Bailador Technology Investments reported a 2.8% post-tax return for FY26 and declared a 3.5c final dividend. Private portfolio gains and a SiteMinder exit boosted results.
Alpha Score of 34 reflects weak overall profile with poor momentum, poor value, strong quality, moderate sentiment.
Bailador Technology Investments (ASX: BTI) reported a $6.9 million net profit after tax for the year to June, delivering a 2.8% post-tax portfolio return as Australian technology valuations remained under pressure.
The growth-capital investor declared a fully franked final dividend of 3.5 cents per share, equal to a 6.7% annualised cash yield based on the 12 August closing price. The payout brings total cash dividends over the past three years to $0.248 per share.
Post-tax net tangible assets stood at $1.61 per share, down from $1.64 a year earlier and $1.70 before capital movements.
Bailador deployed $7.6 million into existing portfolio businesses during FY26, including $5 million into DASH at a valuation 21% above its original entry price. It also invested $2.5 million into Rosterfy and $0.1 million into PropHero.
The private portfolio delivered a 6.9% gross return. PropHero's carrying value rose 69% during the year. Rosterfy gained 49.5%. Updoc contributed an $8.3 million uplift including cash dividends and its valuation has increased more than 120% since Bailador's initial $20 million investment in May 2024.
Bailador realised $25 million through a partial sale of SiteMinder (ASX: SDR) at an average $7.21 per share, generating a 36.9% internal rate of return and crystallising gains at 63% above the June 2025 closing price. The fund has completed 14 full and partial cash realisations above carrying value, producing a combined 3.5-times multiple on invested capital and a 23.2% IRR.
Underlying portfolio companies generated $735 million of unaudited revenue in the 12 months to June. Weighted revenue growth was 32%, and gross margins were about 63%. Recurring revenue accounted for about 82% of the total.
Across the nine businesses included in its core operating performance comparison, five were positive at the EBITDA level in FY26. All nine increased their EBITDA margins.
The company's dividend policy targets an annual distribution equal to 4% of pre-tax NTA. Available franking credits can support about 4.3 years of dividends at the current rate. The dividend reinvestment plan will operate at a 2.5% discount to the volume weighted average price over the five trading days from 18 August to 24 August.
Bailador is focusing on portfolio characteristics it considers defensible in the AI era. "Bailador's portfolio is extremely well positioned to benefit from AI with high degrees of proprietary data, verticalised software, regulated environments and mission critical software," co-founder and managing partner Paul Wilson said.
"As markets become better equipped to value AI forward technology businesses, we are confident we will continue to see strong value in the Bailador portfolio."
Bailador said its view that private holdings remain conservatively valued is supported by 39 of 40 third-party transactions occurring at or above carrying value, delivering an average valuation uplift of 24%.
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