N1 Holdings delivered a record quarter for settlement volumes and cash receipts despite a tough interest rate environment, driving a 10% rise in FY26 revenue to $21.67 million and $1.21 million net profit before tax.
- Record settlement volumes in Q4 FY26
- 28% increase in quarterly cash receipts
- FY26 revenue up 10.03% to $21.67 million
- Net profit before tax approximately $1.21 million
- Expanded distribution and AI-driven efficiency gains
Record Settlement Volumes Drive Revenue and Profit Growth
N1 Holdings Limited (ASX:N1H) has reported a standout finish to FY26, setting a new record for settlement volumes in the June quarter that surpassed the previous quarter's high. This momentum translated into a 28% year-on-year increase in cash receipts from customers to $7.57 million for Q4 FY26, underpinning a 10.03% rise in full-year revenue to $21.67 million. The company posted an unaudited net profit before tax of approximately $1.21 million and EBITDA of $1.50 million, reflecting steady financial progress despite the prevailing headwinds of elevated interest rates and restrictive monetary policy.
SME Lending Remains Core Revenue Engine
The SME lending segment, including management fees from the One Lending Fund managed by N1 Asset Management, dominated the quarter’s cash inflows, contributing 96% or $7.27 million of total cash receipts. This continued reliance on SME lending highlights N1’s focus on property-secured private credit for Australian small and medium enterprises. The company’s lending capacity now stands at approximately $400 million, combining $27 million of balance sheet capital, $355 million in debt facilities, and $18 million from mortgage funds under management via the One Lending Fund.
Funding Optimisation and Distribution Expansion
N1 has actively refined its funding structure during the quarter, increasing the use of lower-cost facilities to reduce overall funding expenses as lending volumes rose. This strategic funding mix improvement supports continued lending growth while managing costs. The company also broadened its distribution channels, working with mortgage brokers, referral partners, aggregators, and launching a white label program to deepen market reach. The adoption of an AI loan scenario platform among brokers has further enhanced engagement and pipeline consistency, boosting operational scalability.
Operational Efficiency Amidst Regulatory Focus
Operating expenses remained tightly controlled despite higher business volumes, aided by ongoing AI initiatives that improved efficiency and scalability. N1 welcomed ASIC’s intensified scrutiny on governance, valuation, and investor disclosures within the private credit sector, reaffirming its commitment to robust compliance and risk management. The company’s lending principles remain conservative, focusing exclusively on loans secured against established Australian properties, excluding construction lending, and adhering to strict asset selection criteria.
Strong Cash Position and Outlook
Net cash inflow from operating activities reached $14.32 million in Q4 FY26, with the cash balance climbing to $22.92 million as of 30 June 2026. These liquidity metrics provide a solid foundation for N1’s ongoing growth ambitions in the private credit space, as it continues to navigate a challenging economic environment with disciplined origination and funding strategies.
Bottom Line?
N1’s record quarter highlights its resilience and strategic execution, but sustaining growth amid rising rates and regulatory scrutiny will test its operational and funding agility.
Questions in the middle?
- How will N1’s funding cost optimisation evolve if interest rates remain elevated?
- What impact will ASIC’s regulatory focus have on N1’s private credit lending practices?
- Can AI-driven broker engagement sustain the company’s lending pipeline growth?