Cash Converters International (ASX: CCV) reported a robust 8% increase in revenue to A$206.7 million and an 18% jump in operating EBITDA to A$34.2 million for **H1 FY2026, **, while operating NPAT grew 9% to A$13.2 million.
Statutory NPAT was A$10.1 million, down 17% due to one-off M&A and RTG program costs that included A$1.837 million in M&A costs and A$1.330 million for the RTG program.
The results were driven by its strategic transition to the Cashies Loan product and aggressive franchise store acquisitions in Australia and the UK, alongside a maintained dividend.
The core gross loan book stands at A$173.9 million.
Strategic Lending Shift to Cashies Loan
The run-down legacy loan books decreased by 35% to A$56.7 million, aligning with the company's strategic pillar to scale a simplified, higher-quality Cashies Loan book.
The Cashies Loan book itself grew significantly to A$58.2 million from A$23.1 million at 30 June 2025.
This transition to higher-quality lending is also reflected in improved net loss rates, which are now 13.7% compared to 15.5% in the prior corresponding period.
The company continues to leverage machine learning credit decisioning and integrated digital/in-store platforms to support this shift.
Aggressive Franchise Store Acquisitions
36 Australian franchise stores were acquired in H1 FY2026, including six Morris Group stores, one Perth City store, and 29 CCIG Group stores.
The company has a FY26 target of 40+ AU/UK acquisitions.
Post-period, Cash Converters acquired five UK stores in January 2026, comprising four Loljack Group stores and one Orpington store, at an estimated cost of A$3.025 million.
This expansion brings the total store network to 656 across 15 countries.
Store M&A is actively funding near-term earnings, with 120 franchise acquisitions since FY2021.
The recent 29 CCIG franchise store acquisition in December 2025 for A$37.1 million was financed through existing cash reserves and proceeds from an equity raise.
Strong Funding and Dividend Maintained
Cash and cash equivalents stood at A$43.5 million, with total undrawn facilities of approximately A$74.3 million.
This includes an undrawn securitisation facility of approximately A$71.5 million and a revolving facility of approximately A$2.8 million.
The securitisation facility also has a permanent extension to a minimum draw of A$90 million.
A fully franked interim dividend of 1.0 cent per share was maintained for H1 FY2026, and the dividend reinvestment plan (DRP) was also reinstated.
The balance sheet supports this growth, with secured UK funding and undrawn securitisation capacity enhancing financial resilience.
Net assets were A$253.4 million and goodwill and intangible assets were A$81.0 million.
Outlook and Risks
Cash Converters is demonstrating significant strategic progress with revenue and EBITDA growth driven by its lending transition and aggressive store acquisitions.
While near-term statutory profit is impacted by one-off costs, the underlying operational improvements and strong liquidity position support its expansion strategy.
Key watch items include the successful scaling of the Cashies Loan, continued store integration, and management execution.
