Highlights

  • NWL’s total Funds Under Administration (FUA) increased 26.6% to USD 120.8B year-on-year.
  • Q1 FY26 FUA net flows reached USD 4.1B, supported by Managed Account expansion.
  • Partnership with FinClear to enable individual HIN administration and trading access.

Netwealth Group Limited (ASX:NWL) has released its business update for the quarter ended 30 September 2025, reporting growth across Funds Under Administration (FUA) and all key products.

FUA at the end of the quarter reached USD 120.8B, up 26.6% from the prior corresponding period. The September quarter saw FUA increase by USD 8.0B, driven by USD 4.1B in net flows and USD 3.9B from market movement.

The company recorded its highest-ever net flow for the first quarter at USD 4.1B. Excluding pension payments of USD 0.3B, net flows totaled USD 4.4B. Managed Account net flows hit a record USD 1.6B, a 49.4% increase from the previous quarter.

Non-custodial FUA exceeded USD 1.0B for the first time, reflecting an 82.4% rise compared with the prior year. The total number of accounts grew by 5,146, reaching 167,380, a 3.2% increase for the quarter.

Funds and Account Growth

Funds Under Management (FUM) reached USD 29.5B, up 31.3% on the prior year. Managed Account FUM rose to USD 25.7B, up 32.6%, while Managed Funds FUM increased to USD 3.8B, up 23.0%.

During the quarter, the Managed Account platform added 44 new models, with the segment’s FUM representing 21.3% of total FUA, compared with 20.3% a year ago. Cash transaction accounts averaged 6.5% of custodial FUA during the quarter, ending at 6.0%.

Strategic Initiatives

Netwealth established a partnership with FinClear, a market infrastructure provider, to enable individual HIN administration and trading access for investors and advisers. This service will be rolled out progressively and is designed to streamline trade reporting and execution through Netwealth’s platform or advisers’ existing systems.

CEO and Managing Director Matt Heine commented:

“We’re excited to be adding individual HIN administration and reporting for our users, as part of our mission to continuously improve efficiencies, user experiences and customer options as we expand our platform to service greater segments of the Australian wealth management industry including stockbrokers and HNW firms.”

“When we set out to bring this additional offering to customers, FinClear was the clear choice of provider. We have tried and tested its proprietary tech, expertise and flexibility, and we knew it would be a straightforward and efficient process.”

Additional initiatives during the quarter included the upcoming Netwealth Private service, tailored for high-net-worth and ultra-high-net-worth clients, and a new trading service for domestic and international bonds.

Outlook

Netwealth reaffirmed its FY26 guidance, expecting FUA net flows to be broadly in line with FY25. Total operating expense growth (excluding First Guardian matters) is expected to be consistent with the previous year. Investment in capitalised software is projected to rise by around USD 1M over the 2H25 run rate.

The company reported continued profitability, with a high EBITDA margin, strong operating cash flow, predictable recurring revenue, and a debt-free balance sheet.

Share Performance

The company is currently trading at AUD 30.90 and up by 0.83% from its previous close of AUD 30.64.