Generation Development Group (ASX: GDG) posted a 21% rise in underlying net profit after tax to $40.7 million for the year ended June 30, 2026, as revenue climbed 23% to $178.7 million. The company’s statutory net profit fell 10% to $31.9 million, reflecting a 38% increase in income tax rebates that offset higher costs.
Total expenses rose 26% to $119.5 million, driven by growth across its three divisions: Generation Life, Evidentia Group and Lonsec. Funds under management surged 37% year-over-year to $46.5 billion, supported by record net inflows of $9.7 billion. The company’s cash position stood at $114.8 million as of June 30, while its corporate net cash position declined to $57.5 million.
Generation Life, the group’s largest segment, reported a 57% increase in underlying EBITDA to $23.3 million on revenue growth of 34% to $73.9 million. Investment bond gross inflows rose 52% to $1.54 billion, and the division maintained a 39.1% market share in investment bonds, up 6.8 percentage points from the prior year. Evidentia Group’s EBITDA grew 22% to $25.1 million on revenue of $58.8 million, with managed account net inflows up 14% to $8.4 billion. Lonsec’s EBITDA increased 15% to $22.8 million on revenue of $45.8 million, as the number of researched products rose 9% to 2,001.
The group entered a new $50 million debt facility with National Australia Bank, drawing $40 million by year-end. Shares fell 14.06% to $3.30 following the results, near a 52-week low of $3.23. Management guided FY27 expense growth to remain broadly in line with FY26’s 26% increase, while forecasting monthly inflows at Generation Life to rise to $150 million–$200 million, up from $120 million–$150 million in FY26.
Longer-term projections indicate the investment bond market could reach $60 billion in funds under management by 2035, while the managed account sector is expected to exceed $520 billion by 2030. Total superannuation assets are forecast to grow from $4.5 trillion to $12.4 trillion by 2045.
