December 2025 Quarterly Business Update
| Stock | Netwealth Group Ltd (NWL.ASX) |
|---|---|
| Release Time | 22 Jan 2026, 8:25 a.m. |
| Price Sensitive | Yes |
Netwealth Delivers Record Quarterly FUA Inflows
- Total custodial FUA inflows of $8.4B, a second consecutive quarterly record
- Total FUA of $125.6B, up 23.6% on the prior corresponding period
- Record quarter in Managed Account net flows of $1.8B, up 61.4% on the prior year
Netwealth Group Limited, a leading Australian wealth management and technology company, has reported a strong December 2025 quarter. The company recorded total custodial funds under administration (FUA) inflows of $8.4B, a second consecutive quarterly record, demonstrating sustained and increasing momentum in the business. Total FUA at 31 December 2025 was $125.6B, up 23.6% on the prior corresponding period. Total FUA net flows were $4.2B for the quarter, with positive market movement contributing an additional $0.6B. This includes custodial outflows of $0.4B relating to two institutional client accounts that were low revenue-generating FUA. FUA net flows excluding these institutional outflows reached a record $4.6B, or $5.0B excluding pension payments. The company also reported record growth in Managed Account FUM netflows of $1.8B for the quarter, with Managed Accounts FUM up 32.3% on the prior year to $27.5B. The number of accounts increased 2.9% over the quarter and 13.7% over the prior year to 172,221 accounts as at 31 December 2025. Netwealth has also made progress on key strategic initiatives, including the launch of individual HIN offering and Netwealth Private for the high-net-worth and ultra-high-net-worth segments.
For FY26, Netwealth expects FUA net flows to not differ materially from FY25, an EBITDA margin of approximately 49% excluding any impact of First Guardian, investment in capitalised software of approximately $12M, and a charge of $101M to pay compensation to members as an extraordinary expense in the 1H26 accounts.
Netwealth remains in a strong financial position, with high profitability, strong EBITDA margin, high correlation between EBITDA and operating cashflow, very high levels of recurring revenue, and low capital expenditure. The company is well-positioned to respond to any regulatory changes impacting the platform industry.