N1 Holdings Reports $1.04M Net Profit, 4.8% Revenue Growth in HY26
N1 Holdings Limited reported a robust 64.7% increase in net profit after tax to $1.04 million for the half-year ended December 2025, driven by strong commercial lending growth and operational efficiencies. The company also expanded its committed lending capacity to over $355 million while maintaining a stable dividend.
- 64.7% increase in net profit after tax to $1.04 million
- Revenue up 4.8% to $11.14 million, led by commercial lending
- EBITDA rose to $1.38 million, reflecting improved operational efficiency
- Committed lending capacity expanded to over $355 million
- Dividend declared at 0.30 cents per share, slightly lower than prior period
Strong Financial Performance Amid Market Challenges
N1 Holdings Limited has delivered a standout half-year result for the period ending 31 December 2025, reporting a 64.7% surge in net profit after tax to $1.04 million, up from $632,535 in the previous corresponding period. This impressive profit growth accompanies a 4.8% rise in revenue to $11.14 million, underscoring the company’s solid footing in the competitive financial services sector.
The commercial lending segment remains the powerhouse of N1’s business, contributing 95.9% of total revenue. Lending income increased to $10.68 million, supported by a diversified and expanded funding base. Mortgage broking and advisory services also contributed modestly, maintaining steady growth.
Operational Efficiency and Funding Diversification
EBITDA climbed to $1.38 million, reflecting not only higher revenue but also operational efficiencies driven by the company’s ongoing AI initiatives. These technology enhancements have helped stabilise operating expenses despite increased origination volumes, a notable achievement in a sector often challenged by rising costs.
Funding diversification was a key strategic focus during the half-year. N1 Holdings expanded its committed lending capacity to over $355 million, comprising $28 million in balance sheet capital, $305 million under debt facilities, and $22 million in mortgage funds under management. This broad funding base is designed to mitigate liquidity and interest rate risks, ensuring sustainable margin management.
Risk Management and Governance
The company continues to emphasise robust risk management frameworks, addressing compliance, credit, liquidity, market, cybersecurity, and climate-related risks. N1 Holdings maintains a disciplined credit policy with strong collateral requirements and regular portfolio reviews. Cybersecurity and financial crime prevention remain priorities, with ongoing staff training and system enhancements.
Governance standards align with ASX Corporate Governance Principles, reflecting the company’s commitment to transparency and regulatory compliance. The half-year financial statements were reviewed by independent auditors with no qualifications, reinforcing confidence in the reported results.
Dividend and Outlook
Despite the strong profit growth, the company declared a slightly reduced dividend of 0.30 cents per share, down from 0.33 cents in the prior period. This cautious approach may reflect a balance between rewarding shareholders and retaining capital to support growth initiatives and funding diversification.
Net tangible assets per share improved to 2.88 cents, up from 1.48 cents, signalling enhanced shareholder value. With a net asset position of $3.02 million and a well-capitalised lending book, N1 Holdings is positioned to navigate evolving market conditions while pursuing growth opportunities.
Bottom Line?
N1 Holdings’ strong profit jump and funding expansion set the stage for sustained growth, but investors will watch closely for how risk factors and dividend policy evolve.
Questions in the middle?
- How will N1 Holdings balance dividend payouts with funding growth in coming periods?
- What impact will rising interest rates have on the company’s lending margins and funding costs?
- How effectively will AI initiatives continue to drive operational efficiencies amid higher origination volumes?
