Curated News
By: NewsRamp Editorial Staff
August 22, 2025
NZX Reports Strong H1 Growth Despite Macro Challenges, Reaffirms Guidance
TLDR
- 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.
Impact - Why it Matters
This news matters because NZX Limited serves as a critical barometer for New Zealand's financial markets and investment landscape. As the country's primary securities exchange, its performance directly impacts investors, listed companies, and the broader economy. The strong capital raising activity ($11.9B, up 87.8% y/y) indicates robust corporate fundraising and investor confidence despite macroeconomic uncertainty. The growth in Wealth Technology and Smart segments demonstrates NZX's successful diversification beyond traditional exchange services, offering more sophisticated investment products and platforms to retail and institutional investors. For market participants, NZX's stability and growth signal healthy capital markets, while the maintained dividend and solid balance sheet provide confidence in the company's financial resilience. The reaffirmed guidance suggests management's optimism about economic recovery, making this relevant for anyone with exposure to New Zealand investments or interest in Pacific Rim financial markets.
Summary
Stonegate Capital Partners has updated its coverage on NZX Limited (NZSE: NZX), revealing mixed financial results for the first half of 2025. The company reported revenue of $61.7 million, operating profit of $11.6 million, and EBITDA of $24.1 million, all slightly below Stonegate's estimates of $64.1 million, $13.6 million, and $25.0 million respectively. The variance was primarily attributed to macro uncertainty, though analysts expect partial recovery in the second half as conditions stabilize. NZX maintained a solid financial position with $14.2 million in cash and declared a flat interim dividend of $0.03 per share.
The company demonstrated strong performance across its core business segments despite the challenging environment. Markets division saw capital raised and listed surge 87.8% year-over-year to $11.9 billion, driven significantly by the Fonterra Co-Op Group transfer worth $4.8 billion. Smart (formerly Smartshares) ended the half with funds under management of $14.0 billion, up 3.8% from the previous half, while continuing its rebranding initiative. Wealth Technology segment showed impressive growth with funds under administration reaching $17.6 billion, an 8.6% increase, fueled by $1.3 billion in new client migrations and expanding its client base to 35 active clients.
NZX has reiterated its 2025 EBITDA guidance range of $49.0 million to $54.0 million, reflecting confidence in continued strong performance across all segments. Stonegate's valuation analysis using Dividend Discount, DCF, and EV/EBITDA models produced target price ranges between $1.54 and $2.20, with mid-points clustering around $1.70-$1.99. The company's growth is underpinned by sound fundamentals, ongoing investments in technology platforms, and a stabilizing macroeconomic environment that should support recovery in the latter half of 2025.
Source Statement
This curated news summary relied on content disributed by Reportable. Read the original source here, NZX Reports Strong H1 Growth Despite Macro Challenges, Reaffirms Guidance
