The Netwealth Group Ltd (ASX: NWL) share price is in focus today after announcing its FY25 third quarter update.
Netwealth describes itself as a financial services and technology company. It offers financial products like superannuation, investor-directed portfolio services for super and non-super investments, managed accounts, managed funds and SMSF administration.
Quarterly update
The company reported that for the three months to March 2025, funds under administration (FUA) net inflows were $3.5 billion for the quarter, an increase of 29% year on year.
It told investors that in the financial year to date, it has achieved record net flows of $12 billion, an increase of 29% year on year. In the last 12 months, its net inflows were $15.8 billion (up 49% year on year). I think this is an important support for the Netwealth share price.
Netwealth’s total FUA reached $104.1 billion as of 31 March 2025, an increase of $2.5 billion for the quarter, despite $1 billion of negative market movements.
Total FUA grew $19.4 billion in 12 months to 31 March 2025, an increase of 23%.
Netwealth said its total number of accounts increased by 4,301 for the quarter to 155,738 at 31 March 2025. That was a 13% increase over 12 months.
The company also noted that it has a high level of recurring and well-diversified revenue, with complementary correlations that provide stability and resilience in volatile markets.
Outlook for the Netwealth share price
Netwealth in its ASX announcement that it expects FUA net inflows to be “seasonally strong” in the June quarter. Net inflows “continued to remain strong” in April, despite the market volatility.
The company also said it remains confident in its net flows outlook for FY26 and beyond, which is supported by a “robust transition pipeline and new client wins.
Netwealth also said that it is invest in broadening its revenue sources, having diversified over the last two years with fixed income products, a 31-day notice cash fund, an expanded range of term deposit providers and annuities, a strategic partnership with iCapital and new trading functionality on the platform.
Considering the Netwealth share price is down from 19 February 2025, this could be the right time to invest, even after the jump. Its ongoing FUA growth is very promising, in my opinion.
