NZX Limited Reports Strong First Half 2025 Performance with Robust Growth Across Key Segments
TL;DR
NZX Limited's strong capital raising growth of 87.8% and expanding client base provides investors with competitive advantage in emerging market opportunities.
NZX reported $61.7M revenue and $24.1M EBITDA, with detailed segment performance across Markets, Smart, and Wealth Technology divisions showing systematic growth patterns.
NZX's platform expansion and client onboarding enhance financial accessibility and wealth management services, contributing to economic stability and growth for communities.
NZX achieved $21.8B in total value traded with 31.4% growth while maintaining a solid $14.2M cash position and consistent dividend payments.
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Stonegate Capital Partners has updated its coverage on NZX Limited (NZSE: NZX) following the company's first half 2025 financial results. NZX reported revenue of $61.7 million, operating profit of $11.6 million, and EBITDA of $24.1 million for the period. While these figures came in slightly below Stonegate's estimates of $64.1 million, $13.6 million, and $25.0 million respectively, the differences were primarily attributed to macroeconomic uncertainty that affected performance across the financial sector.
The capital markets segment demonstrated exceptional strength, with capital raised and listed totaling $11.9 billion in 1H25, representing an 87.8% year-over-year increase. A significant portion of this growth stemmed from the Fonterra Co-Op Group transfer, which contributed $4.8 billion. Total value traded saw a robust 31.4% year-over-year increase to $21.8 billion, indicating strong market liquidity. The company continues to focus on building out liquidity through initiatives such as index futures introduction, following self-match preventions and NZX Dark initiatives. Information services revenue reached $10.0 million for the half, up from $9.3 million in 1H24.
Smart, previously known as Smartshares, ended the half with Funds Under Management (FUM) of $14.0 billion, representing a 3.8% increase from 2H24. This growth was driven by positive net cash flows and market returns, despite the challenging macroeconomic environment that caused a temporary slowdown in FUM growth. The company continued its rebranding efforts during the quarter, with the new brand rolling out to remaining products over the coming year. Smart's operations continue to mature through fund structure streamlining and system upgrades.
Wealth Technology closed 1H25 with $17.6 billion in Funds Under Administration (FUA), an 8.6% increase from FY24 end. This growth was supported by $1.3 billion in new client migrations and $0.1 billion in market returns. The platform expanded significantly by onboarding three new clients, bringing the total active client count to 35. Additionally, NZX won four new clients during the period. Annual Recurring Revenue from external clients grew 32.9% year-over-year, reaching $11.9 million, with a pipeline potential ARR of $13.9 million.
NZX maintained a solid financial position, ending the half with $14.2 million in cash. The company declared a fully imputed interim dividend of $0.03, unchanged from the previous year. Capital expenditures remain elevated due to continued investment in Smart and Wealth Technologies, particularly for client migration and system enhancements. The company has reiterated its 2025 EBITDA guidance in the range of $49.0 million to $54.0 million, reflecting continued strong performance across core segments supported by sound fundamentals and a stabilizing macroeconomic environment.
Curated from Reportable
