Netwealth Posts 28% FUA Growth and 31% EBITDA Rise in FY25

Strong Growth Across the Board

Netwealth Group Limited has delivered an impressive set of financial results for FY25, showcasing significant growth in key metrics that highlight the company’s expanding footprint in the wealth management sector. Funds Under Administration (FUA) surged 28.2% year-over-year to reach $112.8 billion, driven by record net inflows of $15.8 billion. This momentum reflects the company’s successful strategy in attracting and retaining clients across diverse segments.

Netwealth’s total income rose 27.1% to $324.4 million, supported by a diversified revenue base that includes administration, transaction, management, and ancillary fees. The company’s EBITDA grew 31.1%, with the margin expanding to a robust 50.4%, underscoring operational efficiency and effective cost management. Net profit after tax (NPAT) climbed 39.8% to $116.5 million, reflecting both strong top-line growth and disciplined expense control.

Operational Leverage and Strategic Investment

Netwealth demonstrated notable operational leverage, with expenses growing 380 basis points slower than revenue. This efficiency gain was achieved through targeted investments in technology and people, as well as improvements in customer service and platform functionality. The company added 104 new roles during the year, including integration of teams from recent acquisitions Xeppo and Flux, signaling a commitment to innovation and service excellence.

Platform revenue diversification was a key highlight, with transaction fee income increasing 47.7% and management fees up 31.1%. The average cash transaction account balance rose 25.3%, supported by a 15 basis point increase in cash margin. These factors contribute to a highly recurring and resilient revenue stream, positioning Netwealth well for sustainable growth.

Market Position and Client Expansion

Netwealth’s market share climbed to 8.7%, an increase of 1.1 percentage points, as the company continued to gain ground against legacy platforms. The number of financial intermediaries grew 5.6% to 3,971, while client accounts increased 13.3% to 162,234. Growth was broad-based across client segments, including affluent advice, private wealth, and institutional investors, supported by innovative product offerings and enhanced platform capabilities.

The company’s strategic focus on leveraging data, AI, and technology to improve adviser productivity and client engagement is evident in its product roadmap. New offerings targeting ultra-high-net-worth clients and family offices are set to roll out progressively in FY26, alongside enhancements to managed accounts and individual HIN administration services.

Sustainability and Governance

Netwealth also emphasized its commitment to corporate sustainability, achieving carbon neutrality for operational emissions and embedding diversity and inclusion across its workforce. The company met its 40/40/20 targets for board and executive representation and launched initiatives to strengthen cybersecurity and ethical governance.

Outlook and Leadership Transition

Looking ahead to FY26, Netwealth expects to maintain strong FUA net flows and stable operating expense growth, with increased investment in capitalised software to enhance platform functionality. The company’s balance sheet remains strong, with significant cash reserves and no debt, supporting ongoing strategic initiatives.

Leadership changes include the retirement of long-serving Chair Tim Antonie and the appointment of Michael Wachtel as incoming Chair, bringing extensive global experience in governance and risk management. This transition marks a new chapter as Netwealth seeks to capitalise on emerging market opportunities and deepen its competitive advantage.