Raiz Invest Profit Surge
Raiz Invest Reports Surge In Revenue And Turns Profitable For FY26
Anonymous
Key Points
1
Raiz did not declare a dividend for FY26 and continues to operate without a dividend reinvestment plan; the prior year included the divestment of the Malaysian business and the group reported no associates or joint ventures or changes in control.
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Craig Keary became Raiz’s chief executive on 1 June 2026, and the year included around $1.3 million of non-recurring CEO transition and corporate advisory option expenses in the second half.
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Raiz generated stronger cash flow with operating cash flows of about $5.1 million, a free cash flow of around $2.7 million, and a year-end cash balance of about $15.4 million.
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ARPU growth was driven by the August 2025 fee increase and higher-revenue products, with Premium Plus helping to capture about 38% of new users and an overall 13.5% rise to $85.87.
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Total investments through Raiz exceeded $5.4 billion, with more than $771 million contributed via Round-ups; the platform also reported over 159,000 Raiz Kids accounts and more than 1.85 million cumulative sign-ups.
Raiz Invest swung to profitability in FY26, posting its first-ever net profit of AUD $3.5 million as revenue jumped 21.4% to AUD $29.2 million, according to MarketScreener. Funds under management climbed to AUD $2.32 billion, while underlying EBITDA nearly doubled to AUD $5.5 million, signaling the fintech platform's shift from micro-investing to broader wealth management is paying off.
The company added 351,362 active customers and average revenue per user grew 13.5% to AUD $85.87, driven by higher-margin products and an August 2025 fee increase Bulls N Bears. New CEO Craig Keary took the helm on June 1, 2026, with the company reinvesting profits into a Transformation Program aimed at accelerating growth and exploring potential acquisitions.
Path to First Profit and Margin Expansion
Raiz's underlying EBITDA surge of 92.8% outpaced revenue growth, lifting the EBITDA margin to 18.7%, according to Kalkine. Operating cash flows hit AUD $5.1 million with free cash flow of AUD $2.7 million and year-end cash of AUD $15.4 million. The company steered clear of dividends, preserving capital for reinvestment and the transformation strategy under new leadership.
Funds Under Management Nearly Doubles Despite Market Headwinds
Total FUM rose 27.8% to AUD $2.32 billion, driven by net inflows of AUD $219 million Kalkine. Growth was broad-based across Super FUM, Raiz Plus FUM, and Kids FUM segments. Cumulative platform investments exceeded AUD $5.4 billion, with AUD $771 million contributed via Round-ups — the platform's signature auto-invest feature.
Premium Products Capture Growing User Base
Premium Plus accounts captured about 38% of new users, supporting the 13.5% ARPU lift to AUD $85.87 Bulls N Bears. Active customer count reached 351,362 as the company pivoted toward higher-margin wealth management offerings including Raiz Lite and Raiz Academy. Raiz Kids accounts surpassed 159,000, expanding the company's addressable market into younger demographics.
Leadership Transition Signals Growth Acceleration
Craig Keary's appointment as CEO on June 1, 2026 marks a strategic shift toward the Transformation Program aimed at expanding the wealth platform and exploring M&A opportunities. FY26 included AUD $1.3 million of one-time CEO transition and advisory costs. The company secured a clean audit with no disputes or qualifications, providing a stable foundation for the new leadership to pursue growth initiatives.
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