Harmoney 1Q27 slides: loan book grows 9%, intermediary channel launches

Harmoney, a digital lender based in Australia, reported its first-quarter results for FY2027 on October 22, 2026. The company reaffirmed its guidance for full-year cash net profit after tax, projecting a minimum of AUD 16 million. During the quarter, Harmoney's group loan book grew by 9% to AUD 912 million, despite softer market conditions in Australia. The company's shares closed at $0.675, near the lower end of its 52-week trading range of $0.63 to $0.975, indicating cautious investor sentiment.

Key highlights from the quarter included a 14% increase in the Australian loan book to AUD 573 million, accounting for 63% of the group total. The New Zealand loan book grew 11% to NZD 418 million. Net interest margin remained steady at 10.3%, while credit losses stayed consistent at 3.8% of the loan book. Credit quality improved, with 90-plus day arrears declining to 0.64% from 0.77% in the previous quarter, a 13 basis point improvement attributed to stricter underwriting standards.

Harmoney's cost-to-income ratio improved by 100 basis points to 18%, reflecting increased operational leverage from its automated Stellare platform. The company aims to exceed AUD 1 billion in loan book by year-end, driven by its Stellare 2.0 platform and expanding intermediary partnerships. In Australia, Harmoney launched its intermediary channel in September 2026, originating AUD 7 million in loans within the first two months—demonstrating rapid early traction.

Two partners, LoanOptions.ai and EDRIVA, went live, with more intermediaries expected in the second quarter of FY27.

CEO David Stevens emphasized the competitive advantage of Harmoney's platform, stating that cleared funds can occur within 25 minutes from the first client interaction. The company's flywheel business model creates compounding unit economics through customer acquisition, experience delivery, repeat lending, and data intelligence.

Harmoney processes over 10,000 new applicants monthly, building a first-party data set that feeds its AI credit models. Management highlighted key initiatives for FY27, including deploying Stellare 2.0 with next-generation AI underwriting, expanding embedded finance partnerships, and developing multi-product customer relationships.

The company's current capitalization supports growth to a AUD 1.9 billion loan book, representing 113% of the current base.