Bravura Solutions Ltd (ASX: BVS) shares have taken off on Friday after the financial software company delivered a better-than-expected FY26 earnings update.
At the time of writing, the Bravura share price is up 13.17% to $2.32. By comparison, the S&P/ASX 300 Index (ASX: XKO) is currently sitting at 8,705 points, 0.1% higher.
The rally comes after a fairly ordinary start to the year. Bravura shares remain down around 20% in 2026, although they are still 8% higher than this time last year.
Here's what the company is now forecasting.
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Bravura lifts its earnings outlook
According to the release, Bravura now expects FY26 cash EBITDA of approximately $77 million.
This is above its previous guidance range of $69 million to $73 million and has given the market something positive to work with.
Revenue guidance has been left unchanged at $280 million to $285 million, while capital expenditure is still expected to be roughly $4 million.
Bravura put the better result down to steady demand for project work and tighter control over costs.
Management has used an average GBP/AUD exchange rate of 1.92 for the second half, compared with 1.95 in its previous guidance.
The full-year result is due on 12 August, when investors will get a closer look at how the business finished FY26.
Bravura's recovery moves forward
The earnings upgrade comes after a fairly unsettled period at Bravura.
Former Chairman Matthew Quinn retired last year following tensions with L6 Holdings, which owns more than 20% of the company.
L6 is controlled by Damien Leonard, who runs Pinetree Capital and is the son of Constellation Software founder Mark Leonard.
Damien Leonard now sits on Bravura's board as a Director.
Bravura has also spent the past few years reshaping the business after its shares fell heavily in 2022.
The company has spent the past few years cutting costs, reducing headcount, and simplifying the business. It has also placed more focus on its core wealth management software operations to improve margins and cash flow.
Is the worst behind Bravura?
The 13% jump suggests investors are warming to the progress Bravura is making.
The company is producing stronger earnings, while lower costs are helping lift margins and supporting profitability.
The share price is still well below where it traded before the 2022 collapse, so I think there is room for a further recovery if the company keeps improving.
The August result will give investors a better idea of whether Bravura can carry this momentum into the new financial year.
