☕️Euc Fluke or Nuke

Good morning.

Aussie weight-loss unicorn Eucalyptus is being eaten up by a US company battling ongoing legal drama, a surge in short sellers, and a spiralling share price, reports Capital Brief.

Shares in San Francisco-headquartered Hims & Hers have more than halved since the start of 2026 as it grapples with legal issues, competition pressure and revenue concerns. The stock was pushed even lower on Tuesday after the company reported its fourth-quarter earnings.

Some USD910 million, or $1.3 billion of the $1.6 billion Eucalyptus sale price comprises deferred payments that could be paid in Hims & Hers equity, under the terms of the deal.

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Market movers

Shares in automotive accessories maker ARB Corporation plunged on Tuesday after the company reported a 17% drop in first half profit, citing lower sales margins driven by a weaker Australian dollar and reduced factory overhead recoveries.

The quick sync

• A tale of two fund managers saw Regal shares rise while HMC’s fell despite higher assets and a USD 630 million KKR deal. (Capital Brief)

• About 40% of Australians back cutting the capital gains tax discount, as Jim Chalmers weighs reform for the 2026 to 2027 budget. (Capital Brief)

• One Nation is within a point of Labor in the latest Capital Brief DemosAU poll, reinforcing that its continued surge may be more than a protest blip. (Capital Brief)

• Harvard-led study says AI can predict 71% of active-fund trades. (Bloomberg)

• How Australia became the world’s unlikely cocaine capital. (Bloomberg)

Trading floor

M&A

• Kelsian to sell tourism assets to Journey Beyond for $161m, proceeds to cut debt and fund growth. (Capital Brief)

• Zurich enlists ex-ClearView Wealth bankers for $415m bid, reflecting changes in ASX advisory roles since ClearView’s last strategic review. (AFR)

• Canva acquires Cavalry and MangoAI to boost motion design and AI-powered marketing tools. (Capital Brief)

• Domino’s repair work and weaker sales outlook have cooled private equity interest, with KKR and Bain now unlikely to bid. (The Australian)

• Heidi buys UK AI startup Automedica, launches new AI products for doctors after $125 m funding. (Startup Daily)

• Insignia’s share price nears CC Capital’s $4.80 offer, casting doubt on the $3.3b takeover. (The Australian)

Capital Markets

• AUB profit rises to $35.3m, NZ weak but guidance lifted. (Capital Brief)

• Monadelphous profit up 53%, shares rally on record revenue. (Capital Brief)

• Investor says Woodside’s $52b valuation undervalues US LNG growth. (AFR)

• Dalrymple Bay FY profit drops to $29.2m on refinancing costs. (Capital Brief)

• Kapstream has raised over $200m of its $300m credit LIT target, closing the book a week early due to strong demand. (AFR)

• Regal FY25 profit jumps 65% despite Opthea write-down. (Capital Brief)(Capital Brief)

• Nine Entertainment first-half profit up 42%, dividend increased. (Capital Brief)

• Apple defends fees to Australian banks as lawmakers question its market power. (AFR)

• Latitude calls class action flawed, vows strong defence. (Capital Brief)

• Allegro Funds targets Laser Clinics Australia, moving from distressed deals to growth-focused investments. (AFR)

• Southern Cross half-year revenue slips in weak ad market. (Capital Brief)

• Abacus Group swings to $48m half-year profit. (Capital Brief)

• Cuscal tipped for ASX block trade following solid half-year performance. (AFR)

• Woodside FY profit drops 24% on weaker prices. (Capital Brief)

• Adore Beauty’s profit dives amid heavy discounts, but full-year outlook stays. (AFR)

• ARB’s half-year profit down 17%, shares tumble. (Capital Brief)

• Deloitte Australia bans use of public AI tools for confidential data amid leak concerns. (AFR)

• Scentre Group profit jumps 69% on higher customer traffic; distributions and FFO grow. (Capital Brief)

• Domain begins divesting five software assets under CoStar, with Ad Astra advising. (AFR)

• Tyro Payments profit soars 73% as payment volumes rise; FY26 guidance maintained. (Capital Brief)

• City Chic sees Australian sales growth, US hit by tariffs. (AFR)

• Viva Energy profit down 28% on soft divisions, yet shares gain on FY26 optimism. (Capital Brief)

• Culture Amp puts potential liquidity event on hold due to tech sell-off. (AFR)

• Regal Partners posts strong FY25 results, bullish on AI firm Firmus; HMC Capital dips. (Capital Brief)

• Politico to launch Canberra Playbook, entering Australia’s federal politics media market. (AFR)

• Steadfast H1 profit up 7.3%, dividend lifted and FY26 guidance reaffirmed. (Capital Brief)

• Tanarra Capital and founder John Wylie under redemption pressure as fund managers miss benchmarks. (AFR)

• Hims & Hers shares slump amid legal woes, clouding its $1.6b Eucalyptus takeover. (Capital Brief)

• Marketlend-linked credit fund investors at risk after IPartners flags record and repayment issues. (AFR)

• Stripe valuation soars to USD159b in latest share sale. (FT)

• Hegseth gives Anthropic until Friday to back down on AI safeguards. (FT)(Axios)

• Boaz Weinstein warns ‘wheels coming off’ private credit funds. (Bloomberg)

• UK sanctions New Zealand insurer Maritime Mutual after Reuters report. (Reuters)

• What will Trump say next? Prediction-market traders are betting on it. (WSJ)

• Trump administration considers requiring banks to collect citizenship information. (WSJ)

• Bostic says Fed cannot offset possible rise in structural unemployment. (Reuters)

• Fed's Cook says AI triggering big changes, sees possible short-term unemployment rise. (Reuters)(Bloomberg)

VC 

• Hismile’s Stain ID mouthwash shows visible results, boosting sales online and at Chemist Warehouse. (Smart Company)

People moves

• NAB’s Shaun Dooley to retire end-2026; Inder Singh named incoming CFO. (Capital Brief)

• Shayne Elliott abandons legal fight over ANZ bonuses; no settlement reached. (Capital Brief)

• CBA will cut 300 tech jobs but invest $90m to retrain staff as AI reshapes roles, amid union concerns over job security. (Capital Brief)

The watercooler