Netwealth CEO Matt Heine on market share, margins and another four years of growth

Netwealth (ASX: NWL) delivered another strong result in FY26, with funds under administration (FUA) rising 20% to $135.7 billion and revenue increasing 21%.

Adjusted EBITDA rose 18% to $192.9 million, with an adjusted EBITDA margin of 49.1%.

CEO and Managing Director Matt Heine described FY26 as a “two-tiered year”.

First Guardian created significant challenges for Netwealth and affected members, with the company compensating customers at the end of December. At the same time, the underlying business continued to grow strongly.

“The quality of the platform, the quality of the product and our expanding user base has really been the key to continuing to drive the growth of the business.”

In the interview above, Heine discusses the source of Netwealth’s market share gains, why management expects net flows to accelerate in FY27, and why it is prepared to accept a lower EBITDA margin while investing in the next stage of growth. 

Technology alone isn’t enough

Netwealth now has just under 10% of the Australian platform market. Together with one other major provider, it accounts for around 80% of industry net flows.

Heine attributes that performance to a combination of platform capability and service.

“There’s no point having fantastic technology if you don’t have a service to support it. Equally, you have to have great service, but if the technology is not up to scratch you’re not going to win either.”

Netwealth has spent almost 26 years investing in its core platform, then adding services and capabilities aimed at different adviser segments.

Its current focus includes affluent advisers, as well as high-net-worth and private wealth advisers and brokers.

Heine says some of the capabilities built five, 10 or 15 years ago remain relevant today, with newer services added on top of that base.

Why Netwealth expects flows to accelerate

Netwealth recorded $15.4 billion of net flows in FY26 and is guiding to between $18 billion and $20 billion in FY27.

Heine says the forecast is based on a bottom-up assessment of existing clients, the sales pipeline, expected conversions and upcoming adviser or licensee transitions.

Around 80% to 90% of annual net inflows come from existing customers, according to Heine.

“Those advisers that have been on the platform for many years in many cases are writing on average 15% to 20% new business year on year.”

That gives Netwealth some visibility over future flows before new clients are included.

Recent wins include Morgan Stanley Wealth Management Australia.

Heine said that, seven weeks into FY27, management had a “high level of confidence” in the $18–20 billion guidance range.

Investing rather than maximising margins

Netwealth’s adjusted EBITDA margin was 49.1% in FY26, but management is guiding to around 47% in FY27.

Operating expenses increased 23.1% in FY26, ahead of revenue growth of 20.6%, as Netwealth reinvested in product, technology and service.

Heine said the company’s existing margin gives management room to keep spending on growth.

“When margins are as high as ours are, it’s really important that we do keep investing back into the product.”

Netwealth has set an ambition to double FUA again by FY30. Heine said the company expects to keep investing while it sees attractive opportunities to grow, rather than prioritising the highest possible near-term margin.

He also noted that management can make those capital allocation decisions each year. Additional efficiency can be reinvested, returned to investors or passed back to customers through pricing.

Still plenty of market left

Netwealth has been taking share from legacy platforms for years, but Heine argues the addressable market remains large.

The Australian platform market is worth around $1.2 trillion and Netwealth has just under 10% share.

Beyond that market, the company sees further opportunities in superannuation, private wealth and broking.

Heine pointed to around $600 billion held in superannuation accounts with balances above $500,000. People with larger balances are also more likely to need advice across areas such as mortgages, insurance, estate planning and intergenerational wealth.

Netwealth is developing its platform to bring more of that financial information together, including superannuation, investment accounts, bank accounts and property valuations.

It is also expanding further into high-net-worth, ultra-high-net-worth and broking markets.

“We’ve probably served about 2% of the market.”

Netwealth has doubled FUA over the past four years, with compound annual growth of around 25%.

Heine said another doubling over the next four years would require annual growth of around 19%, which compares with market growth of roughly 5% before any further gains in share or expansion into adjacent markets are considered.

What changed after First Guardian

Heine described First Guardian as a challenging period for both Netwealth and affected members.

Over the past eight months, Netwealth has expanded its research team, strengthened its upfront operational due diligence and increased ongoing monitoring of investments available through the platform.

It is also examining investor and adviser behaviour around individual assets.

“It’s not just about adding options. It’s also about making sure that the ones that are on the platform and particularly off super platform are still fit for purpose and [in] members’ financial interests.”

Heine said the changes apply both to investments being considered for addition to the platform and those already available.

For FY27, Heine said success would start with net flows landing within the $18–20 billion guidance range.

Netwealth also plans to announce new reporting capabilities, mobile functionality and product initiatives at its September conference.

Disclosure: The author owns shares in Netwealth Group (NWL)