N1 Holdings Ltd. (N1H) AI Stock Analysis

• Market Cap: AU$10.13M
• Dividend Yield: 2.61%
• Average Volume (3M): 37.57K
• Price to Earnings (P/E): 11.9
• Beta (1Y): -2.65
• Revenue Growth: 8.15%
• EPS Growth: -21.14%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): <0.01
• Shares Outstanding: 88,055,570
• 10 Day Avg. Volume: 11,064
• 30 Day Avg. Volume: 37,566
• PEG Ratio: -0.56
• Price to Book (P/B): 4.53
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -7.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: AU$0.12 ▼(-3.33% Downside)

N1 Holdings Ltd. faces significant financial risks due to high leverage and weak cash flow metrics, which heavily impact its overall score. While technical indicators show some positive momentum, they are not strong enough to outweigh the financial concerns. The stock's valuation is reasonable, but the dividend yield is not sufficient to mitigate the financial risks. Overall, the stock presents a moderate risk profile with limited upside potential.

Positive Factors

Very high gross profit margins

Sustained gross margins above 90% indicate structural cost efficiency or pricing power in core mortgage-related operations. High gross margins provide a durable buffer to absorb SG&A or credit cost increases and support long-term profitability even if net margins fluctuate.

Reported positive revenue growth

A reported ~8% revenue growth metric supports the view of expanding origination, servicing fees, or related mortgage revenues. Durable top-line growth, if maintained, enables scale, better fixed cost absorption and long-term earnings recovery despite near-term margin pressure.

Mortgage industry exposure

Operating in the mortgage finance sector provides exposure to a large, structural market tied to housing demand and credit cycles. This industry position can generate steady fee and interest income over time, offering a foundation for revenue diversification and scaled lending businesses.

Negative Factors

High financial leverage

A debt-to-equity ratio above 50% signals meaningful leverage that raises interest expense sensitivity and solvency risk. Over a multi-month horizon, high leverage constrains strategic flexibility, limits ability to invest organically, and increases refinancing risk if cash flows weaken.

Severe free cash flow deterioration

A ~-140% drop in free cash flow and negative operating cash flow-to-net-income indicate poor cash conversion. Persistently weak cash generation undermines debt servicing, restricts reinvestment, and raises the probability of funding shortfalls or distress over the coming months.

Declining net profit margins

A sustained decline in net margins reduces retained earnings and resilience to credit or interest-rate shocks. Margin compression over multiple periods suggests rising operating or funding costs relative to revenue, threatening long-term earnings power and capital accumulation.

N1 Holdings Ltd. Business Overview & Revenue Model

Company Description

N1 Holdings Limited provides mortgage broking services to customers in Australia. It offers home loans, including purchase and refinance; short term business loans for SME's; commercial lending products and services; car loan and equipment finance services; business lending services; and commercial and residential property loans, as well as off-market lending services. The company also provides trustee services, such as information memorandum production, offer documents production, custody services, and fund administration and accounting services. In addition, it offers migration and education consultation services under the N1 Migration name; and fund management services under the N1 Venture name; and financial advisory services; and rental property management and property sales agent services. The company was founded in 2011 and is based in Sydney, Australia.

How the Company Makes Money

N1 Holdings Ltd. generates revenue through multiple channels. In the real estate sector, the company earns income from rental properties and property sales, capitalizing on market demand and strategic developments. In technology, N1H offers software solutions and consulting services, creating a recurring revenue stream through subscriptions and service agreements. Additionally, the healthcare segment contributes to the company's earnings by providing specialized technology and services that enhance patient care and operational efficiency in medical facilities. Significant partnerships with industry leaders and government contracts further bolster N1H's revenue, enabling the company to expand its market reach and drive sustainable growth.

N1 Holdings Ltd. Financial Statement Overview

Summary

N1 Holdings Ltd. has strong gross profit margins but faces declining net profit margins and negative revenue growth, indicating potential profitability issues. The balance sheet shows high leverage, posing financial risks, and cash flow metrics are weak, highlighting liquidity challenges.

Income Statement

N1 Holdings Ltd. shows strong gross profit margins consistently above 90%, indicating efficient cost management. However, the net profit margin has declined from 5.85% in 2024 to 4.26% in 2025, reflecting reduced profitability. Revenue growth has also been negative in the latest period, which is a concern for future earnings potential.

