NZX Limited reported a robust first half of 2026 with operating earnings up 9.4% and net profit rising 18%. The exchange strengthened its funds management and wealth administration arms, relaunched equity derivatives, and declared a higher interim dividend. A new CEO is set to take the helm in September.
- Operating earnings (EBITDA) rose 9.4% to $26.3 million
- Net profit after tax increased 18% to $9.8 million
- Smartshares funds under management surged 28.5% to $18 billion
- Interim dividend raised to 3.2 cents per share
- New CEO Hishaam Mirza appointed, starting September
Solid Earnings Growth Despite Market Volatility
NZX Limited (NZX) delivered a commendable first half in 2026, reporting operating earnings (EBITDA) of $26.3 million, marking a 9.4% increase from the same period last year. Net profit after tax climbed 18% to $9.8 million, underscoring the resilience of the group amid ongoing global market uncertainties, including geopolitical tensions that rattled investor confidence.
The exchange’s operating revenue rose 13.3% to $76.6 million, benefiting from growth across its core Markets operations, Smartshares funds management, and NZX Wealth Technologies (NZXWT). While operating expenses increased 16%, this was largely attributable to strategic investments in growth areas rather than inefficiencies.
Funds Management and Wealth Technology Drive Expansion
Smartshares Limited, NZX’s funds management arm, saw its external funds under management swell 28.5% year-on-year to a record $18 billion. This surge was propelled by strong net cash flows, including a significant one-off wholesale mandate, and positive market returns. The SuperLife KiwiSaver funds maintained strong performance, with nearly all funds ranking in the first or second quartile over five years after fees.
NZXWT also posted impressive growth, with funds under administration increasing 20.1% to $21.1 billion and annual recurring revenue climbing 15%. The platform continues to onboard new clients and migrate existing ones, with a pipeline expected to sustain growth for at least the next two years. The planned migration of Smart’s KiwiSaver registry to NZXWT in late 2026 is set to open a new addressable market exceeding $275 billion.
Market Infrastructure and Product Innovation
The relaunch of the S&P/NZX 20 Index Futures in April was a key milestone, with 6,860 lots traded and a notional value of $51.2 million since launch. This equity derivatives product is anticipated to deepen market liquidity, enhance price discovery, and provide investors with new risk management tools over time.
Secondary capital raised by issuers increased 5.9% to $3.6 billion, despite a 49.3% drop in total capital raised due to a large 2025 transaction involving Fonterra Co-operative Group. Market capitalisation grew 3.8% year-on-year to $244.1 billion, supported by a 5.7% increase in NZX Main Board equity market capitalisation.
Leadership Transition and Strategic Outlook
After nine years at the helm, CEO Mark Peterson stepped down in August, leaving behind a legacy of steady growth and operational resilience, including navigating the company through the 2020 cyber-attack. Graham Law has been appointed Acting CEO, with Hishaam Mirza, a seasoned investment executive with 25 years’ experience including a senior role at NZ Super, confirmed as the new CEO starting 14 September 2026.
The Board declared an interim dividend of 3.2 cents per share, up 6.7% from the previous year, reflecting confidence in the company’s earnings trajectory. NZX reaffirmed its full-year 2026 operating earnings guidance of $53.0 million to $58.5 million, with the first half results tracking towards the midpoint.
Regulatory Engagement and Market Development
NZX continues to work closely with government and regulators to enhance capital market settings, including consultations on dual-class shares and tiered compliance frameworks for SMEs. The exchange is also investing in technology and infrastructure resilience, with a focus on sustainable finance and improving market access and efficiency.
Looking ahead, NZX aims to deepen liquidity, foster market confidence, and grow its funds management and wealth technology businesses. The successful integration of new products and regulatory reforms will be critical to sustaining momentum in a complex and evolving market environment.
Bottom Line?
NZX’s diversified model and strategic investments have bolstered resilience, but upcoming CEO leadership and market conditions will test its growth momentum.
Questions in the middle?
- How will new CEO Hishaam Mirza influence NZX’s strategy and market positioning?
- Can NZX sustain funds management growth amid fluctuating equity issuance?
- What impact will regulatory reforms have on market liquidity and issuer participation?