Cuscal Ltd reported a 20% year-over-year increase in underlying net profit after tax to AUD 46.2 million for the six months to December 31, 2026, driven by higher transaction volumes and cost efficiencies from recent acquisitions. The payments processor’s net operating income rose 20% to AUD 347.7 million, with organic growth of 6% excluding the impact of the Indue and Paymark purchases completed in December and May, respectively.
Transaction volumes totaled 4.8 billion, up 12% from the prior period, while organic volume growth reached 6%. Underlying return on equity improved by 120 basis points to 11.7%, supported by a capital ratio of 19.1% at year-end, within Cuscal’s target range of 18% to 19%. The company maintained its S&P AA- credit rating and declared a full-year dividend of AUD 0.115 per share, including a final payment of AUD 0.07 per share.
Chief Financial Officer Jennifer Brice highlighted disciplined expense management, with organic operating expenses rising approximately 4% despite expanded operations. Research and development tax incentives contributed AUD 2.9 million to depreciation and amortization benefits during the period.
Integration of Indue, acquired seven months prior, delivered post-tax synergies of AUD 2.1 million in FY 2026, with annualized synergies projected to reach AUD 3.5 million. Cuscal targets annual run-rate post-tax cost synergies of AUD 15 million to AUD 20 million from the acquisition by FY 2029. The smaller Paymark acquisition, owned for just over a month, is expected to contribute AUD 5.4 million to FY 2027 net profit.
Management guided for mid-20% growth in both transaction volumes and underlying net profit after tax for FY 2027, with organic growth expected in the low double digits. Operational capital expenditure is budgeted at AUD 30 million annually, while a multi-year upgrade to Paymark’s switch platform is estimated at AUD 21 million.
Cuscal’s shares rose 6.32% to AUD 5.55 following the results, narrowing the gap to its 52-week high of AUD 5.79.
