Navigator Global Investments Ltd (ASX:NGI) (Q1 2026) Earnings Call Highlights: Strong Revenue …

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Mon, February 23, 2026 at 2:01 PM GMT+9 5 min read

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**Assets Under Management (AUM):** Partner firms manage over $79 billion, up 5% in USD and 12% in AUD during the half.

**Ownership Adjusted AUM:** Increased 3% to USD 27.1 billion, representing an 11% increase in local currency.

**Revenue:** First half revenue up 28% to USD 92.3 million.

**Adjusted EBITDA:** Increased 16% to USD 41.4 million.

**Performance Fees:** Lighthouse generated $37 million in performance fees for the year, with $31.7 million crystallized in the first half.

**Underlying Revenue Growth:** 30% increase in 2024, with a 10% compound annual growth rate over the last three years.

**Management Fee Revenue:** Average management fees account for 60% of total revenue, with no fee compression observed.

**Adjusted EBITDA Contribution:** Lighthouse contributed $26.4 million, up 74% from the prior period.

**NGI Strategic Investments Contribution:** Contributed $14.7 million to adjusted EBITDA.

**Distributions Received Post-Reporting:** Over $10 million in additional distributions received after December 31.

**Statutory EBITDA and NPAT Growth:** Strong growth due to fair value gains on investments.

**Management Fee Rate:** NGI Strategic's average management fee rate steady at 1.2% per annum.

**Performance Fee Rate:** Average performance fee rate of 17% for NGI Strategic, with 79% of AUM able to earn performance fees.

**Lighthouse Management Fee:** Average management fee held steady at 54 basis points.

**Cash Flow and Credit Facility:** Strong cash generation with a $100 million credit facility available.

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Release Date: February 22, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Navigator Global Investments Ltd (ASX:NGI) reported a 28% increase in first-half revenue to USD92.3 million, driven by strong investment performance and increased performance fees.

The company's adjusted EBITDA rose by 16% to USD41.4 million, showcasing robust financial health.

NGI's ownership adjusted AUM increased by 3% to USD27.1 billion, reflecting an 11% increase in local currency.

Lighthouse, a key business unit, contributed significantly to performance fee revenues, generating USD37 million for the year.

The company maintains a strong balance sheet with a largely undrawn USD100 million credit facility, providing flexibility for future growth opportunities.

Negative Points

The NGI strategic segment's contribution to adjusted EBITDA was lower due to the timing of cash distributions, which can vary year to year.

There is a reliance on the timing of revenue receipts and market conditions, which introduces variability in earnings projections.

The company's growth strategy is heavily dependent on acquiring new partner firms, which can be competitive and uncertain.

Performance fees, while strong, are subject to market volatility and investor sentiment, which can fluctuate.

The strategic segment's profit distribution is influenced by the performance of individual partner firms, which can lead to inconsistent contributions.

 






Story Continues  

Q & A Highlights

Q: Steven, can you elaborate on the net flow outlook for 2025 and the factors contributing to your confidence in improved performance? A: The confidence is partly due to strong investment performance, which typically leads to increased investor appetite. Additionally, the current environment of volatility and risk is conducive to our strategies. We also have new product launches and positive investor interest, which we believe will result in net inflows. Furthermore, the redemption pipeline at Lighthouse is at its lowest in years, indicating strong retention and potential for growth.

Q: Ross, can you provide insights into the current pipeline of potential acquisitions and your confidence in executing new deals? A: The pipeline is very active, with a focus on firms that offer diversification, particularly in private equity and private credit. We are confident in our ability to execute deals, as we are spending quality time with promising firms. However, the competitive landscape means we must be prudent and patient in forming strategic partnerships.

Q: Amber, regarding Lighthouse’s performance fees, how sustainable are they, and how should we model them going forward? A: The percentage of AUM subject to performance fees has increased, primarily due to the growth of the North Rock fund and the launch of the Mission Crest product. Historically, this percentage was lower, around 12-14%. The growth in hedge fund AUM is driving up the percentage subject to performance fees, indicating potential for sustained performance fee revenue.

Q: Tim, can you clarify the fee structure for Mission Crest and its impact on performance fees? A: Mission Crest has a unique fee structure with no base fee, relying solely on performance fees. North Rock, on the other hand, has a minimum performance fee structure. The growth in these products has contributed significantly to the increase in performance fees.

Q: Can you provide an update on Marble and Invictus, particularly regarding their fundraising and performance? A: Both Marble and Invictus have nearly doubled their AUM since our investment, driven by successful fundraising cycles. They are entering new fundraising cycles, which we expect will lead to further growth. Their earnings profiles are attractive, with scaled management fee margins and potential for increased profit distributions.

Q: Regarding the strategic segment, why is there variability in profit distributions, and how does it affect guidance? A: The variability is due to the timing of distributions and decisions made at the manager level. While we are confident in the performance and expect higher earnings than last year, the exact timing and amount of distributions can vary, making it challenging to provide specific guidance.

Q: Can you discuss the potential impact of the Fortress partnership on Navigator’s strategy? A: The partnership with Fortress is an exciting initiative, leveraging their investment expertise and our distribution capabilities. While it’s too early to determine the financial impact, it represents a strategic opportunity to enhance our offerings and potentially improve margins through a new joint venture.

Q: How does the seasonality of performance fees affect Lighthouse’s earnings, and what should we expect going forward? A: Most of Lighthouse’s performance fees crystallize in December, with some potential for additional fees in the second half from products like Mission Crest. While last year’s even distribution was unusual, we expect the first half to typically generate more performance fees.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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