Netwealth Group Ltd reported record financial results for the fiscal year ended June 30, with total income rising 20.6% year-over-year to AUD 391.1 million and adjusted EBITDA up 18% to AUD 192.9 million. The company's funds under administration (FUA) reached AUD 135.7 billion, an increase of AUD 22.9 billion, while earnings per share advanced 16% to AUD 0.55.
The group declared a final fully franked dividend of AUD 0.21 per share, bringing the full-year total to AUD 0.42 per share, an increase of 9.1% and marking the eighth consecutive year of dividend growth. Netwealth's return on assets stood at nearly 17%, positioning it as the second-highest among ASX-listed peers.
Operational metrics reflected strong growth, with FUA reaching AUD 138.8 billion as of August 21, excluding AUD 600 million in refinanced institutional accounts. Gross flows exceeded AUD 32 billion, while net flows (excluding pension outflows) totaled AUD 15.9 billion. The company's platform market share rose to 9.7%, up 1 percentage point over the prior year, with Netwealth and one competitor capturing approximately 80% of industry net flows.
Management reaffirmed FY27 guidance for net flows between AUD 18 billion and AUD 20 billion, alongside an adjusted EBITDA margin target of approximately 47%. The company's DX30 strategy aims to double FUA by 2030, implying a compound annual growth rate of roughly 19%, while targeting operating EBITDA margins near 50%.
Shares of Netwealth fell 4.73% to AUD 21.17 following the earnings update, paring year-to-date gains to 11.5%. The stock has traded between AUD 19.81 and AUD 36.66 over the past 52 weeks, delivering an 18% return over the prior year.
