Appendix 4D and Half Year Report 2025

• Revenue up 7% to $159.1 million
• NPATA up 12% to $38.1 million
• Interim dividend of 19.5 cents per share

Smartgroup Corporation Ltd has reported strong financial results for the first half of 2025, with revenue increasing 7% to $159.1 million and Net Profit After Tax (Adjusted) (NPATA) growing 12% to $38.1 million compared to the prior corresponding period. The positive momentum was driven by higher novated leasing volumes and new client wins in the company's salary packaging business. Smartgroup continues to invest for growth, with total operating expenses increasing 4% compared to the prior corresponding period. This was largely due to enhanced marketing and lead-generation activities, as well as strategic project delivery. The company's EBITDA margin for the six months to 30 June 2025 was 40%. Smartgroup's salary packaging customer base grew by 20% year-on-year to 484,000, while novated leases under management increased by 24% to 80,000. The company also expanded its funded lease pilot program, which is resonating with clients and strengthening existing relationships. Smartgroup reported strong cash flow, with net operating cash flow from operations at 138% of NPATA. The company's net debt position at 30 June 2025 was $41.6 million, with leverage (net corporate debt / last 12 months EBITDA) at 0.3x. The Board has declared an interim dividend of 19.5 cents per share, to be paid on 23 September 2025.

Smartgroup expects capital expenditure for 2025 to be between $11.0 million and $13.0 million.