Netwealth shares slide as UBS says FY26 guidance will 'underwhelm'
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More news: Investment platform Netwealth saw its shares lower after UBS analysts were downbeat on its outlook for the 2026 financial year.
Shares were down 2.3% to $35.19 at 12:20pm AEST, having added 51.8% over the last 12 months.
UBS analysts said Netwealth's FY26 guidance will "underwhelm" due to a flat flows outlook and higher-than-expected operating expenditure growth.
They also noted that second-half profits in FY25 were "a touch soft" compared to consensus forecasts, driven by "slightly higher costs" during the period.
Netwealth sees 40% leap in full-year profit and hikes dividend
The news: Investment platform Netwealth saw a 39.8% uptick in net profit for the 2025 financial year after delivering record 12-month inflows.
The numbers: The company reported net profit after tax of $116.5 million, up from $83.4 million in FY24, and shy of analyst estimates of $117 million, according to Visible Alpha data.
Total income was up 27.1% to $324.4 million, from $255.2 million a year earlier, after the group notched annual inflows of $15.8 billion for the full year. This took overall funds under administration to $112.8 billion at June-end, as previously announced, while FUA was up to $118.5 billion as at 18 August.
Netwealth will pay a full-year dividend of 38.5 cents per share, up from 28 cents per share last year, and higher than the 38 cents per share expected by analysts.
The context: The company said it expects FUA net flows in FY26 to "not differ materially from FY25", with total operating expense growth in line with the prior year.
The sources: ASX, UBS research
