Netwealth Group’s shares declined 4.73% to close at $21.17 on August 26 after the wealth platform operator reported record FY26 financial results alongside cautious FY27 guidance.
The company posted total income of $391.1 million for the year ended March 2026, a 20.6% increase from FY25. Funds under administration (FUA) rose 20.3% to $135.7 billion, while adjusted EBITDA climbed 18.0% to $192.9 million. Adjusted EBITDA margin reached 49.1% excluding $100.7 million in First Guardian-related expenses and $4.5 million in legal fees, though management expects the margin to moderate to approximately 47% in FY27.
Revenue growth was driven by a 28.5% increase in management fee income and a 21.5% rise in transaction fee income. Non-administration fees now account for 61% of platform revenue, up from 59% in FY25. Gross inflows hit a record $32.3 billion, with net flows totaling $15.4 billion for the year, though this represented a slight decline from $15.8 billion in FY25 when excluding pension payments.
Market share expanded by 98 basis points to 9.7%, with Netwealth and industry peer HUB24 capturing roughly 80% of total industry net flows. The company’s primary platform preference metric stood at 78%, outperforming the market average of 73%. Legacy competitors collectively lost 2.2 percentage points of market share over the 12 months to March 2026.
CEO Matt Heine highlighted the company’s dominant position, noting that Netwealth and one other platform account for around 80% of industry flows. However, shares fell after management guided FY27 net flows to between $18 billion and $20 billion, representing approximately 13-15% growth on the FY26 closing FUA base. The guidance follows early FY27 net flows of $2.0 billion as of August 21, 2026, excluding $0.6 billion of institutional outflows.
Netwealth’s DX30 strategy targets doubling FUA by FY30, implying a compound annual growth rate of roughly 19%. The company’s Rule of 40 metric reached 69.9 for FY26, reflecting strong revenue growth and profitability.
