Stonegate Capital Partners has updated its coverage on NZX Limited (NZSE: NZX), providing analysis of the company's second-half fiscal 2026 performance. NZX reported 2H26 revenue of $67.2 million, operating profit of $17.7 million, and EBITDA of $27.6 million. These figures compare to Stonegate's estimates of $68.8 million, $16.2 million, and $27.7 million, respectively. While revenue came in modestly below expectations, profitability was broadly in line with forecasts.
The variance in revenue was primarily driven by softer market activity amid lingering macroeconomic uncertainty, a trend Stonegate expects to improve over time. Despite these headwinds, NZX's Smart and Wealth Tech segments demonstrated strong growth, with funds under management (FUM) increasing 17.4% and funds under administration (FUA) rising 23.1%. Underlying earnings held up well, with 2H26 EBITDA of $27.6 million aligning with projections.
Looking ahead, NZX provided 2026 EBITDA guidance in the range of $53.0 million to $58.5 million, signaling confidence in continued momentum. This guidance reflects the company's ability to navigate challenging market conditions while capitalizing on growth opportunities in its technology-driven businesses.
Stonegate Capital Partners, a leading capital markets advisory firm, provides investor relations, equity research, and institutional investor outreach services. The full announcement, including downloadable images and additional details, is available here.
For investors, the key takeaway is NZX's resilience in maintaining profitability despite revenue headwinds, coupled with robust growth in its Smart and Wealth Tech segments. The company's ability to grow FUM and FUA by double digits indicates strong demand for its services, which could drive future revenue expansion as macroeconomic conditions stabilize. The provided EBITDA guidance suggests management's confidence in sustaining this trajectory.
Stonegate's update underscores the importance of NZX's strategic focus on technology-driven wealth management solutions, which are helping to offset cyclical market volatility. As the macroeconomic environment improves, NZX is well-positioned to benefit from increased market activity and continued growth in its core business lines.
