In its FY26 results presentation delivered on 21 August 2026, Cash Converters International outlined a year defined by record revenue and the completion of a multi-year pivot away from legacy payday and vehicle lending. The company reported revenue of $429.2m, up 11%, and Operating EBITDA of $67.0m, also up 11%, for the financial year ended 30 June 2026.
Management framed the result as a deliberate strategic reset, with a simplified Cashies Loan and an expanding global retail store network replacing the run-down of older lending books.
The one soft spot was earnings timing. Operating NPAT eased 8% to $23.2m, reflecting a near-term lag as legacy loan portfolios ran down faster than the new Cashies Loan scaled up.
Cash Converters maintained its fully franked 2.0 cents per share dividend for the sixth consecutive year, equating to a 6.7% dividend yield. The presentation positioned FY26 as a strategic reset, FY27 as a period of investment and scale, and FY28 onwards as the phase where earnings growth is targeted to be realised.
FY26 financial results: record revenue, strategic transition in earnings
The FY26 figures show a business generating record top-line revenue while absorbing a planned decline in legacy lending earnings. Operating EBITDA rose 11% to $67.0m, supported by a standout contribution from Australian stores, where segment EBITDA jumped 50% to $46.8m.
The dip in Operating NPAT stems from the timing gap between the accelerated run-down of legacy loan books and the later scaling of the Cashies Loan, rather than a structural weakness in the underlying business. Management noted earnings are expected to rebuild in FY27 as the new loan book matures.
Period comparisons reflect a restatement of the FY25 Operating EBITDA figure. Previously reported as $74.5m, it was restated to $60.3m to reflect financial services interest expense on the securitisation facility now being included in net financial services revenue. On this consistent basis, EBITDA grew 11% year-on-year.
| Metric | FY26 | Change | FY25 |
|---|---|---|---|
| Revenue | $429.2m | ▲ 11% | $385.3m |
| Operating EBITDA | $67.0m | ▲ 11% | $60.3m |
| Operating NPAT | $23.2m | ▼ 8% | $25.1m |
| New Cashies Loan Book | $114.1m | ▲ 394% | $23.1m |
| Cash & Equivalents | $37.2m | ▼ 49% | $73.2m |
| Dividend | 2.0cps fully franked | 6th year | — |
The FY26 snapshot, as at 30 June 2026, was as follows:
- Share price: 30c
- Market cap: ~$213.5m
- Dividend yield: 6.7%
- Undrawn facilities: $60.5m ($59.3m securitisation facility plus $1.2m revolving facility)
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Understanding the lending pivot: from payday to the Cashies Loan
Over recent years, Cash Converters has exited its legacy lending products, including Small Amount Credit Contracts (SACC, commonly known as “payday” loans), Medium Amount Credit Contracts (MACC), and vehicle finance. In their place sits a single, simplified product: the Cashies Loan, a lower-risk, longer-term personal loan of up to $10k with rates from 19.95% p.a.
For investors, the significance lies in loan quality. A simpler, higher-quality book is associated with lower credit losses and more predictable earnings over time. The near-term NPAT dip represents the deliberate cost of managing that transition.
The proof points are visible in the credit metrics. The Net Loss Rate fell to 11.1% in FY26, down from 16.0% in FY25, while the core gross loan book now represents 69% of the total, up from 25% a year earlier, with management aspiring toward 100%.
The company also highlighted a data advantage, citing proprietary machine-learning credit decisioning trained on millions of bank statements. Its typical customer sits in the sub/near-prime segment with an average credit score of around 550.
Management set out why the new loan book is considered higher quality:
- Lower credit losses, with the Net Loss Rate down to 11.1%
- Longer-term, repeat-use customers supported by redraw and credit limit increases
- Lower expected funding costs as the book matures
- Earnings realised progressively as the portfolio scales
Retail and store network: luxury focus and global scale
The retail arm serves as the earnings engine offsetting the lending transition. Cash Converters operates as a circular retailer, repurposing quality pre-owned goods sourced directly from customers, and has increasingly tilted toward a luxury focus spanning watches, jewellery, high-end electronics and handbags, including a new luxury store in Perth city.
Store performance delivered meaningful operating leverage across FY26. Australian store operations lifted revenue 37% to $220.6m, while the UK segment grew revenue 32% to $114.5m.
The global footprint spans 647 stores across 15 countries, comprising 200 corporate stores (124 in Australia, 66 in the UK and 10 in New Zealand) and 164 franchise stores across core markets that provide an acquisition pipeline.
| Metric | Australia | United Kingdom |
|---|---|---|
| Same-store sales growth | 13% | 6% |
| Same-store EBITDA contribution | $600k | $440k |
| Inventory turnover | 2.4x | 2.6x |
| Online sales % | 27% | 27% |
Digital and luxury momentum was a clear theme, with UK online sales rising from 18% to 27% of the total over the year.
The growth strategy: three engines of earnings
Management mapped its growth framework to three engines aligned with the company’s strategic horizon:
- Scale the Cashies Loan — building a large, high-quality loan book (FY26: strategic reset)
- Optimise stores — same-store sales and EBITDA growth, luxury mix and digital channel expansion (FY27: invest and scale)
- Expand the store network — accretive franchise acquisitions and greenfields (FY28+: earnings growth realised)
For FY27, the company detailed a target of 20+ franchise acquisitions, drawn from a pipeline of 164 franchise stores, alongside 10 greenfield openings annually across Australia and the UK.
The presentation outlined the acquisition economics behind this expansion: EBITDA multiples of approximately 4x to 5x, IRRs of greater than 15%, and greenfield payback of under 3 years in Australia.
Investment case and outlook
Using its own “Investment Highlights” framing, Cash Converters set out an investment case built around a near-complete lending pivot, higher-quality earnings, accretive expansion, a data and AI advantage, and continued cash returns.
Balance sheet strength featured prominently, with net assets up 11% to $253.8m. Cash fell to $37.2m, reflecting $51.4m of M&A outlays on franchise store acquisitions. The company also noted a planned securitisation facility refinancing as part of balance sheet optimisation.
Looking ahead, earnings are expected to rebuild in FY27 as the Cashies Loan book matures and acquired stores contribute for a full year.
The investment case, as presented, can be summarised as follows:
- Legacy “payday” lending ceased, with the new Cashies Loan book growing strongly
- Comparable store growth of 13% in Australia and 6% in the UK
- A proven, accretive franchise acquisition model targeting IRRs above 15%
- Six consecutive years of fully franked 2.0cps dividends
With the strategic reset delivered in FY26 and the investment phase set for FY27, management positioned FY28 onwards as the period where the transformation is expected to translate into earnings growth.
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