• Strong financial result with 63% underlying profit growth in 1H26
• Synergies on track with $24.8m in annualised run-rate cost synergies realised
• Positive FUM trends with L1 Long Short strategies up $2.6bn and successful launch of Global Long Short Fund

L1 Group (ASX: L1G) reported a strong financial result for the six months ended 31 December 2025, with a 63% increase in underlying profit driven by revenue growth and early realisation of synergies from the merger with Platinum Asset Management. The company achieved $145m in underlying revenue, $95m in underlying EBITDA, and $66m in underlying net profit after tax. L1G also declared an interim dividend of 1.0 cent per share, fully franked. The company has made significant progress on its synergy realisation, with $24.8m in annualised run-rate cost synergies achieved as of December 2025, putting it on track to meet its $30-35m target within 18 months of the merger completion. L1G expects a further $10m in synergy benefits to be realised in FY27.L1G reported positive FUM trends, with its L1 Long Short strategies seeing a $2.6bn increase in FUM over the six-month period. The company also successfully launched its new Global Long Short Fund (GLSF) strategy, which has already attracted around $1bn in FUM. Additionally, the Platinum International Fund was transitioned to the L1 International Fund, and L1G expects Platinum's FUM to stabilise within 15 months.The company's investment performance has been exceptional, with the L1 Long Short Fund, Global Long Short Fund, and L1 Gold Fund all delivering strong double-digit returns over the past 12 months. L1G's balance sheet remains robust, with around $550m in cash and seed investments, providing flexibility to drive organic and inorganic growth opportunities.Looking ahead, L1G is well-positioned to deliver continued growth, with a focus on growing existing funds through performance and flows, launching new funds and affiliates, and pursuing bolt-on acquisitions. The company expects its FY26 earnings to have a strong H1 skew due to the full LSF in-perimeter performance fees achieved in the first half.

L1G expects moderate FUM growth, subject to market conditions and fund performance, with Platinum outflows expected to be offset by L1 Capital FUM growth. The company has realised $24.8m in annualised run-rate cost synergies as of December 2025, with a target of $30-35m in total synergies. L1G's estimated cost base is expected to be around $100m in FY26 and $95m in FY27. The company expects management fee margins to dip modestly below 100bps in 2H26/1H27 due to the 12-month fee holiday for the GLS.ASX LIC, before recovering thereafter.

L1G is strongly positioned to deliver continued growth for its shareholders, subject to market conditions and fund performance. The company's growth pathways include growing existing funds through performance and flows, acquiring existing investment managers, forming joint ventures to launch new products, and extending strategies from its existing investment team. L1G expects to identify further areas of synergy and sees potential for incremental performance fees from its in-perimeter and broader strategies, both new and existing, in the medium term.