Netwealth shares surge 12% as record inflows power earnings growth

Netwealth Group Ltd (ASX: NWL) shares have jumped 12% as at the time of writing on Wednesday after the wealth platform provider delivered a standout half-year result, highlighted by record inflows and strong double-digit revenue growth.

Prior to the announcement, Netwealth shares had underperformed the broader S&P/ASX 200 Index (ASX: XJO) and were down almost 30% over the past 12 months.

Today's result and the share price reaction are therefore a welcome boost for investors who were eager to see evidence that Netwealth's growth momentum remains firmly intact.

Revenue and earnings power ahead

Netwealth reported total income of $193.8 million for the half, up 24.7% on the prior corresponding period. EBITDA rose 23.9% to $96.7 million, with margins holding near 50%, underscoring the operating leverage in the platform model.

Net profit after tax increased 19.9% to $69 million, while earnings per share climbed 20.5% to 28.1 cents. The company also declared a fully-franked interim dividend of 21 cents per share, up 20%.

While operating expenses rose 25.5% to $97.1 million due to continued investment in people, technology, and governance, margins remained resilient. That balance between growth and reinvestment appears to have reassured the market.

Record inflows drive platform growth

The real highlight however was flows.

Netwealth delivered record half-year custodial inflows of $16.4 billion, up 10.7%. Funds under administration (FUA) surged 23.6% to $125.6 billion, reflecting both strong net flows and positive market movements.

Managed account net flows rose 42.7% to $3.4 billion, while total funds under management climbed 30.6% to $31.4 billion. Client accounts increased 13.7% to 172,221, and the number of advisers using the platform rose 7.3% to 4,089.

These metrics point to continued structural gains in market share, particularly as advisers shift toward technology-led, scalable platforms.

Foolish bottom line

Netwealth has consistently positioned itself as a beneficiary of multiple long-term industry shifts, including the consolidation of legacy platforms and the rising demand for user-friendly and integrated wealth technology.

With strong revenue growth and margins holding near 50%, investors are seeing the strength of this business and its sustained inflow momentum.

Growth remains strong, flows are setting records, and for now, Netwealth's competitive position appears to be strengthening.

The post Netwealth shares surge 12% as record inflows power earnings growth appeared first on The Motley Fool Australia.

Motley Fool contributor Kevin Gandiya has no positions 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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