How Did Netwealth Achieve 40% Profit Growth and a 37.5% Dividend Boost in FY2025?
Netwealth Group Limited reported a standout FY2025 with net profit rising nearly 40% and funds under administration climbing 28%, underpinning a 37.5% increase in dividends. Strategic fintech acquisitions and robust governance enhancements position the company for sustained growth.
- Revenue up 26.8% to $316.4 million
- Net profit after tax jumps 39.8% to $116.5 million
- Funds under administration grow 28.2% to $112.8 billion
- Acquisitions of Xeppo and Flux expand fintech capabilities
- Final fully franked dividend raised 37.5% to 21.0 cents per share
Robust Financial Performance
Netwealth Group Limited (ASX – NWL) has delivered an exceptional financial performance for the year ended 30 June 2025, reporting a 26.8% increase in revenue to $316.4 million and a 39.8% surge in net profit after tax to $116.5 million. This growth was driven by a 28.2% expansion in funds under administration (FUA), which reached a record $112.8 billion, significantly outpacing the broader Australian wealth management platform market.
Strategic Acquisitions Bolster Fintech and Digital Engagement
During FY2025, Netwealth completed key acquisitions of Xeppo Pty Ltd and Flux Corp Pty Ltd, enhancing its fintech data integration and digital engagement capabilities. Xeppo’s data solutions and Flux’s financial education and gamified tools are expected to deepen client relationships and attract younger, emerging affluent investors. These acquisitions contributed $2.2 million in revenue and reflect Netwealth’s commitment to innovation and market expansion.
Dividend Growth Reflects Confidence and Shareholder Returns
Reflecting its strong earnings growth and confidence in sustainable performance, Netwealth’s Board declared a final fully franked dividend of 21.0 cents per share, bringing total dividends for the year to 38.5 cents per share; a 37.5% increase over the prior year. The company does not operate a dividend reinvestment plan, underscoring its focus on delivering cash returns to shareholders.
Operational Leverage and Investment in Technology
Netwealth maintained strong operational leverage with operating expenses growing 23.3%, below revenue growth, resulting in an improved EBITDA margin of 50.4%. The company strategically invested in technology, cybersecurity, and talent, including cloud infrastructure migration, AI integration, and enhanced security systems. These investments aim to sustain platform scalability, operational efficiency, and client experience amid evolving industry challenges.
Governance and Risk Management Enhancements
In FY2025, Netwealth integrated the Financial Accountability Regime (FAR) into its governance and risk frameworks, reinforcing transparency and accountability. The company maintained SOC 2 certification, demonstrating commitment to cybersecurity and data protection. Its comprehensive risk management framework addresses governance, strategic, operational, technology, and product risks, supporting long-term resilience.
Leadership Transition and Future Outlook
As part of its leadership evolution, Netwealth announced the retirement of Chair Timothy Antonie, with Michael Wachtel appointed as incoming Chair effective September 2025. The company enters FY2026 with strong momentum, a robust balance sheet, and a growing pipeline of opportunities across customer segments. Continued investment in platform functionality, adviser productivity, and market expansion underpins its outlook for sustained growth.
Bottom Line?
Netwealth’s record FY2025 results and strategic fintech acquisitions set the stage for continued market leadership and shareholder value creation in FY2026.
Questions in the middle?
- How will Netwealth integrate and leverage Xeppo and Flux to accelerate growth?
- What impact will the new Financial Accountability Regime have on executive remuneration and risk management?
- How will Netwealth sustain its rapid FUA growth amid increasing market volatility and competition?
