Fund Manager Summary
The fund managers believe that Nuix Ltd presents a compelling investment opportunity despite recent share price declines. In their opinion, the company’s AI-enhanced software is poised for commercialization, which could drive future growth. While the FY25 revenue growth is expected to be lower than previously anticipated due to an extended sales cycle, they consider such delays typical in software transitions. The fund managers have increased their position in Nuix, viewing the current share price of approximately $4.49 as significantly undervalued. They highlight the company’s capital-light growth and recurring revenue model as strong indicators of its potential, positioning Nuix as one of the strongest AI exposures on the ASX.
Source: Trading View
Commentary From The Managers
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QVG Capital
5 Nov 2025
$2.21
Summary
- QVG Capital continues to hold its position in Nuix Ltd despite recent challenges.
- The market reacted negatively to the CEO departure, impacting returns.
- Such sudden management changes are often seen as precursors to negative news.
- The market's forward-looking nature means it anticipates potential issues ahead.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
QVG Capital
5 Nov 2025
$2.21
- QVG Capital continues to hold its position in Nuix Ltd despite recent challenges.
- The market reacted negatively to the CEO departure, impacting returns.
- Such sudden management changes are often seen as precursors to negative news.
- The market's forward-looking nature means it anticipates potential issues ahead.
Summary
Yarra Capital Management
6 June 2025
$2.30
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Summary
Datt Capital
6 June 2025
$2.30
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Summary
Blackwattle Investment Partners
30 Apr 2025
$2.43
- Blackwattle Investment Partners notes a 20.8% decline in Nuix's stock over the month.
- The company anticipates FY25 revenues will be at the lower end of its growth target of 11%-16%.
- This adjustment reflects a small change from the previously set target of 15% growth in August 2024.
- There is uncertainty regarding Nuix’s sales team’s ability to monetize the new Nuix NEO product in the current economic climate.
- Nuix’s revenue base is described as defensive, with attributes like sticky and low churn, largely recurring.
- Despite these defensive characteristics, the market is currently not valuing them appropriately.
- Blackwattle Investment Partners continues to hold its position in Nuix, reflecting ongoing confidence in the long-term potential.
Summary
ECP Asset Management
30 Apr 2025
$2.43
- Nuix (NXL) underperformed this month.
- ECP Asset Management notes a change in annual contract value (ACV) guidance from ~15% to a range of 11%-16% for the full year.
- EBITDA Jaws were re-affirmed, indicating operating cost growth will be below revenue growth.
- The company was free cash flow (FCF) positive during the half and is expected to remain FCF positive at the fiscal year-end.
- ECP Asset Management continues to hold because of the positive FCF outlook and reaffirmed guidance.
Summary
Longwave Capital
28 Feb 2025
$3.68
- Longwave Capital is updating their investment thesis on Nuix Ltd.
- Nuix has similarities to a high quality but relatively mature business.
- Contrastingly, Nuix offers new products (NEO) that are expected to expand margins on the existing customer base.
- These new products also present a potentially large addressable market.
- Successful execution will necessitate patience and hard work.
- Recent delays led to a sell-off of over 20% in their stock.
- Longwave Capital continues to hold because they believe in the long-term potential of Nuix.
Summary
Blackwattle Investment Partners
31 Jan 2025
$4.49
- Nuix is an Australian technology company specializing in software for investigating and analyzing large data sets.
- It was the fund's top performer in 2024, despite a recent share price decline of -29.0% in January.
- The decline followed lower than expected FY25 revenue growth due to an extended sales cycle.
- Nuix is launching an AI-enhanced version of its software at a significant price premium.
- Conversion delays in software sales are common, requiring time to showcase new feature value.
- With the share price retracing significantly, Blackwattle Investment Partners has increased its position, noting compelling value as commercialization nears.
- Nuix's capital-light growth and recurring revenue model reinforce its status as a strong AI exposure on the ASX.
