Generation Development Group reported record growth in funds under management and revenue for the fiscal year ended June 30, 2026, but its shares fell 14% as investors focused on margin pressures.
The group’s funds under management surged 37% to $46.5 billion, driven by net inflows of $9.7 billion. Revenue increased 23% to $178.7 million, while underlying net profit after tax rose 21% to $40.7 million. Underlying earnings per share remained flat at 10.2 cents. Operating expenses climbed 26% to $119.5 million, outpacing revenue growth and weighing on margins.
Generation Development Group operates through three core segments: Generation Life, Evidentia Group, and Lonsec Research and Ratings. Generation Life reported a 35% rise in segment funds under management to $5.95 billion, with revenue up 34% to $73.9 million. Evidentia Group’s funds under management grew 37% to $40.5 billion, with revenue increasing 26% to $58.8 million. Lonsec Research and Ratings saw revenue rise 7% to $45.8 million, supported by expanded product coverage and subscriber growth.
The group’s net cash position stood at $57.5 million, excluding unallocated client funds, with total cash and cash equivalents of $114.8 million. A $50 million debt facility with National Australia Bank was established, with $40 million drawn at year-end.
Management highlighted progress in integrating Evidentia Group and Lonsec Investment Solutions, completed in June 2026, and noted a shift toward controlled deployment of artificial intelligence across the group. However, the company flagged continued expense growth in fiscal 2027, with operating expenses expected to rise broadly in line with the 26% increase seen in FY26.
For fiscal 2027, Generation Development Group expects Evidentia net inflows of $5 billion to $7 billion and Generation Life monthly inflows of $150 million to $200 million, up from the prior range of $120 million to $150 million. The group maintained its fully-franked final dividend at 1.0 cent per share, bringing the full-year payout to 2.0 cents per share, unchanged from FY25.
