Generation Development Group Ltd. reported a 23% increase in annual revenue to AUD 178.7 million for the fiscal year ended June 2026, driven by record net inflows of AUD 9.7 billion.
Underlying net profit after tax climbed 21% to AUD 40.7 million on a pro forma basis, while earnings before interest, tax, depreciation and amortisation rose 18% to AUD 59.2 million. Profit before tax totalled AUD 54.2 million, exceeding market expectations. Earnings per share remained flat at AUD 0.102 on a pro forma basis. Group funds under management expanded 37% to AUD 46.5 billion.
Total expenses rose 26% to AUD 119.5 million, reflecting investments in staff, technology and platform upgrades. The group held AUD 97.5 million in cash and cash equivalents, excluding unallocated client redemption funds, with a net cash position of AUD 57.5 million.
Shares in Generation Development Group fell 14.06% to close at AUD 3.30, extending declines from AUD 3.84 at the start of the trading session. The stock has traded between AUD 3.23 and AUD 7.77 over the past year, with a market capitalisation of approximately AUD 700 million and a price-to-earnings ratio near 13.
All three core businesses contributed to growth. Generation Life’s gross inflows more than doubled to over AUD 1.5 billion, while its active adviser base reached nearly 3,000 on a 12-month rolling average. Evidentia Managed Accounts generated net inflows of AUD 8.4 billion, with the integration of Lonsec Investment Solutions completed on schedule and within budget in June 2026.
Management guided FY27 group expense growth to remain broadly in line with FY26’s 26% rate, with Generation Life and Evidentia expected to see modestly higher increases. Evidentia’s net inflows are forecast between AUD 5 billion and AUD 7 billion, while Generation Life’s monthly inflows are projected to rise to AUD 150 million–AUD 200 million from AUD 120 million–AUD 150 million in FY26.
Group Chief Executive Officer Grant Hackett said the company aimed to become "one of the most admired financial services companies" through performance, innovation and customer outcomes. He noted that group funds under management had grown 37% to AUD 46.5 billion, supported by record net inflows of AUD 9.7 billion, and that artificial intelligence deployment had moved from planning to controlled implementation across the group.
Chief Financial Officer Andrew Mellor described FY26 as "an exceptional year," citing record sales, net inflows and earnings growth, and noting that profit before tax of AUD 54.2 million was ahead of market expectations.
