Netwealth Surges with $15.8B Net Flows and 31% EBITDA Growth in FY25

Robust Growth Across Key Metrics

Netwealth Group Limited (ASX – NWL) has delivered an impressive FY25 financial performance, highlighted by record funds under administration (FUA) net flows of $15.8 billion, a 40.4% increase over the prior year. This surge propelled total FUA to $112.8 billion as of June 30, 2025, with a further rise to $118.5 billion by mid-August, reflecting sustained momentum.

The company’s total income climbed 27.1% to $324.4 million, driven primarily by platform revenue growth of 26.8% to $316.4 million. This growth was supported by a 5.6% increase in financial intermediaries to 3,971 and a 13.3% rise in client accounts to 162,234, underscoring Netwealth’s expanding market footprint.

Operational Efficiency and Profitability

Netwealth’s operational leverage is evident in its 31.1% increase in EBITDA to a record $163.5 million, with the EBITDA margin expanding by 150 basis points to 50.4%. The company managed to keep operating expenses growth (23.3%) well below income growth, reflecting disciplined cost management amid strategic investments in people, technology, and security.

Net profit after tax (NPAT) rose 39.8% to $116.5 million, with a margin improvement to 35.9%. Earnings per share increased by nearly 40% to 47.3 cents, signaling strong shareholder returns. The Board declared a fully franked final dividend of 21.0 cents per share, a 50% increase, bringing the full-year dividend to 38.5 cents, reflecting confidence in cash flow generation and profitability.

Strategic Investments and Product Innovation

Netwealth continues to invest heavily in technology and product innovation to sustain growth. The company expanded its managed account offerings, added new investment models including ESG and alternative strategies, and enhanced platform capabilities such as mobile app improvements and streamlined onboarding processes.

Integration of recent acquisitions Xeppo and Flux is progressing well, enhancing reporting analytics and digital engagement tools for advisers and clients. These initiatives position Netwealth to deepen client relationships and capture further market share in both affluent advice and private wealth segments.

Market Position and Outlook

Netwealth’s market share continues to grow, supported by strong net fund flows and industry recognition for platform quality and adviser satisfaction. The company holds a robust financial position with no debt, strong recurring revenues, and excellent cash flow conversion.

Looking ahead to FY26, Netwealth expects to maintain FUA net flows at similar levels to FY25 and manage operating expense growth in line with the prior year, while increasing investment in capitalised software to support future scalability and innovation.

Leadership Transition

In leadership news, Netwealth announced the retirement of Chair Tim Antonie, acknowledging his decade of guidance, and welcomed Michael Wachtel as the incoming Chair from September 1, 2025. Wachtel brings extensive global experience in governance, risk management, and finance, signaling continuity and strategic focus for the company’s next growth phase.