Trim Capital August 2026 Update: Secured lending the new growth driver

Trim Capital has released a new equity research report on Harmoney titled "Secured lending the new growth driver". The update reviews Harmoney's recent full-year financial results and outlines growth expectations for the coming years.

Here are the key takeaways from the report:

• FY26 Outperformance: Harmoney delivered a FY26 Cash NPAT of $13.5m, which exceeded the company guidance of $13.0m. Key operating metrics including net interest margins (10.2%), cost-to-income (17.8%), credit losses (3.9%), and cash ROE (33%) also surpassed management guidance.

• FY27 Guidance: Trim Capital notes Harmoney's FY27 cash NPAT guidance of $16m+, which implies an 18.5% growth from FY26. The report suggests this guidance could be conservative, as growth in secured lending is set to accelerate. It also notes the extension of the on-market share buyback program.

• Valuation Upside: Trim Capital lowered its valuation to $2.06 due to tempered loan growth expectations and an increased risk-free rate assumption. However, the report highlights that this valuation still presents a 157% upside from the current share price.

• Business Model Strengths: The investment thesis emphasizes Harmoney's direct-to-consumer platform, which creates recurring revenue streams with near-zero acquisition costs for returning customers. Furthermore, personalized risk-adjusted interest rates drive peer-leading margins and yields.

• Future Catalysts: The report identifies the ongoing deployment of AI to improve underwriting speed and personalization as a key catalyst. Additionally, Trim Capital highlights the success of embedded finance distribution partnerships as a driver for future loan book growth.

Please refer to the full attached document, "Trim Capital HMY 20260824 Secured lending the new growth driver.pdf", for the complete analysis, financial models, and forecasts.