DALLAS, TX -- February 26, 2026 -- NZX Limited (NZSE: NZX): Stonegate Capital Partners Updates Coverage on NZX Limited (NZSE: NZX). NZX reported 2H26 revenue, operating profit, and EBITDA of $67.2M, $17.7M, and $27.6M, respectively. This compares to our estimates of $68.8M, $16.2M, and $27.7M. Revenue was modestly below our forecast, while profitability was broadly in line. The variance was mainly driven by softer market activity amid lingering macro uncertainty, which we expect to improve over time.
Markets: Capital listed and raised in FY25 totaled $14.4B, down 8.9% y/y, excluding Fonterra Co-operative Group’s $7.1B transfer to the NZX Main Board. Including the Fonterra transfer, total capital listed and raised was $21.5B. The total value traded saw a decrease in 2H25 of 22.1% y/y to $19.4B. NZX continues to focus on improving market liquidity through initiatives including self-match prevention, NZX Dark, and the planned launch of S&P/NZX 20 Index Futures in 2H26. Information services revenue was $10.2M in the half, up from $9.7M in 2H24.
Smart: Previously “Smartshares,” Smart ended the half with FUM of $14.9B, up 17.4% from 2H24. Growth was supported by positive net cashflows and market returns, alongside a favorable longer-term backdrop of rising KiwiSaver membership and contribution rates, increased non-KiwiSaver and self-directed investing activity, and growing NZ ETF penetration from still-low levels relative to the U.S. and Europe. The Company also continued rolling out the Smart rebrand while advancing operational improvements through fund structure streamlining and system upgrades.
Wealth Technology: Wealth Technologies finished FY25 with FUA of $19.94B, up 23.1% y/y. Growth was driven by new client migrations, net cash flows from existing clients, and $1.43B of market returns. ARR on FUA rose 22.2% y/y to $13.2M, with total ARR on full migration reaching $17.8M. We note that NZX is working on migrating a large SaaS client into Wealth Tech, with a dedicated sprint team that should complete the migration by mid-2027.
Financial Position: NZX ended FY25 with a solid balance sheet and $32.1M in cash. The Board declared a fully imputed final dividend of 3.3 cents per share, bringing total FY25 dividends to 6.3 cents per share. Investment remained focused on Smart and Wealth Technologies.
Updated Guidance: NZX has announced 2026 EBITDA guidance in the range of $53.0M to $58.5M, reflecting continued strong performance across core segments. Growth is underpinned by sound fundamentals and a stabilizing macro environment. We have made adjustments to our model.
Valuation: We use a Dividend Discount Model, DCF Model and EV/EBITDA comp analysis to guide our valuation. Our Dividend Discount uses the NZX stated range of payout ratios on 2027E Net Income to arrive at a valuation range of $1.90 to $2.06 with a mid-point of $2.11. Our DCF analysis produces a valuation range of $1.80 to $2.12 with a mid-point of $1.95. Our EV/EBITDA valuation results in a range of $1.79 to $2.18 with a mid-point of $1.98.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.
