FAQ: Stonegate Capital Partners' Coverage Update on NZX Limited 1H25 Performance

What is this coverage update about?

Stonegate Capital Partners has updated its research coverage on NZX Limited, analyzing the company’s 1H25 financial performance, segment updates, and providing revised valuation estimates based on current data.

How did NZX’s actual financial results compare to Stonegate’s estimates?

NZX reported revenue of $61.7M (vs. $64.1M estimate), operating profit of $11.6M (vs. $13.6M estimate), and EBITDA of $24.1M (vs. $25.0M estimate), with differences primarily driven by macro uncertainty.

What were the key performance highlights in NZX’s Markets segment?

Capital raised and listed totaled $11.9B (87.8% y/y increase), total value traded reached $21.8B (31.4% y/y increase), and information services revenue was $10.0M, up from $9.3M in 1H24.

How did the Smart (formerly Smartshares) segment perform?

Smart ended 1H25 with FUM of $14.0B, up 3.8% from 2H24, driven by positive net cashflows and market returns despite macro uncertainty, while continuing its rebrand and operational improvements.

What growth did Wealth Technology achieve in 1H25?

Wealth Technology reached $17.6B in FUA (8.6% increase from FY24), onboarded 3 new clients (total 35 active clients), won 4 additional clients, and grew external client ARR by 32.9% y/y to $11.9M.

What is NZX’s updated financial guidance for 2025?

NZX has reiterated its 2025 EBITDA guidance range of $49.0M to $54.0M, reflecting continued strong performance across core segments supported by sound fundamentals and a stabilizing macro environment.

What valuation methods did Stonegate use and what ranges did they produce?

Stonegate used Dividend Discount Model ($1.78-$2.20 range), DCF Model ($1.70-$1.96 range), and EV/EBITDA comp analysis ($1.54-$1.89 range), with mid-points of $1.99, $1.82, and $1.72 respectively.

What is Stonegate Capital Partners and what services do they provide?

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services, with an affiliate offering investment banking services through Stonegate Capital Markets.