Summary
Sandon Capital
31 Jan 2025
$4.49
- Sandon Capital updates its investment thesis on Nuix Ltd.
- NXL reported a soft trading update with 1HFY25 Annualised Contract Value (ACV) growth of 8-9%, which is below market expectations.
- FY25 ACV growth is now anticipated to be 11-16%, down from previous estimates of approximately 15%.
- The increasing size and complexity of contracts are leading to longer procurement cycles for some clients.
- The company is on track to achieve underlying cash flow positive status for the full year.
Summary
ECP Asset Management
31 Jan 2025
$4.49
- Nuix Ltd (NXL) underperformed this month.
- The company issued updated guidance, changing the annual contract value (ACV) from ~15% to a range of 11%-16% for the full year.
- EBITDA Jaws were reaffirmed, indicating that operating cost growth will be below revenue growth.
- Nuix was free cash flow (FCF) positive during the half and is expected to remain FCF positive at the FY.
- ECP Asset Management continues to believe that NXL is a leader in data analytics and investigative software.
- The company is uniquely positioned to capitalize on the growth of unstructured data.
Summary
Blackwattle Investment Partners
30 Nov 2024
$6.28
- Nuix is a provider of specialised software for investigating and analysing large data pools.
- The stock has been the top contributor to the fund's performance in 2024.
- A 17% decline in share price occurred in November due to forecast revenue growth shifts.
- The revenue forecast for FY25 is now expected to be skewed to the second half of the year.
- In early December, Nuix renewed a key sales contract with ASIC, impacting second-half revenue.
- This renewal reinforces Nuix's leadership in its field and its strong client base.
- The company benefits from strong sector tailwinds due to increasing global data usage.
- Blackwattle Investment Partners considers NXL as optimal exposure to the AI thematic on the ASX.
- Nuix is noted for capital-light growth and recurring revenues.
Summary
Blackwattle Investment Partners
31 Oct 2024
$7.74
- Blackwattle Investment Partners continues to hold their position in Nuix Ltd due to its strong market presence.
- Nuix specializes in software for investigating and analyzing large data pools.
- The share price rose 18% in October after a 38% increase in September.
- The company's market capitalization has increased to over A$2.4bn, attracting more investor attention.
- Under CEO Jonathan Rubinsztein, Nuix has undergone a significant transformation.
- Nuix is recognized as a leader in its field and boasts strong blue-chip clients.
- The company benefits from strong sector tailwinds amid rising global data usage.
- NXL is viewed as the best exposure to the AI thematic on the ASX, offering capital-light growth and recurring revenues.
- Despite the recent share price increases, significant potential upside remains as it still trades at a discount to global peers.
Summary
Blackwattle Investment Partners
30 Sept 2024
$6.56
- Blackwattle Investment Partners provides an update on their investment thesis regarding Nuix Ltd.
- Nuix specializes in software for investigating and analyzing large data sets.
- Recent performance saw a 38% rise in share price in September, following a similar increase in August.
- The company announced better-than-expected earnings guidance for FY25.
- As Nuix grows to a market cap of over A$2bn, investor awareness is increasing.
- Nuix has undergone a significant transformation under CEO Jonathan Rubinsztein.
- It is recognized as a clear leader in its field with notable blue-chip clients.
- There are strong sector tailwinds due to rising global data usage.
- NXL is viewed as a top play in the AI thematic on the ASX with capital-light growth and recurring revenues.
- Despite recent gains, there is significant potential upside since it trades at a discount to global peers.
Summary
Wilson Asset Management
30 Sept 2024
$6.56
- Nuix held its annual investor day, announcing plans for expansion into deep learning.
- The integration with options in public artificial intelligence (AI) platforms is expected to enhance performance in search and processing.
- Appointment of Peter McClelland as Chief Financial Officer, bringing over 25 years of experience.
- Wilson Asset Management believes that Nuix's advancements in AI integration will contribute positively to its growth profile.
