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NZX Limited (NZ:NZX)
:NZX
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NZX (NZX) AI Stock Analysis

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NZ:NZX

NZX

(NZX)

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Outperform 73 (OpenAI - Gpt-5.6Sol)
Rating:73Outperform
Price Target:
$1.50
â–²(3.45% Upside)
Action:N/A
Date:10/05/26
Overall score reflects solid financial performance (steady revenue growth and strong operating profitability tempered by a 2025 net income/net margin dip and uneven cash conversion) and supportive technicals (price above key moving averages with positive momentum). Valuation is balanced, with an attractive dividend yield partly offset by a moderate-to-high P/E.
Positive Factors
Diversified earnings growth
NZX is demonstrating that growth is not dependent on one market activity alone. Smartshares, wealth technology and derivatives contributed alongside its core exchange operations, supporting resilience, broader revenue opportunities and a stronger platform for investment over the next several quarters.
Negative Factors
Sharp decline in capital raising
A sustained slowdown in new issuance reduces activity linked to listings and capital formation, potentially limiting issuer-service growth and weakening the pipeline of future listed companies. This creates a structural headwind even while trading and funds businesses remain comparatively stronger.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified earnings growth
NZX is demonstrating that growth is not dependent on one market activity alone. Smartshares, wealth technology and derivatives contributed alongside its core exchange operations, supporting resilience, broader revenue opportunities and a stronger platform for investment over the next several quarters.
Read all positive factors

NZX (NZX) vs. SPDR S&P 500 ETF (SPY)

NZX Business Overview & Revenue Model

Company Description
NZX Limited functions as the primary operator of New Zealand's stock exchange. The company's diverse activities are structured across five principal divisions. Its Capital Markets Origination segment offers essential services to both existing and ...
How the Company Makes Money
NZX primarily makes money by charging fees tied to the operation and use of its market infrastructure and information products. Key revenue streams typically include: (1) Trading and post-trade services: fees earned from on-market trading activity...

NZX Earnings Call Summary

Earnings Call Date:Feb 25, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 19, 2027
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial story: revenue up 7.3%, EBITDA (pre‑one‑offs) up 11.6%, strong growth in Smart and Wealth Technologies (ARR +22.2%, FUA +23.1%, average FUM +20.3%), improved margin (41.5%), and a higher dividend supported by stronger free cash flow (+25%). Offsetting these positives were headwinds in the Markets business (impacted by the Fonterra contract move and lower contractual revenues), a headline NPAT decline driven by prior year accounting items, targeted integration and restructuring costs, and near‑term uncertainty from macro and regulatory factors. On balance the company showed solid momentum in its growth businesses and healthy cash generation, while managing legacy market and one‑off pressures.
Positive Updates
Strong EBITDA Performance
Operating earnings (EBITDA) before integration and restructuring were $53.5 million, up 11.6% year‑on‑year; including integration and restructuring costs EBITDA was $51.7 million, also up ~11%.
Negative Updates
Markets Segment Headwinds
Markets operating earnings decreased by $2.2 million; Markets revenue declined $1.7 million due to the Fonterra contract moving to the main board, electricity authority contract repricing at lower preset levels, and absence of one‑off audit/backdated license revenues.
Read all updates
Q4-2025 Updates
Negative
Strong EBITDA Performance
Operating earnings (EBITDA) before integration and restructuring were $53.5 million, up 11.6% year‑on‑year; including integration and restructuring costs EBITDA was $51.7 million, also up ~11%.
Read all positive updates
Company Guidance
NZX guided FY2026 operating earnings (excluding one‑offs) of $53.0m–$58.5m (the bottom of the range equals FY2025 operating earnings of $53.5m), noting the range is conservative and subject to normal market caveats; management expects Wealth Technologies and Smart to drive growth while Markets and issuance remain subject to macro conditions. Key FY2025 metrics underpinning the guidance: revenue $128.9m (+7.3%), operating expenses $75.5m (+4.5%), operating margin 41.5%, operating earnings before integration/restructuring $53.5m (+11.6%), reported NPAT $21.5m (like‑for‑like +20.2%), free cash flow $26.5m (+25%) and net cash flow $3.2m; Wealth Technologies ARR +22.2% (ARR $13.2m at Dec‑25 with $1.3m of migrations anchored and $4.3m of additional prospective migrations — potential ARR ~ $17.8m), FUA +23.1% and Wealth Tech operating earnings $6.3m (+31.1%); Smart average FUM +20.3%, FUM/Funds under management growth ~17.9% and Smart operating earnings $29.3m (+30.9%); dairy derivatives lots +22.2%; Board declared a fully‑imputed final dividend $0.033/share (full year $0.063/share, up from $0.061) and signalled a path to progressively lift dividends, while expecting Wealth Tech CapEx to increase for at least the next two years to support client migrations.

NZX Financial Statement Overview

Summary
Fundamentals are solid overall: revenue has trended up steadily with stronger growth in 2025 and operating profitability remains strong. Offsetting this, net income and net margin dipped in 2025 despite higher revenue, cash conversion has been uneven (including negative free cash flow in 2022), and leverage remains moderately elevated without clear de-risking.
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
72
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue143.85M128.95M120.65M108.39M95.67M87.87M
Gross Profit104.49M109.67M120.65M41.63M37.97M37.08M
EBITDA56.18M53.78M56.31M40.11M36.60M35.78M
Net Income22.98M21.48M25.49M13.55M14.16M15.02M
Balance Sheet
Total Assets296.30M277.39M282.43M276.47M233.20M180.63M
Cash, Cash Equivalents and Short-Term Investments35.14M52.05M48.83M44.67M40.61M49.06M
Total Debt73.53M81.16M81.19M82.32M60.71M52.52M
Total Liabilities174.50M155.20M155.44M159.10M121.49M110.02M
Stockholders Equity121.79M122.19M127.00M117.37M111.71M70.61M
Cash Flow
Free Cash Flow43.45M27.85M22.46M22.04M-17.06M10.47M
Operating Cash Flow44.25M39.49M35.89M34.44M23.44M27.39M
Investing Cash Flow-13.65M-14.84M-13.42M-34.93M-57.13M-16.92M
Financing Cash Flow-29.64M-21.42M-18.31M4.55M25.25M-14.19M

NZX Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.45
Price Trends
50DMA
1.46
Positive
100DMA
1.44
Positive
200DMA
1.40
Positive
Market Momentum
MACD
<0.01
Negative
RSI
61.45
Neutral
STOCH
79.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:NZX, the sentiment is Positive. The current price of 1.45 is below the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.46, and above the 200-day MA of 1.40, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.45 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NZ:NZX.

NZX Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$721.16M12.6716.98%12.16%0.08%-32.20%
73
Outperform
$500.45M21.7518.84%5.13%15.44%23.50%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
61
Neutral
$1.19B12.747.10%6.59%-4.94%139.47%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NZ:NZX
NZX
1.52
0.08
5.34%
NZ:TWR
Tower Limited
2.10
0.47
28.52%
NZ:HGH
Heartland Group Holdings Ltd.
1.26
0.24
24.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 05, 2026