In its FY26 Results Presentation delivered to investors on 17 August 2026, L1 Group outlined a 97% increase in Underlying Net Profit After Tax to $188.8m for the year ended 30 June 2026, its first full-year result covering the merged L1 Capital and Platinum group. Management framed the outcome as evidence of significant business momentum heading into FY27.
The result marks the first financial year-end since the L1 Capital / Platinum merger completed on 1 October 2025. Group Funds Under Management (FUM) closed the period at $19.1b, with Total Revenue of $385.9m and Underlying EBITDA of $287.4m, representing a 74.5% margin. The average management fee stood at 1.03%.
The Board declared a fully franked dividend of 3.0 cents per share for FY26, including 2.0 cents for the second half. Management told investors the group entered FY27 with continued operating momentum.
FY26 financial results at a glance
The headline metrics illustrate positive operating leverage, with both EBITDA and Underlying NPAT growing faster than revenue as synergy realisation reduced the cost base. Total Revenue rose 49% versus pro-forma FY25.
Importantly, the result included a one-off $79.3m performance fee from the closure of the unlisted L1 Wholesale Gold Fund. This item is not recurring. L1G shareholders will, however, be entitled to 100% of any future performance fees earned from the L1 Gold Fund (ASX:LGF) per the terms of the LGF PDS.
The L1 Gold Fund IPO raised approximately $900 million in commitments earlier in the year, with founders Mark Landau and Raphael Lamm committing a minimum of $120 million of personal capital directly into LGF, structuring the vehicle to deliver L1G shareholders 100% of future performance fees earned by the fund.
| Metric | FY26 | FY25 (pro-forma) | Change |
|---|---|---|---|
| Total Revenue | $385.9m | $259.0m | +49% |
| Underlying EBITDA | $287.4m | $142.4m | +102% |
| Underlying NPAT | $188.8m | $96.1m | +97% |
| EBITDA margin | 74.5% | 55.0% | – |
| Dividend (fully franked) | 3.0c | – | – |
Secondary detail from the presentation included:
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2H26 NPAT up 20.9% versus 2H25
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2H26 EBITDA margin of 79.9%
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Management fee margin of 1.03% (annualised)
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Funds under management climbs ~17% as flows improve each quarter
Group FUM rose approximately 17% in FY26 to $19.1b. The presentation detailed an improving flow trajectory, with quarterly net client flows strengthening in each successive quarter.
The quarterly progression was as follows:
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Q1: −$1,593m (pre-merger)
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Q2: +$45m
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Q3: +$108m
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Q4: +$549m
L1 Capital and its Affiliates now manage approximately 73% of group FUM, up from 55% at 1 October 2025. Management noted L1 Capital funds attracted $2,531m in net inflows during the year alongside strong investment outperformance.
Platinum outflows moderated over the period. The presentation attributed this to improving Platinum Asia performance and the absorption of Platinum International funds into L1 International, previously the largest source of outflows.
Merger synergies lifted — target raised to circa $43m
Management described the integration as nearing completion, with $31.7m of cost synergies realised to 30 June 2026. The target for cost synergies was increased from $35m to circa $43m, expected to be realised before March 2027.
Incremental synergy savings are expected to fund ongoing investment in the group during FY27. On this basis, FY27 operating expenses were estimated at approximately $95m, stated before any incremental spend on new strategies or additional investment teams.
What drives an asset manager’s earnings
The $79.3m Gold performance fee illustrates that lumpiness clearly. To support more predictable performance fee generation from the long short strategies, L1G applies an “in-perimeter” catch-up mechanism, which carries forward unearned fee potential to the following performance period when a threshold is missed.
Standout investment performance across the group
The presentation showcased FY26 strategy returns, several of which materially exceeded their benchmarks. Past performance is not a reliable indicator of future returns.
| Strategy | FY26 Return | Benchmark |
|---|---|---|
| L1 Long Short | 45.4% | ASX200AI 6.1% |
| L1 Global Long Short | 57.8% | MSCI World 21.3% |
| L1 Gold | 83.2% | – |
| L1 Catalyst | 38.3% | ASX200AI 6.1% |
According to Morningstar, as at 30 June 2026, L1 Catalyst ranked #1 of 92 Australian large-cap long-only equity funds since its inception.
Group Aspiration
Management, led by CEO and Managing Director Julian Russell, reiterated the group’s aspiration to build the best listed investment management business in the Australian market.
Balance sheet firepower and growth roadmap
The presentation detailed a balance sheet of approximately $635m at 30 June 2026, comprising cash of $176.2m and seed investments of $458.9m. Management positioned this as providing strategic flexibility.
The group outlined three intended uses for the capital: seeding and distributing new strategies, de-risking capital raisings through alignment, and generating income from new strategies plus potential seed gains.
For FY27 and beyond, management outlined several growth levers:
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Organic growth via flows and performance, with Global Long Short seen as the single largest driver in the near to medium term
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New products, including the PXC Advisors JV (announced July 2026), an L1 Capital Australian Small Caps strategy commencing early November 2026, and a further strategy already seeded for a 2H27 launch
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Distribution expansion, with North America and EMEA teams in place from late 2H26 (limited flows expected initially, ramping over time), led by a NYC-based Head of Partnerships
The North America and EMEA distribution hires announced in June 2026 included Dan Riggs, who spent more than 15 years raising institutional capital at Brevan Howard, leading EMEA from London, and Chris Ashman, formerly of Barry Sternlicht’s family office, covering North American partnerships from New York.
- M&A optionality, with highly selective deployment of balance sheet capital into accretive situations
FY27 outlook
Management presented its FY27 expectations as subject to market conditions and fund performance rather than guarantees. FUM was framed as entering a stabilisation period, with moderate growth expected and Platinum outflows anticipated to be offset by L1 Capital growth.
On revenue, ASX:GLS management fee contribution is expected to commence from 28 November 2026 following the fee holiday, with a medium-term run-rate of approximately $14m. Management fee margins were expected to dip modestly below 100bps in 1H27 as a result.
FY27 operating expenses were estimated at approximately $95m. On capital management, the stated intent is to pay out a high proportion of underlying operating earnings as fully franked dividends over time, subject to capital requirements and availability.
The presentation noted that L1 Catalyst returned circa $380m of FUM to an Industry Super fund, flagged as having an immaterial revenue and earnings impact while freeing up capacity. Management closed by restating its aspiration to build the best listed investment management business in the Australian market.
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