Raiz Invest (ASX:RZI) Reports 15% Revenue Growth and Positive UEBITDA in FY25
Financial Performance
Raiz Invest reported a 15% increase in revenue for the financial year ended 30 June 2025, reaching $24.1 million. Active customers grew by approximately 7% to 329,277, and the average revenue per user (ARPU) rose by 9% to $75.67. Funds Under Management (FUM) surged by 30% to $1.82 billion, driven by net inflows of $210 million.
Operational Highlights
Underlying EBITDA reached $2.8 million, a 147% increase from the previous year, supported by improved operating leverage. Operating cash flows stood at $4.0 million, contributing to a free cash flow of $0.9 million and a cash balance of $13 million as of 26 August 2025.
Product Innovation
Raiz Invest successfully launched several new products, including Raiz Lite, Raiz Jars, the Raiz Your Game podcast, automated Raiz Rewards, and the Plus product into Super. The company expanded Raiz Plus investment options and continued to develop its product roadmap.
Industry Recognition
The platform won the 2025 Canstar Innovation Excellence Award for Raiz Plus portfolios and was named one of CNBC World’s Top Fintech Companies 2025. Additionally, Raiz won awards for round-up functionality by WeMoney and was a finalist in Fintech Australia’s Finnies Awards for Excellence in Wealth Management.
Strategic Partnerships
Raiz Invest’s partnership with State Street Investment Management is progressing well, focusing on new product development and enhancing financial literacy content for its customers.
Future Outlook
For FY26, Raiz Invest anticipates Underlying EBITDA in the range of $4.5 million to $5.5 million, based on continued growth in active customers and funds under management.
Executive Comments
Brendan Malone, Raiz Invest Managing Director and CEO, stated: “We are very pleased with the operational performance of the business in FY25, with strong growth across our core business metrics throughout the year. In line with our growth strategy, our customers are engaging with our platform with a longer-term wealth focus. Customers are increasingly adopting multiple Raiz products, continuing to deposit funds throughout the ups and downs of the market cycle and growing their average balances.
Over the past year, we successfully delivered on our product roadmap with multiple product launches and our innovative products have been recognised within the fintech industry in Australia and globally. We strengthened our management team and strategically invested in new data analytics and branding initiatives to position the company for long-term success. Pleasingly, profitability significantly improved, demonstrating the operating leverage in our business model as we scale.
We enter FY26 with positive momentum and we continue to pursue additional organic growth strategies and M&A opportunities.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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