Management and Loan Fee Revenue: $113.9 million, up 14% on the first half of 2025.
Normalized Net Profit After Tax (NPAT): $93.3 million, up 108% on the first half of 2025.
Earnings Per Share (EPS): $0.214, up 104% on the first half of 2025.
Performance Fee Revenue: $119 million, reflecting strong investment outcomes across a diverse range of strategies.
Management and Loan Fee Pre-Tax Profit: $44.3 million, up 6% on the first half of 2025 and up 37% on the second half of 2025.
Performance Fee Pre-Tax Profit: $82 million.
Other Income: $10.8 million, up 83% on the prior comparable half.
Funds Under Management (FUM): $21.4 billion, with record half of net flows of $1.4 billion.
Dividend: Fully franked interim dividend of $0.12 per share, double the $0.06 paid for the first half of 2025.
Capital Position: Approximately $290 million in capital, with $128 million in free cash and $133 million in invested seed capital; no drawn debt.
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Release Date: August 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
Record net flows of $1.4 billion in 1H26, with $900 million in Q2 alone, driven by strong demand from North American investors.
Normalized NPAT surged 108% to $93.3 million, with EPS up 104% to $0.214, reflecting robust earnings growth.
Management and loan fee revenue grew 14% to $113.9 million, supported by a 20% increase in average FUM and stable fee margins.
Performance fees remained strong at $119 million, with diversification across strategies enhancing earnings resilience.
Interim dividend doubled to $0.12 per share fully franked, with a payout ratio of 56%, and a strong balance sheet with $289 million in capital and no drawn debt.
Negative Points
Outflows of $500 million due to two institutional clients participating in the government's water buyback program, impacting net flows.
Loan management fees were lower in 1H26 due to reduced activity in late 2025, though activity is rebounding.
Employee and other expenses increased due to investments in offshore distribution, technology, and new premises, pressuring margins.
The $75 million share buyback was paused, with only $5 million completed, as the company prioritizes dividends and organic growth.
Key person risk with Phil King's retirement transition, managing 16% of FUM, though a committee structure is planned.
Q & A Highlights
Q : Can you provide details on the fundraising outlook for the balance of 2026, including the new Multi-Strategy Income Fund and other strategies? A : Brendan O'Connor (CEO & Managing Director) stated that the Multi-Strategy Income Fund will be an open-ended product with monthly applications and redemptions. The Regal Long Short strategy has seen strong momentum, with approximately $800 million in inflows year-to-date, tracking towards over $1 billion for the calendar year. Combined with other campaign-style raises, the company is well on track to achieve its $2 billion net flow target for calendar 2026.
Q : What is the plan for transitioning Phil King's portfolio responsibilities following his announced retirement, and will there be an external hire? A : Brendan O'Connor (CEO & Managing Director) explained that Phil King currently manages about 16% of the fund, primarily in longer-duration heritage products. Rather than a single replacement, the company is establishing a Regal Investment Committee to provide oversight on performance and governance across all strategies, effective by January 1, 2027. The company has clear internal succession plans for each strategy, with named leaders already in place, and will provide more details on the transition in the coming months.
Q : Why was the $75 million share buyback paused, and has the capital management framework changed? A : Brendan O'Connor (CEO & Managing Director) explained that the buyback was paused due to a combination of factors: the outbreak of the Iran war, a change in board leadership with Peter Yates coming on as chair, and the changing tax landscape regarding franking credits. The company has decided to prioritize steady growth in fully franked dividends over the buyback for the time being, while retaining flexibility to respond to changing conditions.
Q : How does the capital framework apply when considering M&A opportunities, especially when the company's own stock is trading at a low multiple? A : Ilana Stringer (CFO & Head of Strategy) stated that the capital framework doesn't change the analysis for acquisitions, which still considers capital availability, accretion, strategic benefits, and synergies. Brendan O'Connor (CEO & Managing Director) added that the company sees very accretive opportunities in organic growth, such as seeding the income multi-strat product, which they believe offers superior returns for shareholders compared to returning capital via buybacks.
Q : What are the ambitions for the Multi-Strategy Income Fund at launch, and what yield is being targeted? A : Brendan O'Connor (CEO & Managing Director) stated that the fund will launch next month, seeded directly off the company's balance sheet. The product targets a monthly income based on the RBA cash rate plus 350 basis points, which would currently put the yield at just under 8%. The company is building a pipeline of interest and will provide further updates at upcoming results announcements.
Q : How should we think about the incremental contribution of the Taurus Fund III fundraising to management fee rates in the second half? A : Ilana Stringer (CFO & Head of Strategy) stated that the total management fee and loan fee yield is expected to remain stable compared to the first half of 2026, potentially very slightly up, including the impact of the Taurus fundraising.
Q : Regarding loan management fees, was the rebound in establishment fees a comment on Q4 versus Q3 or the early start to the new financial year? A : Ilana Stringer (CFO & Head of Strategy) clarified that the rebound is related to the start of the new financial year. Activity-based fees were lower in the second half of 2025 compared to the first half, but activity has increased in the current half and is beginning to flow through to ongoing loan management fees.
Q : Can you confirm that all the appropriate internal people are in place for the new investment committee structure? A : Brendan O'Connor (CEO & Managing Director) confirmed that there are clear heads for each strategy, citing examples such as Ben McCallum and Jess Farr-Jones on emerging companies, Tim Elliott on resources, Jackson on small companies, and Mark Nathan and Daveeda on the broader Long Short product. The company will provide more clarity on the transition as it leads towards June 2027.