$2.40bn FUM and 354,202 customers headline Raiz Q1 update

FUM growth reaches $2.40 billion

Raiz Invest Limited (ASX:RZI) entered FY27 with its operating growth intact, but a significant unknown still hanging over the business: the company cannot yet reliably estimate the financial impact of historical tax matters under external expert review and regulator engagement.

The underlying platform expanded during the three months to 30 September. Active Customers rose 5.6% year on year to 354,202, while funds under management increased 20.2% to $2.40 billion. Net flows added $69 million, although that was 9.2% lower than a year earlier. Raiz said recurring deposits remained relatively steady, with one-off deposits and withdrawals more exposed to consumer sentiment.

“Total FUM of $2.4b was up 20.2% YOY and 3.4% QOQ.”

Caption and image © Raiz Invest Limited. From “Q1 FY27 Quarterly Business Update”, 30 Oct 2026.

Average account balances rose 13.8% to $6,776 and annualised revenue per user increased 2.9% to $86.69. The customer base was broadly stable into late October, with 353,872 Active Customers and $2.38 billion in FUM recorded on 29 October.

Kids and Lite products lead customer expansion

The strongest growth came from products aimed at younger or newer investors. Kids portfolios rose 24.6% year on year to 73,957, while Kids FUM jumped 42.7% to $132.3 million. Raiz said the product was supported by parents and grandparents and represented a potential pipeline of future customers.

Lite portfolios increased 631% year on year to 10,089, although that comparison starts from a relatively small base. The product also grew 17.7% quarter on quarter. Plus FUM increased 27.4% to $441.3 million and accounted for 18.4% of total FUM, while Super FUM rose 21.9% to $508.7 million.

Transformation spending meets tax uncertainty

Raiz is also reshaping the business under its Transformation Program, which targets customer acquisition and lifetime value, brand positioning, AI-enabled engagement and broader wealth-platform capabilities. The program follows Craig Keary's CEO appointment, with the company prioritising leadership capability, internal processes and customer engagement.

One-off costs associated with the program were approximately $0.5 million by the end of September. That figure is disclosed, but the more material financial variable remains unresolved: Raiz said its board is not yet able to reliably estimate potential liabilities or other impacts from the historical tax matters. The company said further updates would come as the external review and regulator engagement progress.

US product development moves ahead

Product development is focused first on US-listed equities and ETFs, with direct ASX trading to follow thereafter. The roadmap echoes the AI and trading roadmap previously outlined by Raiz, although this quarter's update offers no launch date or financial contribution for the initiatives.

“Net flows were $69m, up 27.8% QOQ and down 9.2% YOY.”

The quarterly figures are unaudited, and Raiz does not report revenue, profitability or cash flow in its business updates. The next meaningful test will therefore be whether customer retention and net flows remain resilient while the tax review produces a clearer estimate of the potential cost and the transformation program moves from diagnosis into execution.