Balance Sheet

The company has a high debt-to-equity ratio of 55.14, suggesting significant leverage and potential financial risk. The equity ratio is low, indicating limited shareholder equity relative to total assets. These factors point to a weak balance sheet with potential solvency concerns.

Cash Flow

N1 Holdings Ltd. has experienced a significant decline in free cash flow growth, with a negative growth rate of -139.71% in 2025. The operating cash flow to net income ratio is negative, indicating challenges in converting earnings into cash. These factors highlight cash flow instability and potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.07M	20.07M	18.55M	14.09M	10.63M	5.42M
Gross Profit	19.15M	19.15M	17.43M	12.38M	9.17M	3.93M
EBITDA	14.03M	14.03M	13.26M	0.00	5.81M	1.48M
Net Income	855.83K	855.83K	1.09M	340.94K	1.10M	139.57K
Balance Sheet
Total Assets	130.41M	130.41M	114.62M	90.22M	79.44M	15.54M
Cash, Cash Equivalents and Short-Term Investments	11.32M	11.32M	13.53M	7.08M	14.14M	3.58M
Total Debt	123.64M	123.64M	108.09M	85.02M	75.30M	15.43M
Total Liabilities	128.17M	128.17M	112.93M	89.63M	79.28M	17.01M
Stockholders Equity	2.24M	2.24M	1.69M	591.66K	624.74K	-1.48M
Cash Flow
Free Cash Flow	-1.40M	-1.40M	7.37M	-6.15M	11.84M	1.09M
Operating Cash Flow	-1.34M	-1.34M	7.38M	-6.06M	11.85M	1.20M
Investing Cash Flow	-312.23K	-312.23K	70.99K	526.06K	213.32K	-66.26K
Financing Cash Flow	-537.24K	-560.77K	-940.30K	-1.59M	-1.14M	-702.82K

N1 Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:N1H, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:N1H.

N1 Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FID	69 Neutral	AU$368.08M	19.79	32.31%	4.00%	10.61%	23.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SEQ	67 Neutral	AU$35.55M	11.20	6.14%	14.29%	-0.40%	―
WTL	61 Neutral	AU$51.33M	11.03	15.13%	5.00%	16.64%	19.30%
N1H	52 Neutral	AU$10.13M	11.86	43.56%	2.61%	8.15%	-21.14%
AFG	52 Neutral	AU$597.87M	17.03	16.81%	4.21%	14.37%	20.75%
KBC	43 Neutral	AU$9.72M	―	―	―	―	―

N1 Holdings Ltd. Corporate Events

N1 Holdings Secures Shareholder Approval for 2025 AGM Resolutions

N1 Holdings Limited announced that all resolutions proposed at its 2025 Annual General Meeting were successfully passed. This outcome reflects strong shareholder support for the company’s strategic direction and governance, potentially enhancing its position in the evolving debt market landscape. The approval of these resolutions, including the adoption of the remuneration report and the re-election of a director, underscores the confidence stakeholders have in N1 Holdings’ leadership and future growth prospects.

N1 Holdings Expands Funding Capacity and Launches New Mortgage Fund

N1 Holdings Limited has expanded its funding capacity to over $380 million through a major refinance and the launch of a new mortgage fund, the One Alternative Credit Fund, with $50 million in committed capital. These initiatives have reduced the company’s cost of funds and enhanced its flexibility, allowing it to support a broader range of property-backed and income-generating opportunities. The expanded capital base and flexible lending policy enable N1H to capture greater market share in the growing private credit sector, demonstrating strong investor confidence and positioning the company for strategic growth.

N1 Holdings Reports Stable Q1 FY26 Performance Amid Strategic Growth Initiatives

N1 Holdings Limited reported a stable performance in the September 2025 quarter, with a net profit of approximately $375,000 and revenue of $4.98 million. The company focused on enhancing competitiveness by securing improved funding terms and cost efficiencies, while its AI-driven platforms boosted processing efficiency and scalability. The SME lending business remained the primary revenue generator, accounting for 91% of total cash receipts. N1 Holdings continues to strengthen its market position by deepening relationships with mortgage brokers and referral partners, and maintaining strict lending principles, focusing on established Australian properties.

N1 Holdings Schedules 2025 Annual General Meeting

N1 Holdings Limited has announced the details for its 2025 Annual General Meeting, which will take place on November 21, 2025, at Sundaraj & Ker in Sydney. Shareholders are encouraged to participate in the meeting, as it will affect their shareholding, and they have the option to vote by proxy through various methods provided by the company.