The Netwealth Group Ltd (ASX: NWL) share price is in focus after the company's September 2026 quarterly update revealed funds under administration (FUA) rose to a record $139.2 billion, up 2.5% for the quarter and 15.2% on the prior year. Custodial inflows remained strong at $7.8 billion, while funds under management (FUM) climbed 24% to $36.6 billion.
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What did Netwealth report?
- Total FUA increased by $3.4 billion for the quarter to $139.2 billion (up 15.2% year-on-year).
- Custodial inflows were $7.8 billion; net FUA flows totalled $3.6 billion (excluding pension payments and key outflows).
- FUM net flows reached a record $2.4 billion, lifting total FUM to $36.6 billion (up 24.0% year-on-year).
- Managed Account FUM increased 26.0% to $32.4 billion; Managed Funds rose 10.9% to $4.2 billion.
- Netwealth added 3,822 net new accounts (now totalling 186,098) and 21 new financial intermediary relationships (now 4,226).
What else do investors need to know?
Netwealth made further progress on its platform capabilities with the launch of Individual HIN and Netwealth Private, expanding into stockbroking and private wealth markets. The company also announced the acquisition of Paradino, an AI-powered adviser platform designed to boost adviser productivity, which is expected to close by October 2026.
Operational highlights included a major upgrade to the Managed Accounts platform, strengthening scalability and efficiency. Its virtual assistant Nova and the new Research Hub have supported advisers with tens of thousands of enquiries and investment research in the quarter. Regulatory-wise, Netwealth is defending a class action relating to First Guardian investments but says it continues to deliver on its RISE plan.
What did Netwealth management say?
Chief Financial Officer Hayden Stockdale said:
Our record flows and ongoing investment in technology reflect our focus on supporting adviser growth and client outcomes. Our strategic initiatives are well on track.
What's next for Netwealth?
Looking ahead, Netwealth has updated its FY27 guidance (before Paradino) to target FUA net flows of $17–19 billion and maintain a strong EBITDA margin of approximately 47%. The company expects a low capital expenditure year with strong cash reserves and recurring revenue underpinning predictable results.
After finalising the Paradino deal, Netwealth expects a one-off EBITDA loss of around $3 million for the unit in FY27 and plans to invest a further $10 million over two years to accelerate product development. Paradino's financials will be reported separately.
Netwealth share price snapshot
Over the past 12 months, Netwealth shares have declined 52%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.
