Praemium’s stock dropped 10.14% to AUD 0.643 after the wealth management platform reported H2 2026 profit growth that failed to offset concerns over one-off write-offs and conservative guidance. The company’s underlying net profit after tax rose 22.9% to AUD 15.4 million, driven by a 5.7% increase in revenue to AUD 110.5 million and a 14.5% rise in underlying EBITDA to AUD 32.1 million.
Statutory net profit fell to AUD 6.5 million from a restated AUD 11.9 million, primarily due to a AUD 5.8 million write-off of software assets under development. Underlying operating expenses increased just 2.5%, lifting the underlying EBITDA margin by 223 basis points to 29.1%, with the second-half margin reaching 32%. Free cash flow totaled AUD 16.6 million after adjusting for one-off items, while the company declared a fully franked final dividend of AUD 0.0125 per share, bringing the full-year payout to AUD 0.025 per share.
Funds under administration grew 21.1% year-over-year to AUD 77.9 billion, with platform FUA rising 10.8% to AUD 34.0 billion. Non-custodial portfolio services FUA surged 30.5% to AUD 43.9 billion, supported by organic flows from Spectrum and a return to positive net flows in PowerWrap. Platform net flows increased 130% to AUD 1.9 billion, with active advisors contributing 85% of platform FUA growth.
Management outlined AUD 12 million in expected annualized cost savings from OneVue synergies and technology restructuring, though platform revenue margins are projected to remain near 27 basis points in FY 2027 before improving in FY 2028. Praemium also plans to launch a new superannuation offering in FY 2027, with the Technotia platform transition expected to take 12 to 18 months.
The company maintains relationships with 65% of Australia’s stockbroking firms, including multi-year renewals with two key brokers and onboarding of Bell Potter and Morgans. Industry data suggests 49% of brokers expect advice-led models to gain share, with AUD 3.5 trillion in CHESS holdings seeking recurring revenue alternatives.
