Sequoia Financial Group reported steady revenue but a sharp profit decline in FY25, driven by divestments and goodwill impairment. The company simplified its business structure and strengthened governance while maintaining dividend payouts.
- Revenue steady at $124.1 million, down 0.4%
- Profit after tax plunged 86.6% to $3.23 million
- EBITDA rose 13.7% to $9.9 million despite profit drop
- Divestment of five non-core businesses completed
- New AFSL Governance Committee established
Financial Performance and Strategic Simplification
Sequoia Financial Group Limited closed the 2025 financial year with revenues holding steady at $124.1 million, a marginal 0.4% decline from the prior year. However, the company’s profit after tax attributable to owners sharply contracted by 86.6%, falling to $3.23 million. This significant drop was influenced by the divestment of several insurance broking businesses and a $4.22 million impairment charge related to goodwill and intangible assets.
Despite the profit setback, Sequoia’s EBITDA increased by 13.7% to $9.9 million, reflecting disciplined margin management and gains from investment portfolios. The Group’s balance sheet remains robust, with $4.4 million in cash reserves and $16 million in listed investments, underpinning its capacity for future growth and capital returns.
Business Model Reshaping and Governance Enhancements
FY25 marked a pivotal year of transformation for Sequoia, as it streamlined its operations from four to two core divisions – Licensee & Adviser Services and Legal & Administration Services. This restructuring followed the sale of five non-core businesses, including insurance broking entities, to sharpen focus on scalable, high-margin services.
Governance was a central theme, with the establishment of an independent AFSL Governance Committee chaired by former ASIC Commissioner Danielle Press. This committee aims to elevate regulatory oversight and risk management across Sequoia’s Australian Financial Services Licences, reinforcing the Group’s commitment to compliance and client trust.
Investing in Adviser Capability and Technology
Sequoia continued to invest in technology enhancements, focusing on compliance monitoring, data analytics, and adviser platforms to improve scalability and transparency. The Group also expanded its adviser base, supporting 30 Professional Year candidates to address the national shortage of qualified financial advisers.
The Licensee & Adviser Services division saw Funds Under Advice grow to $18 billion, up from $12.5 billion the previous year, signaling strong adviser engagement and client trust. The dual-license model, operating through InterPrac Financial Planning and Sequoia Wealth Management, supports both retail and wholesale advice markets with distinct propositions.
Capital Management and Shareholder Returns
Sequoia declared fully franked dividends totaling 4.0 cents per share for FY25, maintaining a payout ratio between 40% and 60% of normalized earnings. The Group’s capital management strategy balances shareholder returns with flexibility to pursue accretive acquisitions and platform investments.
Leadership and Outlook
Leadership changes included the appointment of Mike Ryan as Chairman in August 2024 and the resignation of Charles Sweeney in July 2025. The Board is actively seeking additional directors to strengthen governance as the Group expands.
Looking ahead, Sequoia is positioned to capitalize on rising demand for quality financial advice amid a shrinking adviser population. Regulatory changes and outsourcing trends are expected to drive growth in Legal & Administration Services. Execution of the streamlined strategy and continued investment in adviser capability will be critical to restoring profit momentum.
Bottom Line?
Sequoia’s FY25 results underscore the challenges of transformation amid regulatory pressures, with future growth hinging on disciplined execution and governance.
Questions in the middle?
- How will Sequoia’s new AFSL Governance Committee impact regulatory compliance outcomes?
- What is the timeline and expected impact of adviser base expansion on revenue growth?
- Will the impairment charge signal further asset write-downs or stabilize in FY26?