Insignia Financial Ltd.

For 1H26, net revenue was $718.2 million, up 1.8% year over year, supported by average FUA growth of 6% to $339 billion. EBITDA increased 6.5% to $238.2 million, underlying NPAT rose 6.3% to $132.1 million, and reported NPAT improved from a loss of $16.8 million to a profit of $78.8 million, though that included a $17 million noncash impairment on a minority-owned associate. Base OpEx declined 6.4% to $449.2 million, total OpEx fell 0.5% to $480 million, and group net revenue margin declined to 42% from 43.8 bps. Free cash flow was positive $52 million versus negative $239 million in 1H25, and senior leverage was just under 1x at 0.9x net debt to EBITDA. For FY26, Master Trust margin guidance was raised from 51-52 bps to 51.5-52.5 bps, Wrap margin guidance was reduced from 27.5-28.5 bps to 27-28 bps, corporate revenue guidance increased due to delayed white-label migrations, and cost guidance was unchanged. The company also said it expects FY26 funding requirements for remediation of $54 million, including repayment of $254 million of subordinated loan notes prior to May 2026, and expects closing FY26 leverage of around 1x net debt to EBITDA.

Scott Hartley framed the half as evidence that the 2030 strategy is gaining traction, pointing to stronger flows, better cost control, AI-enabled service improvements and continued simplification across the business. He said the company is making ‘solid progress’ toward becoming Australia’s leading and most efficient diversified wealth manager by 2030, while emphasizing execution, high-performance culture and ongoing net cost reduction. On the scheme, he reiterated the Board’s unanimous support for the $4.80-per-share CC Capital offer and described it as a ‘very good bid.’

David Chalmers highlighted the cleaner cost structure and cash profile, noting that base OpEx fell to $449.2 million, reinvestment OpEx was $30.8 million, and below-the-line UNPAT adjusted cash items dropped from $153 million to $15.9 million. He said free cash flow improved to positive $52 million, helped by the reduction in transformation and remediation spend, and that senior leverage was 0.9x net debt to EBITDA. He also outlined FY26 funding needs of $54 million for remediation and the $254 million subordinated loan note repayment, while saying cost guidance remains unchanged and reinvestment spending is expected to accelerate in the second half.

Analysts focused on the scheme process and whether there was any flexibility in the $4.80 offer price. Management said the timetable depends on finalizing the scheme booklet, ASIC/ASX and APRA processes, the independent expert report and court/shareholder approval, and added that there are no mechanisms in the scheme terms to change the price unless the deal runs beyond 12 months, in which case a special dividend could be possible if conditions are met. Another question covered the Master Trust roadmap and cost savings, and Scott said the company still expects $200 million of gross cost savings from Master Trust by 2030, roughly half of the overall gross savings targeted across the group.