Pacific Current Group Ltd (ASX:PAC) (Q1 2026) Earnings Call Highlights: Navigating Challenges …

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Tue, February 24, 2026 at 2:02 PM GMT+9 4 min read

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**Underlying Net Profit After Tax (NAP):** AUD $6.7 million, down from $15.3 million in the previous corresponding period.

**Underlying Earnings Per Share:** Declined to $0.22 per share from $0.29 in the previous corresponding period.

**Statutory Profit:** Declined by $11.7 million due to fair value adjustments to asset valuations.

**Interim Dividend:** $0.20 per share, fully franked, an increase of 33% from the previous corresponding period.

**Corporate Cost Reduction:** 31% reduction compared to the previous corresponding period.

**Fair Value Estimate of Net Asset Value:** Increased to $16.34 per share at 31 December 2025, up from $14.32 per share on 31 December 2024.

**Debt Facility Repayment:** Fully repaid senior debt facility of $42.1 million USD in October 2025.

**On-Market Share Buyback:** Commenced in October 2025 for up to 2 million shares; repurchased just under 200,000 shares for around AUD $2 million by 31 December 2025.

**Net Asset Value (NAV):** Statutory NAV was $13.92 per share, while Fair Value NAV was $16.34 per share as of 31 December 2025.

**Revenue Composition:** Management fee revenues declined; financial asset revenues increased.

**Corporate Net Assets:** Increased to $164 million from $144 million at 30 June.

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Release Date: February 23, 2026

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

Positive Points

Pacific Current Group Ltd (ASX:PAC) declared an interim dividend of $0.20 per share, fully franked, marking a 33% increase from the previous corresponding period.

The company implemented cost-saving initiatives resulting in a 31% reduction in corporate costs compared to the previous period.

Fair value net asset value per share increased by over 14% from the previous year, reflecting strong capital management and asset sales.

The company fully repaid its senior debt facility, eliminating interest expenses for the second half of the financial year.

Pacific Current Group Ltd (ASX:PAC) has initiated an on-market share buyback, enhancing capital efficiency and shareholder value.

Negative Points

Underlying net profit after tax declined to AUD $6.7 million from $15.3 million in the previous corresponding period.

Statutory profit declined by $11.7 million due to fair value adjustments to asset valuations.

Management fee revenues declined due to realizations of certain investments and partial exits.

Interest income was lower due to reduced cash balances following the substantial off-market buyback and debt repayment.

Overall contributions from boutiques and investments were lower, consistent with a portfolio that currently has a higher weighting to cash.

 






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Q & A Highlights

Q: Can you provide an overview of Pacific Current Group’s financial performance for the first half of 2026? A: Michael Clarke, Managing Director, reported an underlying net profit after tax of AUD $6.7 million, down from $15.3 million in the previous period. This decline was due to lower distributions and management fee income, partially offset by cost management initiatives. Underlying earnings per share decreased to $0.22 from $0.29, and a fully franked interim dividend of $0.20 per share was declared, marking a 33% increase from the previous period.

Q: What were the key factors affecting the company’s net profit and earnings per share? A: Ron Patel, Acting Chief Financial Officer, explained that the decline in net profit was driven by lower distributions, management fees, and interest income. However, these were partly offset by reduced interest expenses following debt repayment and a 31% reduction in corporate costs. The decline in earnings per share was mitigated by a reduced share count due to the off-market buyback.

Q: How has Pacific Current Group managed its capital and balance sheet during this period? A: The company fully repaid its senior debt facility, eliminating interest expenses for the second half of 2026. It also conducted an on-market share buyback and exited its stake in Janus Henderson Group, generating significant proceeds. The fair value estimate of net asset value increased to $16.34 per share, reflecting asset sales and capital management initiatives.

Q: Can you elaborate on the company’s strategic initiatives for growth and shareholder value? A: Michael Clarke highlighted five key initiatives: accelerating growth through existing and new investments, unlocking shareholder value through targeted capital initiatives, controlling operating costs, strengthening the balance sheet, and enhancing organizational efficiency. These initiatives aim to drive scalable and sustainable growth while optimizing capital structure.

Q: What are the expectations for the remainder of the financial year? A: The management expects to maintain strong momentum by executing a disciplined plan focused on growth opportunities, capital initiatives, cost management, balance sheet optimization, and organizational efficiency. The goal is to achieve the best possible outcomes for shareholders.

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

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