ASX (ASX:ASX) reported first-half results for the six months ended 31 December 2025, highlighting solid operating revenue growth alongside higher costs tied to technology investment and its response to the ongoing ASIC Inquiry.
Managing Director and CEO Helen Lofthouse opened the briefing by addressing leadership changes, confirming she will step down in May. Lofthouse said a comprehensive process is underway to identify a new CEO, adding she and the board agreed it is the right time for new leadership as ASX enters its next phase.
First-half financial performance
Total expenses were AUD 264.3 million, up 20%. Excluding additional costs related to the ASIC inquiry, expense growth was 12.1% (or 7.8% excluding depreciation and amortization). The company’s EBITDA margin declined 180 basis points to 61.4%, primarily due to higher expenses, including the ASIC inquiry response.
The board declared a fully franked interim dividend of AUD 1.018 per share, reflecting a 75% payout of underlying NPAT—at the bottom of ASX’s updated payout range. Underlying return on equity was stable at 13.5%.
Business segment results: markets drove growth
Chief Financial Officer Andrew Tobin said the first-half revenue performance demonstrated “the quality of our portfolio of businesses,” with strength across markets, technology and data, and securities and payments.
- Listings: Revenue rose 1.4% to AUD 106.4 million. Annual listing fees increased 3.2% to AUD 57.3 million due to higher market capitalization as of May 2025, while initial listings revenue recognized in the half declined 3.2% to AUD 9.1 million and secondary raisings revenue fell 1.7% to AUD 34.3 million. Investment products and other listing fees rose 11.8% on ETF listings and growth in funds under management.
- Markets: Revenue increased 14.4% to AUD 192.7 million. Futures and OTC revenue rose 13.1% to AUD 142.9 million, supported by a 10.5% increase in futures and options-on-futures volumes. Cash market trading revenue climbed 24.6% to AUD 41.6 million on a 22.7% lift in on-market value traded; auctions traded value rose 19.2%. ASX’s share of on-market trading averaged 88%, unchanged. Equity options revenue declined 4.7% to AUD 8.2 million.
- Technology and data: Revenue rose 7.5% to AUD 142.9 million. Information services increased 8.6% to AUD 89.3 million, driven by demand for real-time display and non-display data. Technical services grew 5.7% to AUD 53.6 million, led by connectivity services.
- Securities and payments: Revenue increased 18.5% to AUD 160.8 million. Tobin noted issuer services and equity post-trade services operate under a new building block pricing model implemented 1 July 2025, with revenue reported net of over- or under-recovery. ASX accrued an AUD 7 million over-recovery rebate in the half. AustraClear revenue rose 14.4% to AUD 44.5 million, supported by a 13.2% increase in transaction volume and an 8.9% rise in issuance balances to AUD 3.2 trillion at 31 December.
ASX’s share of Simply, its property settlement joint venture, was an operating loss of AUD 4.4 million, improved from a AUD 5.3 million loss in the prior period. Tobin said uncertainty remains around the timing of interoperability between e-conveyancing platforms and ASX continues to review the strategic value of the investment.
ASIC Inquiry: governance changes, capital build, Accelerate reset
Lofthouse described the ASIC Inquiry Panel’s interim report (released in December) as a “critical inflection point” and said ASX accepted the report as “tough reading, but…fair.” She said ASX is prioritizing its stewardship responsibilities as operator of critical market infrastructure, acknowledging that customer and regulator confidence has been tested in recent years.
ASX outlined commitments it said it plans to deliver to ASIC by the end of February, ahead of the panel’s final report expected by the end of March. Key actions include:
- Clearing and settlement governance: A dedicated governance structure will be established for clearing and settlement. All ASX Limited directors have stepped down from the clearing and settlement facility boards, which now comprise only independent non-executive directors.
- Accelerate program reset: ASX is resetting its Accelerate program—focused on risk management, resilience, and sustainable operations—with updated workstream target states and an additional governance and independence workstream. ASX aims to agree the final plan with regulators by end of June.
- Additional capital: ASX will accumulate an additional AUD 150 million above current net tangible assets by 30 June 2027, expected to be funded by lower dividends for at least the next three dividends at a 75% payout of underlying NPAT, alongside a discounted dividend reinvestment plan (DRP).
Tobin said the company is introducing a 2.5% discount to its DRP and noted ASX has flexibility to partially underwrite the plan depending on participation rates. He added ASX holds available cash and short-term investments of more than AUD 200 million above the financial resource requirements for its licensed entities and retains an AA- long-term S&P rating.
Technology modernization milestones and project timing
Lofthouse emphasized progress on ASX’s technology modernization roadmap, including data, digital, observability platforms, and cloud services. She said the rollout of new network equipment to customer sites has commenced as part of the trading network infrastructure replacement project.
ASX also updated timing on major systems projects. The derivatives trading platform target go-live window was moved from late FY2027/early FY2028 to late FY2028.
For CHESS, ASX reiterated Release 1 remains targeted for April 2026, with production parallel testing underway. Release 2 work continues in parallel, with the first code release to the external industry test environment targeted for March. ASX said the primary build is targeted to complete by the end of 2027, with a targeted go-live in 2029 after industry testing and readiness activities.
ASX also confirmed Group Executive of Securities and Payments Clive Triance will retire at the end of February, with Andrew Jones (currently General Manager of Equities) appointed interim Group Executive.
Outlook and guidance
ASX said listings activity improved in the half, citing 62 new listings, including the IPO of BMC Minerals and dual listings such as Channel Infrastructure and Ryman Healthcare. Lofthouse said ASX has received 45 submissions in its listing rules review regarding shareholder approval for dilutive acquisitions and the admission status of dual-listed entities, with an update expected later in the half.
In markets, Lofthouse said January cash market value traded was up 47% year-over-year, citing volatility tied to geopolitics and central bank expectations, and strong passive manager flows supporting auction activity. Futures and options-on-futures volumes in January were up 31% from the prior period.
On guidance, ASX reiterated FY26 total expense growth is expected to be 20%–23%, including ASIC inquiry response costs, which management expects to be at the upper end of its AUD 25 million–AUD 35 million range (now including expected commitments plan costs). Excluding ASIC-related costs, total expense growth is guided at 13%–15%. FY26 capex is expected to be AUD 170 million–AUD 180 million, and FY27 capex AUD 160 million–AUD 180 million.
Given the CEO transition, ASX said it will no longer hold an investor forum in June and instead plans to provide FY27 total expense growth guidance and FY28 capex guidance by the end of the financial year. The company reaffirmed its medium-term underlying ROE target range of 12.5%–14%.
About ASX (ASX:ASX)
ASX Limited operates as a multi-asset class and integrated exchange company in Australia and internationally. The company provides education programs, research and insights, investor access and peer group networking; distribution facility for quoted exchange traded funds (ETFs) and debt securities. It is also involved in the trading of futures and options on interest rate, equity index, agriculture and energy products, and options over individual securities; cash market trading of equities, warrants, exchange-traded funds, and debt securities; and clearing of exchange-traded derivatives and over-the-counter interest rate and equity derivatives.