- The company is focused on expanding its global market share.
Summary
ECP Asset Management
30 Sept 2024
$6.56
- ECP Asset Management notes that Nuix Ltd (NXL) outperformed during the month despite no new newsflow.
- NXL delivered a good result the month prior, slightly exceeding expectations.
- The company reported increasing upsell, while reducing churn, improving net revenue retention.
- This capability was always present but was obscured by accounting complexities of multi-year deals and the transition to consumption-based pricing.
- The focus moving forward is on determining a sustainable net revenue retention that the business can generate into the future.
Summary
ECP Asset Management
31 Aug 2024
$4.88
- ECP Asset Management notes that Nuix Ltd (NXL) delivered a good result, slightly exceeding expectations.
- The company reported increasing upsell and reducing churn, leading to improved net revenue retention.
- This capability was previously obscured by accounting complexities related to multi-year deals and the transition to consumption-based pricing.
- ECP Asset Management's focus moving forward is on determining a sustainable net revenue retention that the business can generate in the future.
Summary
Blackwattle Investment Partners
31 Aug 2024
$4.88
- Blackwattle Investment Partners continues to hold its position in Nuix Ltd.
- Nuix is a provider of specialised software for investigating and analysing large data pools.
- The share price rose 38% in August due to better-than-expected earnings guidance for FY25.
- The investment thesis is based on expectations of improving quality as the company emerges from an organisational rebuild.
- Incoming CEO Jonathan Rubinsztein has established a new senior leadership team and culture.
- Nuix maintains a clear leadership position in its field with enviable blue-chip clients.
- Strong sector tailwinds are supported by the world's increasing data usage.
- Despite the recent share price increase, plenty more upside is anticipated as the stock trades at a significant discount to global peers.
Summary
Blackwattle Investment Partners
31 May 2024
$3.10
- Blackwattle Investment Partners continues to hold a position in Nuix Ltd.
- Nuix provides specialized software for investigating and analyzing large data pools.
- Share price increased by 57% in May following better-than-expected earnings guidance for FY24.
- The investment thesis is based on the expectation of improving quality as Nuix emerges from a reputational rebuild.
- Post-IPO governance issues led to a significant fall in share price; however, leadership changes are changing the narrative.
- Incoming CEO Jonathan Rubinsztein has rebuilt the senior leadership team and established stronger governance.
- Nuix remains a leader in its field with a strong client base.
- The company benefits from strong sector tailwinds due to increasing global data usage.
- Despite recent gains, there is still upside potential as the stock trades at a discount to global peers.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"As the market recalibrates, Nuix appears to be navigating the typical turbulence of software evolution. With its AI-enhanced offerings on the horizon, the current dip may just be the calm before a lucrative storm for discerning investors."
Last Updated: 05 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in Nuix Ltd (ASX:NXL)?
Fund managers including Blackwattle Investment Partners, Longwave Capital, Datt Capital, Yarra Capital Management, Wilson Asset Management, Sandon Capital, ECP Asset Management and QVG Capital have invested in Nuix Ltd (ASX:NXL).
Why do fund managers invest in Nuix Ltd?
Fund managers are investing in Nuix Ltd due to its position as a leading provider of specialized software for data analysis, particularly as it prepares to launch an AI-enhanced version of its product. Despite recent share price declines, which were attributed to a slower-than-expected revenue growth forecast and extended sales cycles, fund managers see compelling value in the company. The anticipated commercialization of this higher-margin product, combined with Nuix's capital-light growth and recurring revenue model, positions it as a strong investment opportunity within the AI sector on the ASX.
What happened to Nuix Ltd (ASX:NXL)?
Fund managers, including QVG Capital, remain cautious about their investment in Nuix Ltd due to market reactions to a recent CEO departure, which raised concerns about potential negative developments. This management change has contributed to a decline in share price, reflecting the market's forward-looking nature and sensitivity to leadership stability.