The Netwealth Group Ltd (ASX: NWL) share price is in focus today after the wealth platform provider posted a 25% lift in revenue to $193.8 million and record custodial inflows of $16.4 billion for the half.
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What did Netwealth report?
- Revenue rose 24.7% to $193.8 million compared to 1H25 (excluding First Guardian expenses)
- EBITDA increased by 23.9% to $96.7 million with an EBITDA margin of 49.9%
- Net profit after tax (NPAT) up 19.9% to $69.0 million; NPAT margin at 35.6%
- Funds under administration (FUA) grew 23.6% to $125.6 billion
- Interim dividend of 21.0 cents per share, up 20% and fully franked
- Record half-year custodial inflows of $16.4 billion, up 10.7%
What else do investors need to know?
Netwealth delivered strong growth in managed accounts, with net flows up 42.7% to $3.4 billion. Client numbers jumped 13.7% to 172,221, and the number of financial advisers using the platform increased by 7.3% to 4,089.
The business continued to diversify its revenue mix, supported by growth in ancillary, management, transaction, and administration fees. While operating expenses rose 25.5% to $97.1 million due to investments in people and technology, the cash flow conversion ratio remained robust at 99.7%.
Netwealth has made progress on strategic initiatives, including the soft launch of its Individual HIN solution and the upcoming launch of Netwealth Private for high net worth clients. The company's recent partnership with FinClear is expected to further bolster its broker and wealth professional offerings.
What did Netwealth management say?
CEO and Managing Director of Netwealth Matt Heine said:
Netwealth enters this half with strong momentum, continued business growth, and increasing traction across the market and a strong pipeline of new opportunities.
What's next for Netwealth?
Management reaffirmed its FY26 guidance, expecting EBITDA margin (excluding non-recurring items) of around 49% and capitalised software investment of approximately $12 million, subject to normal market conditions. Netwealth will continue to invest in product, technology and security, aiming to expand its market share across both affluent advice and private wealth segments.
Ongoing initiatives include launching new products for wholesale and institutional clients, further integrating AI and data-driven solutions, as well as continuously enhancing adviser productivity and client engagement. The company anticipates continued benefits from structural shifts in the superannuation and wealth management industry, with momentum expected to flow into FY27.
Netwealth share price snapshot
Over the past 12 months, Netwealth shares have declined 30%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
