Key Highlights

• Earnings before interest, tax, Depreciation and Amortisation (EBITDA) grew 18.0% to $192.9 million, a Margin of 49.1%.

• That is why funds under administration (FUA) is the key driver: FUA rose 20.3% to $135.7 billion at 30 June 2026, and client accounts rose 12.4% to 182,276.

• Net FUA flows were $3.6 billion, excluding pension payments and key outflows, and net funds under management flows were a record $2.4 billion.

• Together they show record profit and funds under administration, alongside a slower annual growth rate in the latest quarter and an explicit target of $18 billion to $20 billion of net flows in FY27.

What does it take for an Investment platform to keep growing quickly when it already administers well over $100 billion? Netwealth Group (ASX:NWL) offered evidence in two updates: its FY26 results on 26 August 2026 and a September 2026 quarter report in mid-October. Together they show record profit and funds under administration, alongside a slower annual growth rate in the latest quarter and an explicit target of $18 billion to $20 billion of net flows in FY27. For investors, the question is whether that pace can be sustained as the base gets larger.

The FY26 result

Total income rose 20.6% to $391.1 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 18.0% to $192.9 million, a margin of 49.1%. The full-year Dividend rose 9.1% to 42.0 cents per share, including a fully franked final dividend of 21.0 cents.

The First Guardian reference deserves care. The $135.4 million figure excludes them, so it is not directly comparable with statutory profit.

Revenue per account increased 6.7%, which shows that growth came partly from higher balances and fees per client and partly from new accounts. The EBITDA margin of 49.1% is notable, but management guided to a margin of about 47% in FY27 as it increases spending on technology, AI, product development and staff, so margins are expected to fall modestly.

How the platform earns revenue

Netwealth provides investment and Superannuation platforms, plus managed accounts, used mainly by financial advisers, accountants and other intermediaries. It earns administration and other fees, generally based on the funds on its platform, along with transaction fees and, to a lesser extent, interest on client cash. That is why funds under administration (FUA) is the key driver: FUA rose 20.3% to $135.7 billion at 30 June 2026, and client accounts rose 12.4% to 182,276.

Flows matter too: net inflows are the portion of growth the company controls through adviser relationships and product quality. Funds under management in managed accounts, a faster-growing and often higher-margin product, grew 27.9% to $34.6 billion.

The September 2026 quarter

Net FUA flows were $3.6 billion, excluding pension payments and key outflows, and net funds under management flows were a record $2.4 billion. Total funds under management were $36.6 billion, up 24.0%, with managed accounts up 26.0% to $32.4 billion. Net new accounts were 3,822, bringing the total to 186,098, and 21 new financial intermediary relationships took the total to 4,226.

Two points follow. First, annual FUA growth slowed from 20.3% at 30 June to 15.2% at 30 September. Second, quarterly net FUA flows of $3.6 billion annualise to roughly $14 billion, below the FY27 target range of $18 billion to $20 billion, so the target requires acceleration. That arithmetic is an observation, not a forecast, and quarterly flows are uneven. The Dx30 ambition, to double FUA over four years, would require sustained high growth.

Strategy and partnerships

It also launched Netwealth Private and upgraded its managed accounts platform, and an Acquisition of Paradino was expected to close by October 2026. Chief executive Matt Heine called FY26 "an encouraging year for Netwealth."

Competitive position

Netwealth competes with other adviser platforms, including large bank and wealth-group platforms and independent rivals, on features, service and price. Netwealth's strengths are its technology, service reputation and high margins; its challenges are that it competes with larger groups and that fee pressure is a feature of the sector.

Risks and what to monitor

The planned increase in operating spending also reduces the margin cushion.

Key items to watch are the December 2026 quarter flows, the progress of the Morgan Stanley relationship, the completion and contribution of Paradino, the half-year result for the period to 31 December 2026, and whether the 47% margin guidance holds.

Summary

Netwealth's FY26 result shows a profitable, high-margin platform still growing faster than the market, with record flows into managed accounts. The latest quarter shows FUA growth still encouraging but slower than at year-end, and the FY27 flow target implies a step-up. Those figures, together with unresolved questions about First Guardian-related costs, are the key facts for shareholders to follow.