Netwealth Group (NWL) H1 2026 earnings summary

Executive summary

• Achieved record half-year results for 2026, with FUA up 23.6% to $125.6B and strong inflows from new and existing clients.

• Statutory net loss of $2.2M due to a $100.7M one-off compensation expense and $1.0M legal costs related to the First Guardian Master Fund collapse; excluding these, net profit was $69.0M, up 19.9%.

• Total income rose 24.7% to $193.8M, and EBITDA increased 23.9% to $96.7M, with an adjusted margin of 49.9%.

• Number of client accounts grew 13.7% to 172,221, and adviser base expanded 7.3% to over 4,000.

• Continued investment in technology, AI, and product innovation, positioning the business for future growth.

Financial highlights

• FUA grew 23.6% year-over-year to $125.6B; net flows for the period were $8.2B.

• Platform revenue up 25.3% to $189M, with management fee income up 30% and ancillary fees up 36.5%.

• Adjusted EBITDA was $96.7M, up 23.9%, with an EBITDA margin of 49.9%.

• Adjusted EPS increased 20.5% to 28.1 cents; interim dividend increased 20% to 21 cents per share, fully franked.

• Free cash flow before tax increased 27.3% to $90.3M; cash conversion ratio at 99.7%.

Outlook and guidance

• FY26 FUA net flows expected to be similar to FY25; EBITDA margin guidance at approximately 49% (excluding First Guardian expenses).

• Dividend policy remains based on earnings excluding First Guardian impacts.

• Management remains optimistic about future flows and market share gains, supported by demographic trends and new product launches.

• Strong business momentum continued into 2H26, with QTD netflows of $1.6B and FUA at $127.3B as of 16 February 2026.

• Strategic focus on governance, technology, and expanding high net worth offerings.