Bravura Solutions Limited

Bravura reported FY2026 revenue of $283.6 million, up 10% and organically up 9.6% versus FY2025. Cash EBITDA was $77.1 million, up 76%, with a 27.3% margin; management said margins improved to about 30% in the second half. Recurring revenue was $165 million, or 58% of sales, and grew organically 6.9%; net closing cash was $50.3 million. For FY2027, Bravura guided to revenue of $280 million to $300 million assuming an AUD/GBP rate of $1.9 and cash EBITDA of $84 million to $94 million, with the midpoint implying about a 30% margin.

Colin Greenhill described FY2026 as a “very strong year,” emphasizing customer-led growth, contract renewals, migration projects, and closer alignment to customer road maps. He said the business has been reorganized around core product solutions, with accountability pushed closer to the market and reward structures aligned to growth and profitability. His tone was upbeat and confident, pointing to a strong pipeline into 2027 and saying the company is “very encouraged” by the momentum.

The CFO commentary focused on operating leverage, cost discipline, and cash generation. Management said administration costs were reduced by 10%, project revenue achieved grew 18% year on year, and the business generated net closing cash of $50.3 million. On capital allocation, they highlighted total FY2026 dividends of $0.2523 per share, including $0.1023 paid in March and $0.15 to be paid in September, plus a new combined $100 million debt facility and a $50 million on-market buyback authorization.

Analysts pressed on the FY2027 revenue range, the durability of license fees, and whether cost efficiency can continue. Management said most renewals are on 2- to 5-year terms, that the third previously flagged attrition event has now extended for some time, and that the work done in FY2026 sets up FY2027 through ongoing projects and ongoing fees. On the UK, Greenhill said industry pressure toward insourcing rather than outsourcing could be positive for Bravura as a software provider, while also noting the situation should be watched as it develops.