scroll

Bravura Solutions Ltd (ASX: BVS) and Service Stream (ASX: SSM)

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 14/08/2026

Bravura Solutions Ltd (ASX: BVS) and Service Stream (ASX: SSM)

Hi Market Matters Team Can I have your current view on BVS - Bravura & SSM -Service Stream. I've held both at losses for a while- but have reached break even. Do you see further upside -especially with BVS -as they have already reported well. I don't want to cut them too early. regards Debbie

Answer

Hi Debbie,

Before we look at the two stocks, this is a scenario most investors have experienced: letting losses run, only to sell too quickly once a position recovers to breakeven. The better approach is to continually reassess the business and its outlook, rather than anchor to our entry price — although, as we all know, emotion rarely does us any favours when investing!

Bravura Solutions Ltd (BVS) – this technology company which provides software and administration platforms to wealth managers, pension/superannuation funds and financial institutions has surged ~65% over the last 3-months as the company upgraded earnings:

In July they delivered a guidance upgrade: BVS upgraded FY26 cash EBITDA guidance, providing the first leg of the re-rating, breaking the stock out of its well established $1.99–2.10 trading range.
This week’s FY26 results: The full-year result confirmed the improving earnings trajectory and triggered a significant second leg higher, with BVS rallying close to +30% in two sessions after beating on both revenue and EBITDA, with the later even better than Julys upgrade.

BVS is starting to deliver operationally, with revenue increasing +13% from $250m in FY24 to $284m in FY26, while operating expenses fell 12% to $211m. This combination of growth and aggressive cost reduction expanded the revenue-cost gap from just $12m to $73m, demonstrating significant operating leverage.

We like BVS around $3.50 after it launched a A$50m share buyback, while guiding to FY27 revenue of A$280–300m (65–70% pre-contracted) and cash EBITDA of A$84–94m, supported by cost savings and higher services revenue.

Service Stream (SSM) – rallied more than 35% from February to June on strong contract wins – the stock has since eased ~8%. The pullback looks and feels like some healthy, mild profit taking in our opinion. Importantly, there has been no material negative company-specific news, while the RiE Group acquisition completed as planned.

With results dropping next week, some investors may be reducing exposure given the revenue miss in February which knocked the stock ~20%.

We are bullish towards SSM targeting a test of $3 in 2026, ~15% higher.

chart

Bravura Solutions Ltd (BVS) Revenue v Operating Expenses

LAST UPDATED 14/08/2026 13:24

Latest Reports

Afternoon report 14/08/2026

The Match Out: ASX ends the week lower as Materials weigh, tech rallies to 6-month high

A tough session on the ASX today, capping off a softer week for Aussie equities. The market struggled from the opening bell, though it could have been worse as the index climbed +25pts from the session lows, with the bourse now lower in five of the past six sessions.

Morning report 14/08/2026

ETF Friday: Are equities benefiting from the recent Federal Budget?

The ASX 200 ended a choppy session on Thursday down 0.2% with reporting again weighing on the index, although losses were fairly muted considering only 30% of the main board closed higher, and Commonwealth Bank (CBA) fell by over 2%. Yesterday saw the banks put in a very mixed performance, with ANZ adding ~16 points to the index while CBA more than offset the good work, taking over 20 points off the ASX 200. It was a refreshing change to see ANZ rally post its result, with the bank less exposed than CBA and Westpac to the current housing slowdown.