N1 Holdings Posts Record Settlement Volumes and Revenue Growth in Q3 FY26

Record Settlement Volumes Drive Financial Momentum

N1 Holdings Limited (ASX:N1H) has reported a standout March quarter with record settlement volumes fueling a 127% jump in cash receipts from customers compared to the same period last year. The company’s FY26 year-to-date (FYTD) revenue climbed 8.87% to $15.96 million, underpinning a net profit before tax of approximately $1.35 million and EBITDA of $1.58 million, all unaudited figures.

This surge comes despite a backdrop of rising interest rates and geopolitical uncertainty that have unsettled many lenders. N1H’s disciplined origination strategy and focus on managing funding costs have proved resilient, allowing it to maintain operational efficiency and steady lending activity.

SME Lending Remains Core Revenue Engine

The SME lending business, including management fees from the One Lending Fund managed by its subsidiary N1 Asset Management, accounted for 95% of total cash receipts in the quarter, amounting to $6.39 million. This segment continues to be the major revenue generator, reflecting the company’s tight focus on property-backed loans secured against established Australian assets and excluding construction lending.

Notably, One Lending Fund’s revenue of $273,000 for the quarter is reported separately as it is not consolidated into N1H’s financials. The fund itself forms part of the company’s broader lending capacity, which totals approximately $352 million, comprising $28 million in private debt balance sheet capital, $305 million under various debt facilities, and $19 million from the One Lending Fund.

Funding Efficiency and Operational Improvements

While the net cash outflow from operating activities was $25.95 million for Q3, this figure masks the underlying lending dynamics. Adjusted for capital raised and repaid by investors, the net cash inflow from operating activities was $1.98 million, indicating that more capital was lent than repaid during the quarter.

Operational costs remained stable despite higher origination volumes, aided by ongoing AI initiatives that enhanced processing efficiency and scalability. The company also expanded its distribution channels beyond traditional mortgage aggregators, launching a white label program to diversify origination pathways.

This strategic funding optimisation and operational discipline align with N1’s earlier moves to expand lending capacity and improve profitability, as seen in its 65 percent profit surge and lending capacity boost reported in February 2026.

Regulatory Compliance and Governance

N1 Holdings continues to operate within strict regulatory and governance frameworks, supporting effective market oversight. Its lending principles remain conservative, focusing exclusively on loans secured against established properties and avoiding higher-risk construction lending. Executive remuneration and related party transactions were disclosed, with payments aligned to arm’s length terms.

As of 31 March 2026, the company held $8.89 million in cash, positioning it to sustain operations and pursue growth opportunities amid a competitive and evolving private credit market.