Stonegate Capital Partners has issued an updated coverage report on NZX Limited (NZSE: NZX) following the release of the company's second-half 2026 financial results. The report analyzes NZX's performance against Stonegate's prior estimates, providing insight into the financial markets operator's current trajectory and future outlook.
For the second half of 2026, NZX reported 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. The analysis indicates revenue came in modestly below the firm's forecast, while profitability metrics were broadly in line with expectations. Stonegate attributes the revenue variance primarily to softer market activity, a condition influenced by lingering macroeconomic uncertainty. The firm expresses an expectation that this market environment will improve over time.
A key highlight from the results is the performance of NZX's Smart and Wealth Technology segments, which were identified as primary growth drivers. Funds Under Management (FUM) increased by 17.4%, while Funds Under Administration (FUA) saw a more substantial rise of 23.1% year-over-year. This growth within the technology-driven segments underscores a strategic shift and diversification within the company's revenue streams beyond traditional market operations.
The underlying earnings strength is further evidenced by the 2H26 EBITDA figure of $27.6 million, which Stonegate notes was broadly in line with its projections. Perhaps more indicative of management's confidence is the company's full-year 2026 EBITDA guidance, which is set in a range of $53.0 million to $58.5 million. This forward-looking statement signals an expectation of continued operational momentum and financial resilience despite the noted headwinds.
The implications of this update are multifaceted for investors and the financial services industry. For market participants, NZX's ability to maintain profitability in a softer trading environment, coupled with strong growth in its technology segments, may suggest effective cost management and successful execution of its strategic initiatives. The provided guidance offers a measure of predictability in an uncertain macro climate. For the broader industry, the performance highlights the increasing importance of technology and wealth management services as stable revenue components for financial market infrastructure providers, potentially setting a benchmark for peers. The full research update, including additional data and analysis, is available for review at https://www.stonegateinc.com.
