Investors are cheering Netwealth Group Ltd (ASX: NWL) today, with the company's shares pushing higher on the back of a strong quarterly business update — and some extra tailwinds from a surging Nasdaq overnight.
At the time of writing, the ASX 200 tech stock is up 10% to $24.93.
The investment platform provider released its March 2025 quarter update this morning, and it's packed with impressive growth figures that suggest the business is firing on all cylinders.
Netwealth reported $3.5 billion in net flows for the quarter, up 29% on the prior corresponding period, and a new third quarter record. For the financial year to date, net flows now stand at a massive $12 billion, up 61% compared to last year.
The ASX 200 tech stock's total funds under administration (FUA) hit $104.1 billion at 31 March, after growing by $2.5 billion during the quarter. That's despite $1 billion in negative market movement, highlighting the strength of new inflows even in volatile conditions.
Zooming out, Netwealth has added $19.4 billion in FUA over the last 12 months, marking a 23% increase year-on-year.
The number of accounts also continues to climb, with a net increase of 4,301 during the quarter, taking the total to 155,738 — a 13% rise over the past year.
One of the standout features of the update is how well Netwealth continues to perform despite market volatility.
The company credits this to several factors, including a high level of recurring and diversified revenue, resilient trading volumes and robust cash account balances, a wide spread of customers across high net worth, mass affluent, and emerging investor segments.
The ASX 200 tech stock is also benefiting from growing demand for managed accounts, which allow financial advisers to rebalance portfolios efficiently during periods of volatility — a key differentiator in today's choppy market.
Looking ahead, Netwealth expects seasonally strong net flows in the June quarter, with April already off to a solid start. The company says it remains confident in its outlook for FY 2026 and beyond, thanks to a strong transition pipeline and new client wins.
It is also continuing to invest in growth, with new products, partnerships, and platform features all helping to diversify its revenue base.
Management highlights that its balance sheet remains rock solid, with the company debt-free, highly profitable, and holding significant cash reserves.
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