The loss of a blue-ribbon Liberal seat is an "outlier" that does not represent a broader malaise in the NSW branch of the party, its under-pressure state leader says.
Former political adviser Jacqui Scruby has captured the Sydney seat of Pittwater, becoming the first teal independent in NSW parliament and handing the Liberals just their second loss in that electorate in 51 years.
Liberal candidate Georgia Ryburn conceded she would not win the seat on Monday afternoon, by which stage Ms Scruby led the count with more than 56 per cent of the vote on a two-candidate preferred basis.
The Liberals' Pittwater loss adds to a list of Sydney coastal seats that have gone to teal independents at a federal level and builds on the 2023 state election loss of the neighbouring seat of Wakehurst to independent Michael Regan.
Opposition Leader Mark Speakman pointed to the recent string of calamities that have plagued his party and said it gave voters no reason to back its candidate in Saturday's by-election in the northern beaches seat.
That vote was triggered by the resignation of sitting member Rory Amon over child-abuse allegations, which he denies.
The Liberal party also failed to nominate candidates for recent local government elections, including for Northern Beaches Council, while an ugly, public spat with junior coalition partner the Nationals also could have damaged their brand.
Mr Speakman said the conditions were a "perfect storm" the party could not withstand.
"It's been a tough few months … there have been a number of issues, whether it's local government, the Pittwater resignation, federal intervention, leaked text messages, a bit of friendly fire from one of our National Party colleagues," he said.
"Pittwater is an outlier, there were exceptional circumstances there that have not applied across the rest of the state."
Having not run a candidate in any of three by-elections held on the same day, Premier Chris Minns said Labor would not be taking a lap of honour after the opposition's latest disappointment.
"This is a wake-up call for major parties and voters are prepared to vote for independents if they don't like what they see from the majors," he said.
"(But) there's no crowing from Labor. We didn't contest the seat."
Mr Speakman earlier denied his leadership was in jeopardy in response to comments from an unnamed Liberal MP, who was quoted by News Corp as saying the party head was "finished" after the Pittwater loss.
"In a large party room, it would be a miracle if you didn't have the odd dissident … I have the overwhelming support of the Liberal party room," he said.
Swings to the Liberals at by-elections in the Sydney seats of Epping and Hornsby pointed to the strength of the party's brand, Mr Speakman said, lambasting Labor's choice not to contest the polls.
"The first opportunity voters had to cast a verdict on Chris Minns, he is nowhere to be seen," he said.
