Bravura FY26 slides: EBITDA surges 76% as margins expand to 27%

Bravura Solutions (ASX:BVS) reported impressive financial results for fiscal year 2026, demonstrating remarkable growth in profitability and operational efficiency. The company's cash EBITDA surged 76% to $77.1 million, outpacing revenue growth which increased by only 10% to $283.6 million. Shares responded positively to the announcement, climbing 15.4% to $3.22 following the release. The company's management attributed this success to strategic execution, customer relationship focus, and disciplined cost management.

Key performance metrics showed significant improvements in Bravura's financials. Net profit after tax rose 158.6% to $63.1 million, while net cash increased from $50.3 million to $82.8 million, driven by improved debt collection and invoicing processes. Operating costs declined from $119.2 million to $98.7 million, contributing to a more efficient cost base.

Recurring revenue, comprising 58% of total revenue, grew steadily from $165.0 million to $165.0 million. Management highlighted pricing increases as a significant driver of this growth, indicating pricing power with existing customers. The top 25 customers represent 80% of revenue, with the top 10 customers accounting for 60%, providing a concentrated but stable revenue foundation.

Bravura's cost management strategies resulted in a cash EBITDA margin of 27.3% for the year, up from 16.9% in the previous year. Operating expenses were reduced by 3.8% despite a 9.6% revenue increase, contributing to expanding profitability. The company also secured $100 million in new debt facilities with HSBC Australia and initiated a $50 million share buyback program, signaling confidence in future cash generation and shareholder value. Bravura expects continued growth in fiscal 2027, albeit at a more moderate pace.