• Record quarterly FUA net inflows of $4.5 billion, up 69.8% YoY
• Record 12-month FUA inflows of $27.3 billion and FUA net inflows of $15.0 billion, up 57.2% YoY
• FUA reached $101.6 billion, up 30.2% YoY

Netwealth Group Limited (ASX: NWL), a leading Australian wealth management and technology company, has provided its business update for the December 2024 quarter. The company reported record quarterly FUA net inflows of $4.5 billion, 69.8% higher than the prior corresponding period (PCP), beating the previous record level of $4.0 billion achieved in the September 2024 quarter. FUA net inflows for the 12 months to 31 December 2024 were a record $15.0 billion, 57.2% higher than PCP. Total FUA at 31 December 2024 was $101.6 billion, an increase of $6.2 billion for the quarter and $23.6 billion, or 30.2%, for the calendar year. The total number of accounts increased by 4,272 for the quarter, to 151,437 accounts at 31 December 2024, a 14.0% increase in accounts for the calendar year. Netwealth also delivered significant product enhancements to clients, including improvements to its platform user interface, mobile app, adviser workflows, and the suite of managed models. The company's non-custodial product offering, launched in March 2023, increased by 204.2% over the 12 months to 31 December 2024 to reach $694 million, with non-custodial FUA net inflows for the December quarter of $71 million, 47.1% higher than the PCP. Funds Under Management (FUM) increased by $1.5 billion during the quarter, to $24.0 billion at 31 December 2024, including FUM net inflows of $1.2 billion for the quarter. The Managed Account balance was $20.8 billion at 31 December 2024, a 7.0% or $1.4 billion increase for the quarter, with net inflows of $1.1 billion.

Netwealth expects a modest percentage increase in the rate of expense growth in FY2025 compared to FY2024, in addition to the operational costs of the Xeppo and Flux acquisitions.

Netwealth is confident in its inflows outlook for the remainder of FY2025, despite expecting seasonally lower Q3 FY2025 flows. The company 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, low capital expenditure, debt-free status, and significant cash reserves.