Stonegate Capital Partners has updated its coverage on NZX Limited following the company's second-half 2026 financial results, revealing a mixed performance with revenue slightly below expectations but profitability metrics holding steady. The financial update provides insight into how New Zealand's primary securities exchange operator is navigating current market conditions while maintaining strategic growth initiatives.
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 fell modestly below forecasts, profitability metrics were broadly in line with expectations, demonstrating the company's ability to maintain earnings despite challenging market conditions.
The variance between actual results and forecasts was primarily driven by softer market activity amid lingering macroeconomic uncertainty. Stonegate analysts noted they expect this situation to improve over time as market conditions stabilize. The company's performance during this period highlights its resilience in maintaining profitability even when trading volumes experience temporary declines.
Key growth drivers emerged from NZX's Smart and Wealth Tech divisions, with Funds Under Management increasing 17.4% and Funds Under Administration rising 23.1% year-over-year. This substantial growth in asset management services indicates successful diversification beyond traditional exchange operations and suggests NZX is effectively capitalizing on wealth management trends in the New Zealand market.
Underlying earnings demonstrated stability with 2H26 EBITDA of $27.6 million remaining broadly in line with expectations. This consistent profitability suggests effective cost management and operational efficiency despite revenue pressures. The company's ability to maintain earnings during periods of market uncertainty is particularly noteworthy for investors concerned about volatility in financial services sectors.
NZX has maintained its 2026 EBITDA guidance range of $53.0 million to $58.5 million, signaling management confidence in continued momentum through the remainder of the fiscal year. This maintained guidance provides investors with reassurance about the company's forward-looking performance expectations and suggests management anticipates improvement in market conditions or continued success in growth segments.
The financial update is available through Stonegate's research platform at https://www.stonegateinc.com. The maintained guidance and specific growth in wealth management services indicate NZX is successfully navigating current market challenges while positioning itself for future opportunities in financial technology and asset management sectors.
