NZX Limited (NZSE: NZX) reported first-half 2025 financial results showing revenue of $61.7 million, operating profit of $11.6 million, and EBITDA of $24.1 million. While these figures fell slightly below analyst estimates of $64.1 million, $13.6 million, and $25.0 million respectively, the variance was primarily attributed to macroeconomic uncertainty. Stonegate Capital Partners expects a portion of this differential to be compensated in the second half of 2025 as market conditions stabilize.
The company's markets division demonstrated exceptional performance with capital raised and listed totaling $11.9 billion, representing an 87.8% year-over-year increase. A significant portion of this growth stemmed from the Fonterra Co-Op Group transfer valued at $4.8 billion. Total value traded saw a robust 31.4% year-over-year increase to $21.8 billion. NZX continues focusing on liquidity building through initiatives including 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 the first half of 2024.
Smartshares, now rebranded as Smart, ended the half with funds under management (FUM) of $14.0 billion, representing a 3.8% increase from the second half of 2024. This growth was driven by positive net cash flows and market returns despite macroeconomic challenges that temporarily impacted FUM growth. The company continued its rebranding initiative, with the new brand rolling out to remaining products throughout the coming year. Smart's operations continue maturing through fund structure streamlining and system upgrades.
Wealth Technology division closed the first half with $17.6 billion in funds under administration (FUA), an 8.6% increase from fiscal year 2024 end. This growth was fueled by $1.3 billion in new client migrations and $0.1 billion in market returns. The platform expanded significantly, onboarding three new clients to reach a total active client count of 35. Additionally, NZX secured four new clients during the period. Annual Recurring Revenue from external clients grew 32.9% year-over-year to $11.9 million, with pipeline potential ARR reaching $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 reiterated its 2025 EBITDA guidance range of $49.0 million to $54.0 million, reflecting strong performance across core segments supported by sound fundamentals and a stabilizing macroeconomic environment.
