Netwealth targeting ‘affluent adviser’ space as net flows increase

Netwealth saw a 5.6 per cent increase in the number of financial advisers utilising the platform in FY2024–25, rising to 3,971 active users.

Speaking on Netwealth’s full-year results webinar on Thursday, Heine said the growing adviser numbers was a “key driver of our business and what gives us a very high level of confidence about our future growth”.

There was also an even greater increase in the number of accounts, which grew 13.3 per cent over the 12 months to 30 June 2025 to 162,234, with the CEO adding that the longer an adviser has been using Netwealth, the greater the net flows from their clients.

“Our installed client base, so those that have been with us since prior to 2022, [funds under administration] grew by 43 per cent and continues to ensure that every year we have significant growth from those existing customers,” Heine said.

“The more recent ones, we also seeing great growth as they start to not only transition their back books and their existing business across to Netwealth, but also with strong organic business. We would expect to see that continue for many years to come.”

A key part of the platform’s strategy, he explained, is targeting what he termed the “affluent adviser” market – those looking after clients with account balances, typically between $500,000 and $750,000.

“Pleasingly, off the back of our strategy, which we can continue to deliver on, we’ve seen really strong growth across all of these key segments,” Heine said.

“But also it’s really important to understand that we are not biased, we’re not leaning towards one or the other. We are making sure that we build solutions for the affluent adviser and also the high-net-worth and ultra-high-net-worth.”

He added that Netwealth is also looking towards the projected 7.2 million Australians that will have more complex financial circumstances by 2050 and will be looking for advice.

“Currently, as it stands, there is somewhere in the vicinity of 10–11,000 advisers that are available to service that number of clients. That means that advisers need to be more efficient. They need to leverage technology better,” Heine said.

“The opportunity for us, as well as the challenge, is to make sure that we can work with our customers and partner with advice firms to make them as efficient as possible, so that they can continue to onboard and manage more and more clients at scale.

“Really, that’s where we see the big benefit and that’s where we’re investing heavily into the future.”

Looking at the overall full-year results, Netwealth saw total income increase of $69.2 million or 27.1 per cent to $324.4 million for FY24–25, while platform revenue grew $66.9 million or 26.8 per cent to $316.4 million.

Net flows hit $15.8 billion, 40.4 per cent higher than FY23–24, resulting in total FUA of $112.8 billion at 30 June and an updated figure of $118.5 billion on 18 August 2025.

Managed account net flows of $4.3 billion represented a 56.5 per cent increase, while trading volumes were also up as the business “expanded the investment capability on the platform”.

EBITDA was also up $38.8 million (31.1 per cent) to $163.5 million, while NPAT was $116.5 million, up 39.8 per cent or $33.2 million.