Highlights

  • AF Legal Group posts Q1 FY26 revenue of AUD 9.0m, up 43% on pcp.
  • Normalised NPBT increases 116% to AUD 0.782m, representing 8.7% of total revenue.
  • Growth driven by higher lawyer headcount and performance across all practice areas.

AF Legal Group Limited (ASX:AFL) reported record group revenue of AUD 9.0 million for the first quarter of FY26, an increase of AUD 2.7 million or 43% compared with the prior corresponding period (pcp) of AUD 6.3 million in Q1 FY25. Revenue also rose by AUD 1.1 million or 14% from the prior quarter (Q4 FY25: AUD 7.9 million).

Average Weekly Revenue (AWR) for Q1 FY26 reached AUD 692,000 per week, marking a new high for the group. Revenue growth was recorded across all practice brands compared to both the prior quarter and pcp. Contested Wills & Estates revenue increased 46% year-on-year, Family Law revenue rose 31%, while Criminal Law was non-comparable following its acquisition in October 2024.

Expanding Workforce and Operational Momentum

The company noted a significant expansion in its legal workforce over the past year, with fee earner numbers rising approximately 50% year-on-year. This increase included personnel from the second Armstrong Legal acquisition. Retention levels also reached record highs during the quarter.

Seven new lawyers joined during Q1 FY26, five of whom were Senior Associates or above. These additions were active for around 60% of the quarter and are expected to contribute further in future periods as workloads stabilise.

Profitability and Margin Outlook

Normalised Net Profit Before Tax (NPBT) attributable to AF Legal Group owners was AUD 0.782 million for Q1 FY26, up AUD 0.420 million or 116% from Q1 FY25 (AUD 0.362 million). This represents 57% of the company’s total FY25 result of AUD 1.382 million after just one quarter of FY26.

The normalised NPBT margin of 8.7% aligns with the company’s short- to medium-term target of approximately 10%. Q1 historically benefits from limited public holidays, resulting in higher activity levels compared with Q2 and Q3.

Normalisation costs for the quarter totalled AUD 299,000, relating to Project Titan expenditures previously flagged by the company. Project Titan remains within budget and on track for delivery in FY26.

Business Update and Outlook

AF Legal Group indicated that Q2 FY26 began positively, with October and early November revenue building on Q1 levels. The group expects some softening in activity later in December due to seasonal court closures and holiday impacts but anticipates Q2 performance to remain ahead of the pcp.

Share Performance of AFL

AFL was trading 23.07% higher at AUD 0.160 per share as of 13 November 2025 at the time of writing.