The Netwealth Group Ltd (ASX: NWL) share price is in focus today after the business reported second consecutive record quarterly custodial fund inflows of $8.4 billion, with funds under administration (FUA) totalling $125.6 billion—up 23.6% from the prior year.
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What did Netwealth Group report?
- Total custodial FUA inflows of $8.4 billion for the December 2025 quarter
- Total FUA at 31 December 2025 reached $125.6 billion, up 23.6% year-on-year
- Net FUA flows for the quarter of $4.2 billion, or a record $4.6 billion excluding institutional outflows
- Managed Account FUM net flows of $1.8 billion, up 61.4% on prior year
- Total number of accounts grew 13.7% over the year to 172,221
What else do investors need to know?
Netwealth continued to invest in its platform and distribution, bringing on five experienced sales executives and launching new features. During the quarter, the group soft-launched its individual HIN administration offering, designed for advisers and stockbrokers, and fully rolled out Netwealth Private targeting the HNW and UHNW segment.
Enhanced research and integration tools, including AI-powered summaries and advanced charting, were deployed to support new initiatives. Efficiency upgrades, such as digital account opening and automated super-to-pension transfers, were completed to improve the client experience.
What did Netwealth Group management say?
Matt Heine, CEO and Managing Director, said:
Our customers are central to our strategy and our focus remains on both understanding and delivering solutions that meet our client needs.
We're pleased to be adding individual HIN administration and reporting for our users, providing this important and new market with access to the Netwealth platform functionality including enhanced user experiences and customer options while delivering adviser capacity.
Equally as pleasing is the Netwealth Private offering that can operate as a standalone solution or in conjunction with our individual HIN offering.These solutions continue to underpin our Ultra and High Net Wealth offering and demonstrates our significant experience and capability in this segment.
What's next for Netwealth Group?
Looking ahead, Netwealth expects FY26 FUA net flows to be broadly in line with FY25, with an EBITDA margin around 49% (excluding the First Guardian compensation impact). The company anticipates a $101 million one-off compensation charge in 1H26 but notes dividends will be based on underlying earnings, excluding this charge.
Management highlights strong recurring revenue, consistent cash flow, and low capital expenditure as ongoing strengths. The individual HIN rollout and continued integration work are expected to expand Netwealth's footprint in the growing wealth management sector.
Netwealth Group share price snapshot
Over the past 12 months, Netwealth shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
