the sentiment is Neutral. The current price of 1.36 is below the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.51, and above the 200-day MA of 1.29, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.05 is Neutral, neither overbought nor oversold. The STOCH value of 63.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:OBL.

Omni Bridgeway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
PPM	65 Neutral	AU$810.09M	8.14	11.75%	5.48%	3.70%	-10.93%
MME	54 Neutral	AU$124.01M	7.17	-13.74%	―	-14.61%	-325.81%
PNC	46 Neutral	AU$81.09M	―	-16.83%	―	-2.45%	-639.57%
PLT	45 Neutral	AU$160.76M	6.56	71.90%	―	35.12%	8.03%
OBL	43 Neutral	$392.27M	―	-26.72%	―	456.81%	-97.24%
2RC		€536.16M	8.14	13.05%	4.52%	―	―

Omni Bridgeway Corporate Events

Omni Bridgeway to Release Shares from Voluntary Escrow

Omni Bridgeway Limited has announced the upcoming release of 38,566 fully paid ordinary shares from voluntary escrow, scheduled for 12 July 2025. This release is associated with the vested performance rights issued the previous year, and it reflects the company’s ongoing strategic financial maneuvers, potentially impacting its market operations and shareholder interests.

Samuel Terry Asset Management Increases Stake in Omni Bridgeway

Omni Bridgeway Limited, a company listed on the Australian Securities Exchange (ASX: OBL), has seen a change in the substantial holding of its shares by Samuel Terry Asset Management Pty Ltd. The asset management firm, acting as a trustee for the Samuel Terry Absolute Return Fund, increased its voting power from 5.80% to 7.1% as of June 20, 2025. This change reflects a series of on-market purchases of ordinary shares, indicating a growing interest and investment in Omni Bridgeway by the fund.

Omni Bridgeway Responds to Draft US Budget Bill’s Potential Impact on Legal Finance

Omni Bridgeway Limited has addressed the potential implications of a draft US Budget Bill, which proposes a statutory tax on legal finance transactions. Although the bill is still in the legislative process and the tax provision is considered unlikely to be enacted, Omni Bridgeway is actively engaging with relevant associations to influence the outcome. The company believes that even if the tax is implemented, it will not significantly impact its operations due to existing contractual protections and its strategic focus on high-return segments. The announcement also highlights the importance of legal finance in promoting access to justice and economic development, aligning with legislative studies in the EU and other regions.

Omni Bridgeway Director Increases Shareholding

Omni Bridgeway Limited announced a change in the director’s interest, with Michael Green acquiring additional ordinary fully paid shares through on-market transactions. This acquisition increases his total holdings, reflecting a significant personal investment and potential confidence in the company’s future performance.

Omni Bridgeway Achieves Record Financial Performance and Strategic Growth

Omni Bridgeway Limited reported strong financial performance for the quarter ending March 31, 2025, with record proceeds and significant cash generation. The company completed a major transaction with Ares Management, resulting in substantial proceeds and the repayment of corporate debt. The firm’s investment portfolio developments are positive, with a strong pipeline and new commitments anticipated to enhance future revenue. The global financial market volatility underscores the attractiveness of Omni Bridgeway’s unique asset profile, positioning it well for future investment opportunities.

Omni Bridgeway Completes Fund 9 Transaction with Ares Management

Omni Bridgeway Limited has completed the Fund 9 transaction with Ares Management Corporation, receiving a total of A$320 million. This transaction supports Omni Bridgeway’s strategic objectives by validating its fair value framework, realizing embedded value, and affirming its position as a leading fund manager for legal assets. The proceeds have been used to deleverage the balance sheet, enhance liquidity, and transition to a capital-light funds-management model, which simplifies statutory reporting and aligns with fund management standards.

Omni Bridgeway Announces Cessation of Performance Rights

Omni Bridgeway Limited announced the cessation of 617,536 performance rights due to unmet conditions, effective March 31, 2025. This development may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and strategic focus.

Omni Bridgeway Issues New Performance Rights to Boost Employee Incentives

Omni Bridgeway Limited announced the issuance of 85,350 performance rights expiring on March 31, 2040, as part of an employee incentive scheme. This move is expected to enhance employee engagement and align their interests with the company’s long-term goals, potentially impacting its operational efficiency and market positioning positively.