How Did Raiz Invest Achieve 147% EBITDA Growth in FY25?

Strong Financial Momentum

Raiz Invest Limited (ASX – RZI) has delivered a compelling set of financial results for the year ended June 30, 2025, marked by solid revenue growth and a significant improvement in profitability metrics. Revenue climbed 15% year-on-year to $24.1 million, driven by a 7% increase in active customers to 329,277 and a 9% rise in average revenue per user (ARPU) to $75.67. This growth reflects Raiz’s expanding footprint in the Australian fintech landscape and the increasing adoption of its diversified investment products.

Underlying EBITDA surged 147% to $2.8 million, highlighting the company’s improved operating leverage as it scales. The underlying EBITDA margin nearly doubled to 11.8%, with the second half of FY25 showing even stronger profitability at 17.1%. Despite this progress, Raiz reported a modest net loss after tax of $0.4 million, a substantial improvement from the $2.8 million loss in the prior year, signaling a trajectory toward sustained profitability.

Customer and Funds Growth Driving Performance

Raiz’s customer base continues to grow steadily, with active customers reaching 333,866 by late August 2025. The company’s funds under management (FUM) experienced a robust 30% increase to $1.82 billion, fueled by strong net inflows of $210 million, the highest since FY22, and positive market returns. Notably, Raiz’s product segments such as Raiz Kids Portfolios, Raiz Plus, and Superannuation portfolios all posted impressive growth rates, underscoring the success of its multi-product strategy.

These gains are supported by Raiz’s innovative approach to product development, including the launch of Raiz Lite for first-time investors, the expansion of Raiz Plus investment options, and the introduction of automated Raiz Rewards. The company also enhanced customer engagement through initiatives like Raiz Jars for savings goals and the Raiz Your Game podcast, which has attracted significant attention with over 355,000 views.

Strategic Partnerships and Industry Recognition

Raiz’s strategic partnership with State Street Investment Management is progressing well, promising to broaden market awareness and facilitate new product development, including a retirement income product. This collaboration aligns with Raiz’s vision of empowering Australians to achieve financial well-being through accessible and intelligent investment solutions.

The company’s innovation and customer-centric approach have earned it multiple accolades, including the 2025 Canstar Innovation Excellence Award for Raiz Plus portfolios and recognition as one of CNBC World’s Top Fintech Companies. Such endorsements reinforce Raiz’s position as a leading player in the competitive fintech sector.

Capital Position and Outlook

Raiz ended FY25 with a healthy cash balance of $13 million, up 54% from the previous year, supported by positive operating cash flows and a successful equity raise in the first half of the year. Operating expenses rose modestly by 7%, reflecting strategic investments in senior management and marketing initiatives, including non-cash advertising credits.

Looking ahead, Raiz has provided FY26 underlying EBITDA guidance in the range of $4.5 million to $5.5 million, signaling confidence in continued growth and operational efficiency. The company’s leadership emphasizes ongoing organic growth strategies and potential mergers and acquisitions to sustain momentum.