Omni Bridgeway (AU:OBL)
ASX:OBL
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Omni Bridgeway
(Sydney:OBL)
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Rating:63Neutral
Price Target:
AU$1.50
▲(4.17% Upside)
Action:ReiteratedDate:02/26/26
The score is driven by strong valuation (very low P/E) and a constructive earnings call (profitability, fee growth, cost control, and supportive guidance). These positives are tempered by mixed underlying financial statement quality—especially revenue volatility and uneven cash flow—while technicals are moderately supportive rather than strongly bullish.
Positive Factors
Strong investment performance
High MOIC (2.6x) and a >100% fair-value conversion across 45 completions shows durable underwriting strength and disciplined case selection. This track record supports repeatable realized recoveries, improves cash generation over cycles and underpins long-term returns to investors.
Negative Factors
Revenue volatility
A ~90% revenue plunge highlights the lumpy, binary nature of litigation recoveries. Such volatility limits predictability of earnings and cashflows, complicates budgeting and investor returns, and makes multi‑period planning and dividend/distribution policies harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong investment performance
High MOIC (2.6x) and a >100% fair-value conversion across 45 completions shows durable underwriting strength and disciplined case selection. This track record supports repeatable realized recoveries, improves cash generation over cycles and underpins long-term returns to investors.
Read all positive factors
Omni Bridgeway (OBL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$519.91M
Dividend YieldN/A
Average Volume (3M)561.29K
Price to Earnings (P/E)1.3
Beta (1Y)-0.02
Revenue Growth-22.61%
EPS GrowthN/A
CountryAU
Employees202
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.29
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)N/A
Revenue Forecast (FY)N/A
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,...
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
1.55
Positive
1.53
Positive
1.54
Positive
Market Momentum
0.03
Negative
66.72
Neutral
83.73
Negative
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 1.56, below the 50-day MA of 1.55, and below the 200-day MA of 1.54, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.72 is Neutral, neither overbought nor oversold. The STOCH value of 83.73 is Negative, 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
1.80
0.50
38.61%
AU:CCP
Credit Corp Group Limited
10.61
-1.12
-9.57%
AU:PNC
Pioneer Credit Ltd
0.61
0.20
51.25%
Omni Bridgeway Corporate Events
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...
Omni Bridgeway Issues 1.89 Million New Shares on Conversion of Unquoted Securities
Jan 8, 2026
Omni Bridgeway Limited has notified the market of the issue of 1,890,365 new ordinary fully paid shares following the conversion or exercise of previously unquoted equity securities. The additional shares, dated 31 December 2025, modestly expand t...
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.