Fund Manager Summary on EML Payments Ltd (ASX:EML)
In March 2026, Forager Funds commented that EML Payments Ltd (ASX:EML) remained in transition, with softer first-half results, lower customer activity and interest income, tighter full-year guidance, and ongoing one-off expenses, while the business continued migrating to a new global platform and rebuilding sales capability. Across the full set of fund manager commentary, the consensus view has shifted from skepticism about legacy problems toward guarded optimism that the turnaround is real but still incomplete. More recent commentary places greater weight on FY26 as a reset year, with weaker revenue, softer interest income, and inconsistent organic growth showing that execution risk remains material, especially given long sales cycles, regulatory complexity, and the need to convert a rebuilt pipeline into sustained revenue. At the same time, managers have highlighted important positives: non-core assets and troubled divisions have been removed, litigation and class action overhangs have been resolved, leadership has been refreshed, cost discipline has improved, the Pismo and Arlo platform work should simplify operations and lower technology costs, and the commercial pipeline has been rebuilt meaningfully. Several fund managers also see strategic optionality from potential private equity or trade interest if the company proves it can stabilise growth and improve profitability. Overall, the view is that EML still faces near-term operational and market pressure, but if management executes on platform consolidation, sales rebuilding, and margin recovery, the shares could re-rate from a valuation that remains below peers.
Commentary
There are 43 insights from 10 fund managers regarding their investment in EML Payments Ltd (ASX:EML) available on Thesis Tracker.
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The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in EML Payments Ltd (ASX:EML)?
Fund managers including Endeavor Asset Management, DMX Asset Management, Salter Brothers, Monash Investors, Forager Funds, Jencay Capital, Oracle Advisory Group, QVG Capital, Wilson Asset Management and Tamim Funds Management have invested in EML Payments Ltd (ASX:EML).
Why do fund managers invest in EML Payments Ltd?
Fund managers have invested in EML Payments because they see a turnaround in a global payments business after a period of regulatory and operational issues. Commentaries point to a simpler core business, divestment of non-core assets, stronger management alignment, and investment in a new platform and sales pipeline. They also note valuation support, with the shares trading below broader payments-sector multiples, creating a higher-risk, potentially higher-reward recovery opportunity.
What happened to EML Payments Ltd (ASX:EML)?
Fund managers are optimistic about EML Payments Ltd due to new leadership, a strategic focus on organic growth, and the exit of non-core operations. They believe the company is on a path to substantial profitability improvements, driven by a flat cost base while increasing revenue. Despite recent challenges, including some disappointing financial results, the management team is rebuilding its sales operations and has begun to establish a solid customer pipeline, suggesting potential for upside revenue surprises in the coming years. Overall, there is confidence that EML Payments is positioned for recovery and growth.
What is the short interest in EML Payments Ltd (ASX:EML)?
The short interest in EML Payments Ltd (ASX:EML) is 2.82% which makes it the 86th most shorted stock on the ASX. Of the 387.7M shares that EML Payments Ltd has on issue, 11.0M have been sold short.
What does EML Payments Ltd (ASX:EML) do?
EML Payments Ltd. engages in the provision of payment solutions and financial services. It operates through the following segments: Gift & Incentive (G&I), General Purpose Reloadable (GPR), Digital Payments (DP), and Group. The Gift & Incentive (G&I) products provides single load gift cards for shopping malls and incentive programs across the world. The General Purpose Reloadable segment includes reloadable cards to a variety of industries including, but not limited to Government, Salary Packaging, Gaming and Digital Banking. The Digital Payments segment focuses on the payment options for consumers. Its operations include funds disbursement, social and welfare payments, loyalty and rewards programs, loan disbursements, corporate expenses, procurement, and salary packaging. The company was founded in 2001 and is headquartered in Brisbane, Australia.