Netwealth Group Ltd reported a record fiscal 2026 with total income rising 20.6% to AUD 391.1 million and adjusted EBITDA up 18% to AUD 192.9 million, as funds under administration (FUA) climbed 20.3% to AUD 135.7 billion.
The wealth platform operator also announced a final fully franked dividend of AUD 0.21 per share, bringing its full-year payout to AUD 0.42, a 9.1% increase. Netwealth maintained its dividend growth streak for the eighth consecutive year, with an earnings per share increase of 16% to AUD 0.55. Funds under administration reached AUD 138.8 billion in an interim update as of August 21, reflecting net flows of AUD 2 billion excluding AUD 600 million in refinanced institutional accounts.
Despite the strong financial performance, shares in Netwealth fell 4.73% to AUD 21.17, erasing gains from an 18% total return over the past year and an 11.5% gain year-to-date. The decline followed the reaffirmation of FY27 net flow guidance in the range of AUD 18 billion to AUD 20 billion, below some analyst expectations, and an adjusted EBITDA margin target of approximately 47% excluding First Guardian and large expenses.
CEO Matt Heine highlighted the company’s market leadership, noting that Netwealth and one other platform account for roughly 80% of total industry net flows. The company’s primary platform share stands at 78%, while its platform market share reached 9.7% over the 12 months ending March 31, a 1% increase. Legacy platforms collectively lost 2.2% market share during the same period.
Hayden Stockdale, CFO, emphasized the company’s investment stance, stating that prioritizing growth over margin optimization remains a strategic focus. The DX30 strategy aims to double FUA by 2030, implying a compound annual growth rate of approximately 19%, while targeting operating EBITDA margins near 50%. Capitalized software investment for FY27 is projected at AUD 17 million.
Netwealth also outlined new initiatives, including an individual HIN service launched with Thinklei, a bond trading desk, enhanced international trading solutions, and the Nova generative AI chatbot, which handled 15-19% of advisor inquiries in its first month. The company’s unified data management platform, powered by Xeppo (rebranded as Unified), now connects to 32 enterprise solutions.
