The Netwealth Group Ltd (ASX: NWL) share price is up 12% after the company reported its FY26 half-year result.
Netwealth is a financial services technology company, a superannuation fund trustee and an administration business.
Its financial products and services include superannuation, investor-directed portfolios, managed accounts, managed funds, SMSF administration services and non-custodial administration and reporting services.
Netwealth HY26 result
Here are some of the main numbers from the first six months of FY26:
- Closing funds under administration (FUA) grew 23.6% to $125.6 billion
- Total income grew by 24.7% to $193.8 million
- EBITDA (EBITDA explained) grew 23.9% to $96.7 million
- Net profit after tax (NPAT) grew 19.9% to $69 million
- Interim dividend per share up 20% to $0.21
What happened?
Netwealth said that the strength of these results is demonstrated by the continued growth in its key business drivers.
FUA custodial inflows were $16.4 billion for the half, an increase of 10.7%. Total FUA ended the period at $125.6 billion, up 23.6% (or $24 billion).
Growth was driven by a range of factors, including a 13.7% in the number of accounts to 172,221. There was a 7.3% increase in the number of advisers to 4,089.
Impressively, the average FUA per account increased by 11.4% to $720,000 per account, showing the typical client that it has.
Netwealth’s average cash transaction account balance for the year grew by $1.8 billion to $7.5 billion, which was an increase of 29.7%. This represented 6.2% of custodial FUA.
The ASX share also said that strong revenue growth enabled strategic investment across the business to be brought forward as it accelerates a range of initiatives. Netwealth said that it has invested in its people, product, security and technology capabilities to strengthen its operational capacity and support longer-term growth opportunities.
Netwealth noted that it experienced operating leverage across both of its sales and marketing, and general and administration. These efficiencies were invested in delivery, product and technology such as its individual HIN offering, increased oversight and governance, and scaling of its technology function.
Outlook for Netwealth share price
The business continues to benefit from structural shifts in the industry, with the second-highest platform 12-month net funds flows.
It has also grown its market share by 100 basis points (1.00%) to 9.2% over the period. Netwealth and Hub24 Ltd (ASX: HUB) are growing their market share against legacy platforms. Those legacy platforms have seen their market share decline to 54.3%, down from 55.8% last year.
The growth tailwinds are still there for the business, with significant potential market share gains in the coming years.
It’s not as cheap as it was yesterday. But, it’s still down more than 30% from where it is today. It could be one to watch if its net flows continue to be positive.
