62% of large Australian disability providers post FY25 operating deficits, KordaMentha finds

• Australia’s Disability Provider Outlook 2026 found 16 of 26 large providers (62%) posted FY25 operating losses; the median operating margin was -1.1%.
• Eight providers (31%) had net assets below 20% of annual revenue, limiting their capacity to absorb sustained operating losses.
• Seven providers (27%) combined operating losses with net assets below 20% of revenue, leaving them in the most financially challenged position.
• Nine providers (35%) generated positive operating returns with stronger balance sheets; several had diversified revenue around specialist services.
• Provider size showed no relationship with operating performance, highlighting the importance of service mix, workforce productivity and financial discipline.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. KordaMentha Pty Ltd published the original content used to generate this news brief on October 19, 2026, and is solely responsible for the information contained therein.