Netwealth’s Bold Tech Bets Fuel Growth Amid Regulatory and Market Challenges

Strong Financial Momentum

Netwealth Group Limited has delivered an impressive set of financial results for the first half of FY26, highlighting its position as a leading player in Australia's wealth management and technology sector. The company reported funds under administration (FUA) of $125.6 billion, marking a 23.6% increase compared to the prior corresponding period. This growth was driven by custodial inflows of $16.4 billion, up 10.7%, and a broad-based expansion across customer segments and product types.

Revenue growth was equally notable, with total income rising 24.7% to $193.8 million. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 23.9% to $96.7 million, maintaining a strong margin of 49.9%. Net profit after tax (NPAT) grew 19.9% to $69.0 million, reflecting operational efficiency despite strategic investments.

Strategic Investments and Innovation

Netwealth’s CEO, Matt Heine, emphasised the company’s ongoing commitment to technology and innovation as key drivers of its success. The firm has invested heavily in expanding its product capabilities, governance, and technology infrastructure, including the launch of new offerings such as the Individual Holder Identification Number (HIN) solution and Netwealth Private, targeting high net worth and ultra-high net worth clients.

Artificial intelligence (AI) adoption is a cornerstone of Netwealth’s strategy, aimed at enhancing adviser productivity and client engagement. The company is leveraging AI to simplify workflows, improve personalised financial advice, and create capacity for advisers to serve a broader client base more efficiently.

Market Position and Industry Trends

Netwealth continues to capitalise on structural shifts in the wealth management industry, particularly the migration of funds from legacy platforms to technology-forward, adviser-led providers. Independent data shows Netwealth achieved the second highest platform net funds flows over the past 12 months, increasing its market share to 9.2%. This momentum is supported by demographic tailwinds and a growing preference for personalised advice and integrated wealth solutions.

The company’s strategic partnership with FinClear enhances its broker market offering by providing individual HIN data and trading access, further expanding its distribution channels. Additionally, Netwealth’s Unify solution integrates data and systems across wealth, mortgage, and accounting providers, streamlining adviser operations and reinforcing its competitive advantage.

Outlook and Guidance

Netwealth reaffirmed its FY26 guidance, expecting FUA net flows to remain consistent with FY25 levels and an EBITDA margin of approximately 49%, excluding one-off expenses related to the First Guardian compensation. The company anticipates continued momentum into FY27, driven by AI-enabled efficiencies, process automation, and expansion into private wealth and broker segments.

With a strong balance sheet, diversified revenue streams, and ongoing investments in technology and people, Netwealth is well positioned to sustain its growth trajectory and deliver long-term value to shareholders.