Omni Bridgeway Limited

For the first half ended 31 December 2025, Omni Bridgeway reported total statutory income of $179.5 million, investment proceeds of $223.7 million, and net profit after tax of $84.5 million, versus $18.7 million in 1H FY25. Earnings per share were $0.29, return on equity was 23.9% on an annualized basis, and book value per share rose 7% to $3.20. Fee income was $18 million, up 31% year on year, and cash OpEx was $34.4 million, down from $39.6 million a year ago and below the FY26 budget of $80 million. Looking ahead, management said they remain on track for fee income of $35 million in FY26, expect OpEx to end below $80 million, and on a 12-month view are targeting fee income of $38 million and platform expenses of $75 million. They also said OBL-only cash flow is expected to be positive for the year ahead, with P50 completion cash flow potentially around $80 million and associated deployments potentially just over $20 million.

Raymond van Hulst said the business is executing well across its “flywheel”: strong investment returns are supporting co-investment, fund growth, and higher fee income, while scale should improve efficiency over time. He emphasized disciplined underwriting, diversification, and the strength of the pipeline, including positive regulatory developments and what he sees as an emerging AI-driven opportunity in the legal industry. His tone was confident but pragmatic, repeatedly noting that legal asset timing is hard to forecast and that some processes, including fundraising and completions, depend on outside parties.

David Breeney highlighted that statutory income reached $179.5 million and NPAT was $84.5 million, with fair value gains of $95.5 million driving the result. He pointed to the improved cash profile: OBL-only generated $22.1 million during the period, cash OpEx was $34.4 million, and cash and receivables were $149 million at period end, up $3 million since June. He said fee income is tracking toward $35 million for FY26 and that the company expects to remain below the $80 million OpEx budget, while also targeting a 70% cost coverage ratio by FY28.

Analysts focused on the timing of the capital raise for Funds 4 and 5 Series 2, the outlook for capital returns, deployment trends, and how the company gets to 70% cost coverage. Management said the delay in closing was due to external diligence and transaction timing, not a loss of investor interest, and they are now comfortable it should close within this financial year. On capital management, Raymond said the company is moving closer to its 12- to 24-month liquidity trigger and would consider a distribution once it moves above that range, while noting he wants the Westgem liability cleared first. On cost coverage, management said the mix of fees from deployed capital, committed capital, transaction fees, and monitoring fees should drive the step-up to 70%, and they also walked through how AI may improve underwriting and operational efficiency.