Q1 FY26 - Quarterly Update
| Stock | Af Legal Group Ltd (AFL.ASX) |
|---|---|
| Release Time | 13 Nov 2025, 9:14 a.m. |
| Price Sensitive | Yes |
AF Legal Group Ltd Q1 FY26 Quarterly Update
- Record revenue of $9.0 million, up 43% on prior year
- Average weekly revenue of $692k, a new high
- Normalised NPBT up 116% to $0.782 million
- Strong growth in lawyers and legal support teams
AF Legal Group Ltd has reported a strong Q1 FY26 performance, with record revenue of $9.0 million, up 43% or $2.7 million on the prior corresponding period (Q1 FY25 $6.3m), and up 14% on the prior quarter (Q4 FY25 $7.9 million). Average Weekly Revenue for Q1 at $692k per week also represents a new high. Revenue increases were experienced across all practice brands when compared to the prior quarter and the prior corresponding period. Contested Wills & Estates revenue is up 46% on the prior year, Family Law is up 31% on the prior year, whilst Criminal Law is currently non-comparable (acquired October 2024). Growth in Lawyers and Legal Support teams has been significant over the last year with Fee Earner numbers up around 50% year on year, with some coming from the second Armstrong Legal acquisition. This combined with a record high retention level is a key driver in the top-line growth. Normalised NPBT attributable to the owners of the AF Legal Group for Q1 FY26 was a profit of $0.782 million, up $0.420 million or 116% on the prior corresponding period (Q1 FY25 $0.362m) and represents 57% of the FY25 result of $1.382 million, a strong position just one quarter into FY26. Normalised NPBT attributable margin at 8.7% is strong relative to the company's short-medium term 10% margin aspiration, but it is noted that Q1 has a number of advantages which make it seasonally stronger than Q2 and Q3.
The company expects Q2 revenue to soften slightly on Q1 as late December sees a gradual wind down in activity leading up to Christmas and New Year holidays and the associated court closures, but it will remain well up on the prior corresponding period.
Q2 has started strongly with October and early November revenue building on Q1 levels. The company is now starting to benefit from the lagged effect of its improved capacity to attract and retain high quality lawyers.