Netwealth FY26 Adjusted NPAT Up 16.2% to $135.4m

Netwealth (ASX:NWL) Group reported FY26 total income of $391.1 million, up 20.6% on FY25, and adjusted EBITDA of $192.9 million, up 18.0%, on a basis that excludes First Guardian expenses. Adjusted net profit after tax was $135.4 million, up 16.2%, and adjusted earnings per share 55.2 cents, up 16.0%. Statutory net profit after tax was $60.6 million, down 48.0%; the adjusted figures exclude a $71 million post-tax charge for compensation paid to members of the Netwealth Superannuation Master Fund who suffered loss through the collapse of the First Guardian Master Fund and a $3 million post-tax charge for related legal and professional fees, which the release states as a $100.7 million compensation payment and $4.5 million of associated legal and consulting fees before tax. The EBITDA margin was 49.3%, or 49.1% excluding a non-recurring gain from the reversal of contingent consideration on the acquisition of Flux, which Netwealth said was in line with guidance. The Board declared a fully franked final dividend of 21.0 cents per share, taking total dividends declared for FY26 to 42.0 cents per share, up 9.1%.

Platform revenue increased 21.0% to $382.9 million, with ancillary fee income up 26.0%, management fee income up 28.5%, transaction fee income up 21.5% and administration fee income up 15.0%. Also excluding First Guardian expenses, total operating expenses rose 23.1% to $198.2 million, with employee benefits expenses including share-based payments of $136.2 million up 23.3% and operational headcount, which Netwealth says includes the indirect workforce provided by its technology partner in Vietnam, reaching 911 at 30 June 2026, an increase of 194 or 27.1%. Total funds under administration closed FY26 at $135.7 billion, up 20.3%, on record custodial inflows of $32.3 billion, while total FUA net flows were $15.4 billion, down 2.0% on FY25; the company said inflows softened in the last six weeks of the year and outflows in larger accounts were elevated, and that management believes those impacts were largely temporary. Client accounts rose 12.4% to 182,276 and financial intermediaries rose 5.9% to 4,205. Netwealth reported total FUA of $138.8 billion as at 21 August 2026. For FY27 it anticipates FUA net flows of $18 billion to $20 billion and an EBITDA margin of approximately 47% excluding First Guardian and RISE program impacts, subject to normal market and trading conditions and assuming no material adverse changes in market sentiment, economic conditions or the regulatory environment.