Netwealth Group Limited: Underlying Growth Overshadowed by One-Off Regulatory Settlement
In 1H26, the Netwealth Group Limited (ASX: NWL) delivered record Funds Under Administration (FUA) of AU$125.6 billion, up 23.6% year-on-year, supported by custodial inflows of AU$16.4 billion and continued expansion in adviser numbers and client accounts. Total income increased 24.7% to AU$193.8 million, while underlying EBITDA rose to AU$96.7 million with a margin of 49.9%. Underlying net profit after tax grew 19.9% to AU$69.0 million, reflecting operating leverage and a broader revenue mix across administration, ancillary, transaction, and management fees.
However, on a statutory basis, the company reported a half-year net loss of AU$2.2 million. This loss primarily reflects the cost of settling with regulators and refunding more than AU$100 million to affected members following the collapse of the First Guardian Master Fund, along with associated legal and professional expenses. After adjusting for this exceptional compensation payment and the associated expenses, the company’s core earnings performance remained robust and reflective of its underlying business strength. Despite the statutory loss, Netwealth maintained robust cash generation and declared a fully franked interim dividend of 21.0 cents per share, underscoring balance sheet resilience and continued confidence in its long-term growth trajectory.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
x
Daily Dose of Buy, Sell & Hold recommendations before the market opens.
Start Your 7 Days Free Trial Now!
We use cookies to help us improve, promote, and protect our services.
By continuing to use this site, we assume you consent to this.
Read our
Privacy Policy
and
Terms & Conditions
Netwealth Group Limited: Underlying Growth Overshadowed by One-Off Regulatory Settlement
In 1H26, the Netwealth Group Limited (ASX: NWL) delivered record Funds Under Administration (FUA) of AU$125.6 billion, up 23.6% year-on-year, supported by custodial inflows of AU$16.4 billion and continued expansion in adviser numbers and client accounts. Total income increased 24.7% to AU$193.8 million, while underlying EBITDA rose to AU$96.7 million with a margin of 49.9%. Underlying net profit after tax grew 19.9% to AU$69.0 million, reflecting operating leverage and a broader revenue mix across administration, ancillary, transaction, and management fees.
However, on a statutory basis, the company reported a half-year net loss of AU$2.2 million. This loss primarily reflects the cost of settling with regulators and refunding more than AU$100 million to affected members following the collapse of the First Guardian Master Fund, along with associated legal and professional expenses. After adjusting for this exceptional compensation payment and the associated expenses, the company’s core earnings performance remained robust and reflective of its underlying business strength. Despite the statutory loss, Netwealth maintained robust cash generation and declared a fully franked interim dividend of 21.0 cents per share, underscoring balance sheet resilience and continued confidence in its long-term growth trajectory.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au