Netwealth has reported a strong December half result, according to RBC Capital Markets analyst Wei-Weng Chen. The company saw low single-digit beats across revenue, EBITDA, PBT, and dividends. Netwealth is a financial services company that provides investment management and administration services. It offers a platform for financial intermediaries and their clients.
EBITDA margins aligned with market forecasts, boosted by a $1.5 million gain from the revaluation of contingent consideration tied to the Flux acquisition. The underlying margin stood at 49.5 per cent. The accounts factored in a $101.7 million First Guardian impact, recognised as a liability at the end of the reporting period, with cash payment scheduled for January 2026.
The company reiterated its guidance for the 2026 fiscal year, projecting EBITDA margins of approximately 49 per cent, consistent net inflows, a $12 million investment in capitalised software, and dividends based on earnings excluding the First Guardian impact.
Following the announcement, shares in Netwealth experienced a significant increase, last trading up by 10.9 per cent, reflecting positive investor sentiment in response to the company’s performance and outlook.
