Raiz Invest Nearly Doubles EBITDA as CEO Keary Takes Helm

Profitability Returns with Revenue and Customer Growth

Raiz Invest Limited (ASX:RZI) has delivered a strong FY26 performance, reporting a 21.4% increase in revenue to $29.2 million and an almost doubling of underlying EBITDA to $5.46 million. This surge propelled the company back into the black with a statutory net profit after tax of $3.54 million, reversing a loss in the prior year. Active customers grew by 6.7% to 351,362, while funds under management (FUM) expanded 27.5% to $2.32 billion, reflecting both healthy net inflows and positive market movements.

The average revenue per user (ARPU) rose 13.5% to $85.87, boosted by a fee increase implemented in August 2025 and growth in higher-margin products such as Raiz Plus and Raiz Super. The company’s operating leverage was evident, with underlying operating expenses increasing only 11.9%, supporting an improved EBITDA margin of 18.7% compared to 11.8% in FY25.

Leadership Transition and Strategic Focus

June 2026 saw Craig Keary step in as CEO, succeeding Brendan Malone who departed after laying foundational growth. Keary brings over 30 years of experience in financial services and digital investing, with a mandate to sharpen execution and scale the business sustainably. Under his leadership, Raiz is accelerating a Transformation Program aimed at evolving from a micro-investing platform into a broader wealth management ecosystem.

The program targets enhancing customer acquisition and lifetime value, repositioning the brand, deploying AI-enabled customer engagement tools, and enabling a broader wealth platform with new product launches including US-listed equities, ETFs, and direct ASX trading planned for FY27. Raiz is also actively exploring strategic M&A opportunities to expand distribution and product capabilities.

Product Innovation and Customer Engagement

Raiz continues to deepen customer engagement with innovations like Raiz Lite for first-time investors and Raiz Academy to improve financial literacy. The company’s Kids portfolios grew 26.2%, Plus portfolios 19.5%, and Super customers 13.1% over the year, underscoring multi-product adoption. Recurring deposits remain steady, driving a 19.5% increase in average account balances to $6,609.

Recognition from WeMoney with awards for Round-Up Investing, Kids Investing, and Superannuation innovation affirms Raiz’s market position. The company’s commitment to accessible investing is resonating strongly with younger demographics, including Gen Z, who are adopting regular, technology-enabled saving and investing habits.

Robust Balance Sheet and Cash Flow

Raiz ended FY26 with $15.4 million in cash and no interest-bearing debt, supported by positive operating cash flows of $5.1 million, up 30% year-on-year, and free cash flow of $2.7 million. The company’s strong capital position underpins its investment in growth initiatives and operational resilience.

Non-recurring expenses of $1.3 million related to CEO transition and corporate advisory options were excluded from underlying EBITDA, providing a clearer view of ongoing profitability.

Governance and Remuneration Alignment

Raiz maintains robust corporate governance with a board comprising experienced independent directors. The remuneration framework for key management personnel aligns closely with performance, balancing fixed pay with short-term incentives and long-term performance rights tied to total shareholder return and earnings per share hurdles. The FY26 remuneration report reflects the leadership transition and includes retention incentives to maintain executive continuity during transformation.

The auditor’s report confirmed the financial statements are free from qualification, reinforcing confidence in the reported results.