Netwealth Group Limited (ASX:NWL) Achieves Record FUA Net Flows in Q2 2025
Financial Performance
Netwealth Group Limited reported record Funds Under Administration (FUA) net flows of $15.8 billion for the financial year 2025, a 40% increase compared to FY24. The company also achieved record 12-month FUA inflows of $29.2 billion.
Quarterly Highlights
For the June 2025 quarter, total FUA reached $112.8 billion, an increase of $8.7 billion. This includes $3.8 billion in FUA net flows and $4.9 billion from positive market movement. Additionally, Netwealth saw a record increase of 6,496 accounts, bringing the total to 162,234 by 30 June 2025, reflecting a 13% rise for FY25.
Funds Under Management
Netwealth delivered strong Funds Under Management (FUM) net flows of $1.1 billion for the quarter, a 16% increase from the prior corresponding period. Total FUM grew by $6.5 billion to $27.0 billion, up 32% year-on-year. Managed Account products were the primary drivers, contributing 96% of all FUM net flows.
Business Update and Outlook
In June, Michael Wachtel was appointed as an independent non-executive director and future Chair, enhancing the Board’s strategic expertise. Netwealth received top ratings in the 2025 Money Management Advice Tech Review Survey and the Investment Trends Adviser Technology Needs Report June 2025. The company continues to invest in platform enhancements, adding new private label model suites and initiating trading in structured products. Netwealth remains confident in its net flows outlook for FY26 and beyond, supported by a diversified and recurring revenue base.
Financial Position
Netwealth maintains a strong financial position with high profitability, a strong EBITDA margin, debt-free status, and significant cash reserves. The company’s revenue is highly recurring and diversified across customer segments and revenue sources, providing stability and resilience in various market conditions.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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