The Netwealth Group Ltd (ASX: NWL) share price is in focus as the company posted a 40.4% jump in funds under administration net flows and a 39.8% rise in profit for FY25. Revenue climbed 27.1% and a fully franked final dividend of 21 cents per share was declared.
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What did Netwealth report?
- Total income up 27.1% to $324.4 million
- EBITDA rose 31.1% to $163.5 million, with margin expanding to 50.4%
- NPAT increased 39.8% to $116.5 million
- Funds under administration (FUA) hit $112.8 billion, up 28.2%
- Final fully franked dividend of 21 cents per share; full year dividend of 38.5 cps, up 37.5%
What else happened in FY25?
Netwealth delivered record FUA net flows of $15.8 billion, with a significant proportion sourced from long-standing adviser relationships. The company increased adviser numbers to 3,971 and grew its client accounts by 13.3% to 162,234.
Managed Account balances also expanded to $23.5 billion, reflecting a 33.5% rise, while Netwealth continued to roll out new products and expand its investment menu. The business maintained industry recognition, topping multiple studies for platform quality, digital service, and adviser experience.
What's next for Netwealth?
Looking to FY26, Netwealth expects funds under administration net flows and operating expenses to remain broadly in line with FY25, assuming stable market conditions. The company plans to continue investing in product and technology to support further growth, focusing on reducing third-party reliance and expanding its market share among affluent, private wealth and institutional clients.
Management says strong recurring revenue and a debt-free balance sheet provide a solid base for ongoing investment and sustainable returns.
Netwealth share price snapshot
Netwealth shares have been a standout performer over the past year, rising 50% compared to a 12% increase for the S&P/ASX 200 Index (ASX: XJO).
