The Netwealth Group Ltd (ASX: NWL) share price has dropped over 2% after the fintech gave a quarterly update.
Netwealth provides financial products such as superannuation, including accumulation and retirement income products, investor-directed portfolio services for self-managed superannuation and non-super investments, managed accounts, SMSF administration and non-custodial administration and reporting services.
Strong FY25 fourth quarter
The company reported that its total FUA reached $112.8 billion at 30 June 2025, an increase of $8.7 billion for the quarter, including $3.8 billion of FUA net inflows and $4.9 billion of positive market movements. The total FUA increased 28%, or $24.8 billion in dollar terms.
The business reported record financial year (for FY25) funds under administration (FUA) net flows of $15.8 billion, which was a 40% increase compared to FY24, or $4.5 billion in dollar terms.
It also reported a record 12-month of FUA net inflows of $29.2 billion.
Another positive update from the fintech company, it said there was a record increase of 6,496 accounts for the quarter, increasing the total number of accounts by 4% over the quarter to 162,234 at 30 June 2025. The account increase was 13% for FY25.
FUM is growing too
In the quarterly update, Netwealth also reported that it delivered a strong funds under management (FUM) performance.
FUM net inflows were $1.1 billion for the quarter, 16% higher than the FY24 fourth quarter. Total FUM increased by $6.5 billion to $27 billion, 32% higher than a year ago.
Is the Netwealth share price a buy?
The company said it remains confident in its net flows outlook for FY26 and beyond, across a broad range of client groups and customer tiers. Netwealth is confident on continued success in attracting new advisers and their clients.
Netwealth also said that its revenue base is highly recurring and well diversified across customer segments, products and revenue sources.
It also boasts of being highly profitable, with a strong EBITDA margin, while also being debt free and having a large cash balance.
However, it has risen more than 50% in the last year, so I wouldn’t call it cheap right now. It has a promising future, but it’s not one of the first ASX growth shares I’d buy today because of the growth it has already achieved.
