Raiz Invest Surges with 24% Revenue Growth and $3.5M Profit in H1 FY26
Raiz Invest Limited reported a robust half-year performance for the period ending 31 December 2025, with revenue climbing 23.9% and a return to profitability driven by increased customer engagement and funds under management.
- Revenue increased 23.9% to $14.4 million
- Underlying EBITDA rose 270% to $2.6 million
- Active customers grew 5.7% to 336,048
- Funds under management surged 28.5% to $2.07 billion
- Statutory net profit after tax of $3.52 million includes $2.68 million deferred tax benefit
Strong Financial Momentum
Raiz Invest Limited (ASX: RZI) has delivered a compelling turnaround in its financial results for the half-year ended 31 December 2025. The company reported revenue of $14.4 million, up 23.9% from the previous corresponding period, alongside a striking 270% increase in underlying EBITDA to $2.6 million. This performance marks a significant step forward from the prior half-year loss and reflects the success of Raiz's ongoing product innovation and customer acquisition strategies.
Customer Growth and Engagement Drive Results
Active customers increased by 5.7% to 336,048, while funds under management (FUM) surged 28.5% to $2.07 billion. The annualised revenue per user (ARPU) also rose 16.4% to $86.45, indicating deeper engagement and higher value per customer. These metrics underscore Raiz's ability to attract and retain users on its mobile-first micro-investing platform, which offers diversified portfolios and property investment opportunities through its managed funds.
Profitability Boosted by Operational Efficiency
The company’s underlying net profit before tax turned positive at $838,000, compared to a loss of $1.02 million in the prior period. Statutory net profit after tax was $3.52 million, boosted by a non-cash income tax benefit of $2.68 million from the recognition of deferred tax assets. Operating expenses rose modestly by 8%, reflecting investments in staff and technology, but were more than offset by revenue growth. Notably, marketing expenses fell sharply by 31.9% following the end of a non-cash advertising arrangement, suggesting a shift toward more cost-effective customer acquisition methods.
Strong Cash Position and Capital Management
Raiz maintained a healthy cash balance of $14 million at period end, with no interest-bearing debt. Operating cash flow improved 51.4% to $2.36 million, supporting a free cash flow of $1.05 million. The company also complied fully with regulatory capital requirements, reinforcing its financial stability as it continues to scale.
Strategic and Operational Outlook
Raiz’s management highlighted ongoing efforts to enhance customer experience, innovate product offerings, and build scalable technology infrastructure. The cancellation of 438,058 unquoted performance rights post-reporting period signals potential adjustments in incentive structures. While no dividends were declared, the company’s improved profitability and strong growth metrics position it well for future expansion in the competitive Australian fintech landscape.
Bottom Line?
Raiz’s half-year results mark a clear inflection point, but sustaining growth amid evolving market dynamics will be key to watch.
Questions in the middle?
- Will Raiz maintain its momentum in customer growth and ARPU amid rising competition?
- How will the cessation of the Seven West Media advertising arrangement impact future marketing effectiveness?
- What strategic changes might follow the cancellation of performance rights and how will they affect management incentives?
