Qualitas Posts 42% Rise in EBITDA and 38% FUM Growth in First Half FY26
Qualitas Limited has delivered a standout first half of FY26, posting a 30% rise in normalised net profit before tax and record investment deployment, reinforcing its position in Australia’s alternative investment sector.
- Normalised NPBT up 30% to $30.2 million
- Fee Earning Funds Under Management grew 38% to $10.9 billion
- Record $3.7 billion deployed, a 57% increase on 1H25
- Funds management EBITDA margin expanded to 55%
- FY26 guidance reaffirmed with NPBT between $60M and $66M
Robust Growth Amidst Challenging Markets
Qualitas Limited (ASX, QAL) has reported a strong financial performance for the six months ending 31 December 2025, showcasing resilience and growth in a competitive alternative investment landscape. The company’s normalised net profit before tax (NPBT) surged 30% year-on-year to $30.2 million, driven by a combination of higher base management fees, transaction fees, and operational efficiencies.
Fee Earning Funds Under Management (FUM) climbed 38% to $10.9 billion, supported by a record $3.7 billion in capital deployment, a 57% increase compared to the prior corresponding period. This surge in deployment underscores Qualitas’ ability to source and execute investment opportunities despite an environment marked by increased market entrants and regulatory scrutiny.
Operational Efficiency and Margin Expansion
Qualitas’ funds management earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 42% to $34.3 million, with the EBITDA margin expanding to an impressive 55%. This margin growth reflects the company’s operational leverage from prior platform investments and disciplined cost management, resulting in a record gross operating margin of 46%, the highest since its IPO.
Transaction fees jumped 69%, while performance fees from credit funds increased 75%, signalling strong fund maturation and cash realisation. The company’s balance sheet remains strategically preserved, with co-investment drawdowns up 24% to $205 million, positioning Qualitas to capitalise on income opportunities expected in the second half of FY26.
Strategic Positioning and Market Outlook
Group Managing Director Andrew Schwartz highlighted the company’s success in securing new offshore mandates and increased allocations from existing investors, despite a moderating capital raising environment. He noted a shift towards larger investment deals, with 78% of FY26 deals exceeding $100 million, enhancing investment efficiency and sustainable growth prospects.
Looking ahead, Qualitas reaffirmed its FY26 guidance, projecting NPBT between $60 million and $66 million and earnings per share between 13.9 and 15.3 cents. The company anticipates continued momentum driven by strong investment activity, growing global demand for private credit in Australia, and favourable market dynamics in real assets and credit sectors.
Schwartz also pointed to emerging income credit opportunities amid regulatory changes reshaping competition, positioning Qualitas to capture attractive, long-term risk-adjusted returns as some competitors retreat.
Sustained Momentum in Real Assets
Qualitas’ anchoring in real asset sub-sectors with enduring demand fundamentals, including multi-dwelling residential markets, supports consistent growth despite broader market volatility. The company expects the trend towards affordable housing segments to persist, driven by higher living costs and shifting demand patterns.
Overall, Qualitas’ first half performance and strategic positioning suggest a robust platform ready to navigate evolving market conditions and capitalise on expanding opportunities in private credit and real assets.
Bottom Line?
Qualitas’ record first half sets a strong foundation, but investors will watch closely how it sustains growth amid shifting market dynamics.
Questions in the middle?
- How will Qualitas manage potential risks from increased regulatory scrutiny in private credit?
- What impact will rising interest rates have on Qualitas’ principal income and co-investment returns?
- Can Qualitas maintain its deployment momentum and margin expansion in a more competitive market?
