N1 Holdings Posts $4.98M Revenue and $19.5M Cash in Q1 FY26
N1 Holdings reports a steady start to FY26 with a $375,000 net profit and robust cash flow, driven by its SME lending operations and enhanced by AI technology.
- Net profit of approximately $375,000 for Q1 FY26
- Revenue of $4.98 million, primarily from SME lending
- Strong net operating cash inflow of $8.919 million
- Cash balance reaches $19.543 million at quarter end
- AI-driven platforms improve loan processing and portfolio scalability
Stable Market Backdrop and Strategic Focus
N1 Holdings Limited (ASX – N1H) has delivered a solid performance in the first quarter of FY26, navigating a stable private lending market buoyed by improving economic sentiment and expectations of gradual interest rate normalization. The company’s adherence to conservative lending principles; focusing exclusively on established Australian properties and avoiding construction lending; continues to underpin its risk management approach.
Financial Highlights and Cash Flow Strength
For the quarter ended 30 September 2025, N1 Holdings reported an unaudited net profit of approximately $375,000 and EBITDA of $406,000. Revenue stood at $4.98 million, with the SME lending business, including management fees from the One Lending Fund, accounting for the lion’s share of cash receipts; 91% or $2.09 million. Notably, the company achieved a robust net cash inflow from operating activities of $8.919 million, bolstering its cash reserves to $19.543 million by quarter’s end.
Operational Advances and Technology Integration
Management has been proactive in securing improved funding terms and cost efficiencies to maintain competitiveness amid potential interest rate shifts. The company deepened its engagement with mortgage brokers, referral partners, and aggregators, expanding its distribution channels. Meanwhile, N1’s AI-powered platforms have enhanced loan processing efficiency and portfolio scalability, supporting consistent loan growth and reinforcing transaction quality.
Funding Capacity and Regulatory Compliance
N1 Holdings manages a total lending capacity of approximately $340 million, comprising $41 million in balance sheet capital, $275 million in debt facilities, and $24 million from the One Lending Fund mortgage funds under management. The company welcomes ongoing regulatory oversight, as highlighted by the recent ASIC report on private credit, and remains committed to high standards of governance and transparency.
Looking Ahead
With a strong cash position and a clear strategic focus on operational efficiency and funding optimization, N1 Holdings is well-positioned to navigate the evolving private credit landscape. The company’s conservative asset selection and technology-driven approach may provide resilience as market conditions and interest rates continue to evolve.
Bottom Line?
N1 Holdings’ disciplined strategy and strong cash flow set the stage for navigating upcoming market shifts with confidence.
Questions in the middle?
- How will potential interest rate changes impact N1’s funding costs and lending margins?
- What are the growth prospects for the One Lending Fund and its contribution to overall revenue?
- How might increased regulatory scrutiny shape N1’s operational and compliance strategies going forward?
