• Underlying trading performance ahead of prior corresponding period
• Reached settlement on Libertas Financial Planning advice matter
• Expects to recognize non-cash impairments and provisions in 1HFY26

Sequoia Financial Group Ltd (ASX: SEQ) has provided a market update outlining the Group's current underlying operating performance and the outcome of the Board addressing various material matters. Despite challenging conditions, particularly in the Licensee and Adviser Services Division, the Group continues to perform ahead of the prior corresponding period at the EBITDA (operating profit) level. The unaudited EBITDA YTD November shows an increase of approximately 15% on the prior corresponding period, with the Legal and Administration Services division and the Licensee and Adviser Services division both reporting improved EBITDA. The Company expects underlying 1HFY26 EBITDA to be ahead of 1HFY25, driven primarily by the strong growth in the technology-enabled Legal and Administration Services Division and improved performance in the salaried advice business. Sequoia has now reached a final settlement with the receiver in relation to a 2019 advice matter associated with the (now closed) Libertas Financial Planning business, which will be recognized as a non-operating expense in 1HFY26. To mitigate any potentially similar legacy exposures, the Group has implemented enhanced risk management, compliance monitoring, and adviser supervision frameworks across its Licensee and Advisor Services Division. As part of the Group's disciplined and conservative approach to balance sheet management, Sequoia expects to recognize several non-cash impairments and provisions in 1HFY26, including a provision for potential claims under the insurance excess payable under its professional indemnity insurance and impairment of intangible assets pertaining to the Licensee and Adviser Services Division. Additionally, a non-cash impairment associated with the contractual 'rise and fall' adjustments from the sale of the General Insurance businesses will be recognized in the half-year accounts as a non-operating expense. The Group's recently announced APAC strategy is already gathering significant momentum, particularly across its Corporate Finance and Salary Advice businesses, representing a meaningful long-term growth opportunity to help offset structural challenges in the domestic Licensee and Adviser Services Division.

The Group's recently announced APAC strategy is already gathering significant momentum, particularly across our Corporate Finance and Salary Advice businesses. This initiative represents a meaningful long-term growth opportunity that will help offset structural challenges in our domestic Licensee and Adviser Services Division.