Praemium Ltd (ASX:PPS) (Q1 2026) Earnings Call Highlights: Strong Revenue Growth and Strategic …

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Mon, February 23, 2026 at 2:00 PM GMT+9 4 min read

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**Total Revenue:** $56 million, up from $53.2 million in the first half of FY25, an increase of over 5%.

**Underlying EBITDA:** $15.2 million, up from $12.9 million in the first half of FY25.

**Underlying EBITDA Margin:** 27.1%, improved by 12% against the first half of FY25.

**Funds Under Administration (Platform 4):** $32.5 billion, increased by 8% from the first half of FY25.

**Platform Net Inflows:** Over $1 billion for the half, nearly 100% increase on flows in 1H25.

**Spectrum Inflows:** $3.6 billion, with over $1.4 billion of new business growth since launch.

**Scope Plus Growth:** Up 19% to $37.9 billion from the first half of FY25.

**Platform Revenue:** $45.7 million, up over 10% from the first half of FY25 after adjustments.

**Operating Expenses:** Flat at $40.8 million, supported by One View cost synergies of $1.6 million.

**Free Cash Flow:** Underlying positive free cash flow of $3.3 million after adjustments.

**Headcount Reduction:** Approximate 28% reduction, delivering net salary savings of around $9 million.

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Release Date: February 22, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Praemium Ltd (ASX:PPS) reported a significant improvement in underlying performance with total revenue from customers increasing by over 5% to $56 million.

The company's underlying EBITDA for the half year rose to $15.2 million, up from $12.9 million in the first half of FY25, reflecting disciplined cost management.

Platform net inflows accelerated nearly 100% on flows in 1H25 and over 200% on 2H25, demonstrating strong growth momentum.

The acquisition of Technosia Labs is expected to enhance Praemium's technology capabilities, offering opportunities for product expansion and efficiency gains.

Praemium's Spectrum product achieved over $1.4 billion of new business growth inflows since its launch, indicating strong market traction.

Negative Points

The company experienced gross outflows of $827 million related to exiting advisors, which may impact future revenue growth.

Portfolio services revenue decreased to $10.2 million from $10.5 million in the last half, reflecting a reduction in scope accounts.

Operating expenses remained broadly flat at $40.8 million, with higher employment costs due to wage inflation and STI outcomes.

The integration of Technosia Labs involves execution risks, including the challenge of merging tech teams and retaining key talent.

Free cash flow for the half year was an outflow of $4.1 million due to elevated one-off investing cash flows, impacting liquidity.

 






Story Continues  

Q & A Highlights

Q: Can you clarify the expected contribution from the OneView business in FY27 and the $9 million savings from Technosia? A: Anthony Wamsteker, CEO: The synergies from OneView have been realized, and we expect a full year of synergy in FY27. Regarding Technosia, our total tech spend was about $28 million, and with the integration, $9 million in salary costs will be reduced. This reduction will impact both CapEx and OpEx, with the allocation to be clearer by the end of the financial year.

Q: How is the Spectrum product performing, and what are your expectations for its revenue margin? A: Anthony Wamsteker, CEO: Spectrum has seen significant growth with large accounts initially, which skews the margin. Over time, as more typical-sized accounts are added, we expect the margin to align more closely with the total platform margin.

Q: What is the status of large client wins for Spectrum, and how does the sales pipeline look? A: Anthony Wamsteker, CEO: The onboarding process for large clients is progressing, though it takes time. We are focused on shortening this timeline. Our sales pipeline remains healthy, and we are optimistic about future client acquisitions.

Q: Can you provide more details on the integration of Technosia Labs and the associated execution risks? A: Anthony Wamsteker, CEO: We conducted extensive due diligence over 18 months. Technosia has significant financial services experience, and we have retained key individuals from our existing tech team. While there is some risk, we believe it is low and mitigated.

Q: Why has non-custody revenue been flat despite growth in Scope Plus? A: Anthony Wamsteker, CEO: We made strategic changes that temporarily reduced revenue but are focused on long-term client wins. Non-custody is crucial for serving high net worth clients, and we continue to lead in this segment.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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