Netwealth Group Limited (ASX: NWL) has delivered a standout first-half FY26 result, reporting record funds under administration (FUA), strong revenue growth, expanding margins and a higher fully franked dividend.
The Company announced its 1H26 financial results on 18 February 2026, highlighting sustained business momentum, structural industry tailwinds and accelerating strategic initiatives. The market responded positively, with NWL shares rising 13.58% to $25.35. Netwealth’s market capitalisation now stands at approximately $6.22 billion.
Record FUA Growth Drives Revenue Expansion
Netwealth reported custodial inflows of $16.4 billion for 1H26, up 10.7% on the prior corresponding period (PCP). Total FUA closed at $125.6 billion, representing a 23.6% increase on 1H25.
As at 16 February 2026, FUA stood at $127.3 billion, including quarterly net flows of $1.6 billion.
Key FUA metrics include:
- Total FUA: $125.6B (+23.6%)
- Custodial inflows: $16.4B (+10.7%)
- Total FUA net flows: $8.24B
- Managed Account net flows: $3.4B (+42.7%)
- Accounts: 172,221 (+13.7%)
- Financial intermediaries: 4,089 (+7.3%)
Importantly, this marks the first time the Company has added more than 20,000 accounts over a 12-month period.
Matt Heine, CEO and Managing Director of Netwealth, commented: “Netwealth enters this half with strong momentum, continued business growth, and increasing traction across the market and a strong pipeline of new opportunities.”
Figure 1: Netwealth Group Limited 1H26 financial results highlights [Netwealth Group Limited]
Revenue Climbs 25% as Platform Strength Broadens
Netwealth generated Platform Revenue of $189.0 million, up 25.3% on PCP. Total Income increased 24.7% to $193.8 million.
All major fee categories delivered growth:
- Ancillary fee income: +36.5%
- Management fee income: +30.0%
- Transaction fee income: +21.6%
- Administration fee income: +15.8%
Ancillary income now represents 41.2% of Platform revenue, highlighting the broadening of the revenue base.
The annualised earn rate was 31.1 basis points, marginally lower than 31.4 basis points in 1H25.
The Company stated: “We have continued to invest in our technology, governance, data and product capabilities that underpinned the platform. We are seeing the benefits to our customers as they increase efficiency across their businesses and excited to be launching our new Private Wealth and individual HIN solution.”
Profitability and Cash Generation Remain Strong
Netwealth reported:
- EBITDA: $96.7M (+23.9%)
- EBITDA margin:9%
- NPAT: $69.0M (+19.9%)
- NPAT margin:6%
- Earnings per share:1 cents (+20.5%)
The cash flow conversion ratio stood at 99.7%, with pre-tax operating net cash flow of $96.5 million.
The Board declared a fully franked interim dividend of 21.0 cents per share, up 20% on PCP. The ex-dividend date is 4 March 2026, with payment scheduled for 26 March 2026.
Two non-recurring items were excluded from earnings analysis:
- $100.7M compensation payment relating to First Guardian.
- $1.0M in associated legal and professional fees.
Strategic Investments Support Long-Term Growth
Operating expenses increased 25.5% to $97.1 million, reflecting strategic investment in people, product, governance and technology.
Operational headcount reached 791 at 31 December 2025, up 19.1%.
The Company highlighted that revenue growth enabled it to accelerate initiatives across Delivery and Product & Technology functions.
On artificial intelligence, management stated: “AI continues to play an important role in Netwealth’s broader strategy. The company views AI as an enabler that helps simplify workflows and ultimately will create further capacity. Over time, AI will help make financial advice more accessible and more personalised, supporting advisers as they work with a wider range of Australians.”
Market Share Gains Amid Industry Shifts
Netwealth continues to capitalise on structural changes across the wealth management sector.
According to Plan for Life industry analysis to 30 September 2025:
- Netwealth delivered the second-highest platform 12-month net funds flows.
- Market share increased 100 basis points to 9.2%.
- Specialist platforms gained share against legacy providers, whose market share declined to 54.3%.
The Company noted: “The business has also benefited from continued positive momentum in the platform and superannuation markets, with recent independent data highlighting a shift toward technology-forward, high service providers. This reinforces the company’s long held view that ongoing investment in technology delivers meaningful advantages for advisers and their clients. As larger institutions continue to work through the challenges of legacy systems, Netwealth’s ability to adapt and innovate remains a key differentiator.”
Netwealth also received recognition in the Investment Trends platform excellence awards, winning:
- Best in Transaction Tools
- Best in Service
- Most Enhanced (2025)
Expanding Private Wealth and Broker Capabilities
During 1H26, Netwealth advanced several key initiatives:
- Soft launch of its Individual HIN solution
- Onboarding of first broker clients
- Strategic partnership with FinClear
- Expansion of Unify integration capabilities
- Launch of fully digital IDPS account opening
- Automated super-to-pension transfer tool
The Individual HIN solution enables brokers to deliver whole-of-wealth offerings by integrating directly held assets within the Netwealth platform.
The Company also confirmed that Netwealth Private, designed for UHNW and Family Office clients, remains on track for rollout to select advice groups.
Also Read: NAB Capital Strength Q1 2026 Shows Stable Buffers Amid RWA Growth
Business Momentum Continues
Netwealth reported growth across core operating indicators:
- FUA, inflows and net flows
- Conversion rates across customer segments
- New adviser and licensee relationships
- Additional accounts opened
- Expansion of business pipeline
The Company outlined its strategic priorities:
- Reduce reliance on third-party systems
- Increase share in the affluent advice market
- Expand wholesale distribution into institutional, UHNW and Family Office segments
- Support an intelligent and AI future powered by data and infrastructure
Management reaffirmed FY26 guidance, stating FUA net flows are expected not differ materially from FY25, subject to normal market and trading conditions.
Share Price Snapshot
As at the latest ASX trading session:
- Last price: $25.35
- Daily change: +$3.03 (+13.58%)
- 1-week performance: +4.32%
- 1-year performance: -20.23%
- Market capitalisation: $6.22B
While 12-month performance reflects broader market conditions, the strong 1H26 result appears to have restored investor confidence.
Figure 2: Netwealth share price performance in the last 3 months [ASX]
Investors Outlook
Netwealth enters the second half of FY26 with:
- Record FUA
- Strong revenue diversification
- Expanding managed account flows
- Strategic AI integration
- Growing presence in UHNW and broker segments
The Company continues to invest deliberately in technology, governance and product innovation to sustain long-term competitive advantage.
With structural industry shifts favouring specialist, technology-led platforms, Netwealth appears well positioned to capture additional market share. The successful rollout of Individual HIN services and Netwealth Private could further strengthen its presence in the private wealth and broking markets.
If FUA momentum continues and operating leverage remains disciplined, investors may see sustained earnings growth through FY26 and beyond.
