Raiz delivers 93% UEBITDA lift and returns to profit as it charts wealth platform transformation
In its FY26 full-year financial results presentation, released 27 August 2026, Raiz Invest Limited (ASX: RZI) outlined a return to statutory profit alongside a strategic pivot from micro-investing towards a broader wealth management platform.
The company recorded Statutory NPAT of $3.5m for the year, reversing a $0.4m loss in FY25, while Underlying EBITDA (UEBITDA) rose 93% to $5.5m. Revenue climbed 21% to $29.2m, supported by a base of 351,362 active customers.
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FY26 financial results: strong revenue growth driving profitability
The full-year result reflected what management described as “positive jaws”, where revenue growth of 21% outpaced operating cost growth of 12%. This gap drove UEBITDA margin expansion to 18.7%, up from 11.8% in FY25.
The swing to statutory profit warrants context. The $3.5m Statutory NPAT includes a $3.2m non-cash tax benefit arising from the recognition of prior-year carried-forward losses, meaning the figure should not be read as operating profit alone. Additionally, the second-half NPBT absorbed $1.3m in non-recurring CEO transition and corporate advisory option expenses, which were excluded from underlying EBITDA.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue | $29,223k | $24,067k | +21% |
| Operating expenses | ($23,765k) | ($21,236k) | +12% |
| UEBITDA | $5,458k | $2,831k | +93% |
| UEBITDA Margin | 19% | 12% | +7pp |
| Statutory NPAT | $3,537k | ($365k) | Turnaround |
With margin expanding to 18.7% and three consecutive years of positive UEBITDA now recorded, the results point to a scaling model with improving operating leverage.
Core drivers: FUM, ARPU and customer growth
Average Revenue Per User (ARPU) stood out as the primary engine of revenue growth, rising 13.5% to $85.87 and comfortably outpacing active customer growth of 6.7%. Active customers reached 351,362, up 7%, while net inflows of $219m grew 4%.
The presentation attributed ARPU growth to three factors:
The 1H FY26 ARPU trajectory, where annual revenue per user rose 16.4% to $86.45 as the Premium Plus Plan captured 38% of new users, established the unit economics pattern that the full-year result extended and confirmed.
- A fee increase effective August 2025
- Growth in higher-revenue products, namely Raiz Plus and Raiz Super
- Higher account balances driving FUM-based fees
Funds under management (FUM) crossed $2.32bn, up 28%, driven by net inflows plus positive market movement across all portfolios. High-growth product lines underscored the platform’s ability to deepen customer value, with Kids FUM reaching $123m (a CAGR of 135.5%) and Plus FUM at $424m (a CAGR of 54.7%).
Cash generation and balance sheet strength
Cash generation strengthened materially over the period. Operating cash flow rose 30% to $5.1m, representing 94% conversion of underlying EBITDA, while free cash flow more than tripled to $2.7m from $0.9m in FY25.
Development costs eased 20% to $2.5m, supporting the improved free cash flow position. The company ended the year with closing cash of $15.4m, up 18%, and no corporate debt. Net tangible assets increased 27% to $13.1m.
This self-funding capacity is significant, as Raiz’s strong cash generation and capital position support investment in its planned transformation.
Understanding the micro-investing to wealth platform shift
Micro-investing refers to investing small amounts regularly, often by rounding up spare change from everyday purchases or making modest recurring contributions. It lowers the barriers that can keep newer investors out of the market. A broader wealth management platform extends beyond this entry point, offering a wider range of products across a customer’s financial lifecycle.
For investors, the significance lies in economics. Expanding the product suite can lift ARPU and lifetime value per customer while broadening the addressable market. The demographic backdrop supports this direction, with research indicating 24% of Gen Z Australians invest regularly, and a projected $5.4tn in intergenerational wealth transfer expected over the next 20 years.
The runway is sizeable. Against an estimated 10.2m Australian investors, Raiz served roughly 0.35m active customers, leaving room for both new acquisition and cross-promotion to its existing base.
FY27 transformation: four priorities to drive sustainable growth
Management outlined a transformation programme for FY27 aimed at repositioning Raiz from a micro-investing platform to a wealth management platform. The company noted its strong capital position supports investment in the business, and that the transformation is designed to strengthen operations “without embedding unnecessary ongoing costs.”
The programme centres on four focus areas:
- Customer acquisition, conversion and lifetime value
- Brand evolution and market positioning
- AI-enabled customer engagement
- Broader wealth platform enablement
Alongside these, management pointed to enhancing leadership capability, building a high-performance culture and exploring selective M&A opportunities. A high priority product initiative for the year is the proposed launch of US-listed equities and ETFs and direct ASX trading, which remains a high FY27 priority. The go-to-market approach is planned to be staged, initially cross-selling to existing customers, then targeting new customers, before expanding promotion to the broader market. Australian share trading is planned to follow the US equities and ETF launch, subject to final sequencing and delivery considerations.
What it means for investors
The FY26 results combine demonstrated profitability, a strong cash position and no corporate debt with a large addressable market and a defined transformation roadmap. Shares closed at $0.53 on 30 June 2026, with closing cash of $15.4m. As of 17 August 2026, the company reported a market capitalisation of approximately $64.3m.
The next catalysts to watch are the planned FY27 product launches, including US-listed equities and ETFs and direct ASX trading, which management has identified as central to the platform’s evolution.
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