Sequoia Reports $9.9M EBITDA, $124M Revenue, and 44% FUA Growth in FY25
Sequoia Financial Group reported a robust FY25 with a 13.7% rise in EBITDA and a 44% jump in funds under advice, underpinned by strategic restructuring and technology investments.
- EBITDA increased 13.7% to $9.9 million
- Funds under advice grew 44% to $18 billion
- Goodwill write-down of $4.2 million in Licensee Services
- Fully franked dividend declared at 4.0 cents per share
- Strategic focus on adviser growth, operational efficiency, and acquisitions
Strong Second Half Drives FY25 Performance
Sequoia Financial Group Limited (ASX – SEQ) closed FY25 on a high note, reporting a 13.7% increase in EBITDA to $9.9 million and a net profit before tax of $5.84 million. The company’s revenue remained stable at $124.1 million despite divestments completed in mid-2024. A key highlight was the 44% surge in funds under advice (FUA), which climbed to $18 billion, reflecting strong organic growth and adviser network expansion.
Restructuring and Technology Investments Pay Off
The year saw Sequoia transition to a simplified two-division structure, which contributed to a significant uplift in second-half operating profit. This restructuring, coupled with ongoing investments in technology; including the implementation of AI-driven compliance tools within Legal & Administration Services; has enhanced scalability and margin expansion. These tools have strengthened governance and compliance oversight, a critical focus area given recent adviser removals and compliance vetting actions.
Governance and Leadership Enhancements
Sequoia also bolstered its governance framework and executive team, appointing Daryl Stout as Head of Licensee Services and initiating a board renewal process. These moves aim to reinforce oversight and strategic direction as the company pursues growth. The goodwill write-down of $4.2 million in the Licensee Services division reflects prudent accounting adjustments amid the restructuring.
Strategic Priorities and Market Position
Looking ahead to FY26, Sequoia plans to increase its adviser base by 10-25%, improve revenue per adviser, and double EBITDA. The company is also focused on expanding its salaried advice businesses, leveraging its media division to accelerate growth, and pursuing accretive acquisitions. With a strong balance sheet featuring $48.5 million in net assets and $17.8 million in franking credits, Sequoia is well-positioned to support dividends and share buybacks while investing in strategic initiatives.
Industry Trends Support Growth Outlook
The broader financial advisory sector is experiencing rising demand amid declining adviser numbers and increasing funds managed per adviser. Sequoia’s scalable, adviser-first model aligns well with these trends, particularly as advice fees rise and intergenerational wealth transfers accelerate. The company’s focus on operational efficiency and platform synergies aims to capitalize on these market dynamics.
Bottom Line?
Sequoia’s FY25 results set a solid foundation, but execution on adviser growth and acquisitions will be critical to sustaining momentum.
Questions in the middle?
- How will Sequoia manage integration risks from planned acquisitions?
- What impact will the goodwill write-down have on future Licensee Services profitability?
- Can the company maintain its dividend payout amid ongoing restructuring costs?
