Raiz Invest swings to first-ever $3.5M profit as funds top $2.3B

More than 350,000 Australians have turned to the innovative micro-investment technology platform and investment fund, Raiz Invest, to help them with their investments and savings.

Micro-investing fintech Raiz Invest (ASX: RZI) has capped off a bumper financial year, swinging from a $400,000 loss in 2025 to bank a maiden net profit after tax of $3.5 million in 2026. Total revenue grew by more than 21 per cent to a hefty $29.2 million, while funds under management (FUM) surged to a record $2.32 billion.

Raiz’s successful model is deceptively simple. Through an efficient mobile app hooked into a user’s bank card, the platform rounds up users’ everyday purchases to the nearest dollar and funnels that spare change straight into a diversified investment portfolio. It’s a set-and-forget system that turns daily spending into a long-term wealth creation habit.

The company’s full-year results for the 2026 financial year show strong growth across all key metrics. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) almost doubled, jumping 92.8 per cent to $5.5 million from $2.8 million in the prior year.

The statutory net profit of $3.5 million included a $3.2 million tax benefit from the recognition of a deferred tax asset and $1.3 million in non-recurring expenses related to CEO transition costs and corporate advisory options.

Raiz's performance also demonstrated improving operating leverage, with the underlying EBITDA margin increasing by 6.9 percentage points to 18.7 per cent.

The growth was driven by a 27.5 per cent surge in FUM to $2.32 billion, fuelled by strong net inflows of $219 million and positive market movements. Active customers grew by 6.7 per cent to 351,362, while the average revenue per user lifted 13.5 per cent to $85.87.

Enter fintech and digital platform specialist Craig Keary, who officially took the reins as CEO in June after steering online broker platform Selfwealth through its high-stakes takeover by international digital wealth player Syfe. Keary has wasted little time putting his stamp on Raiz, launching a “Transformation Program” aimed at accelerating growth. The program is focused on four core elements: customer acquisition and lifetime value, brand evolution, AI-enabled customer engagement and broader wealth platform enablement.

The company’s fresh focus on higher-revenue products is also paying dividends. Its superannuation FUM increased 27.9 per cent to $496 million, while its Raiz Plus FUM, a premium offering, jumped 42.9 per cent to $424 million. The Raiz Kids portfolios also saw impressive growth, with FUM up 54.4 per cent to $123 million.

We enter FY27 with a solid foundation of Active Customers, Funds Under Management, a strong balance sheet, market-leading products and a trusted consumer brand. We will invest in people and systems through the Transformation Program over the next 18 months, to sustainably scale the business over time. We continue to explore selective M&A opportunities that accelerate distribution or enhance our product suite.   Raiz Invest CEO Craig Keary

Raiz's impressive numbers land amid a feeding frenzy across Australia's wealth-management sector. Late last year, L1 Capital and Platinum Asset Management joined forces. Meanwhile, Insignia Financial was swallowed up in a multibillion-dollar private equity deal in April and EQT Holdings recently attracted a $658 million takeover proposal from global investment giant TPG. It provides a compelling backdrop for Raiz’s own stated ambition to pursue selective M&A opportunities under a new leadership team.

The company has also been busy on the product development front, launching its low-cost entry plan 'Raiz Lite' for first-time investors and a new online education platform dubbed 'Raiz Academy' during the year. The innovation appears to be resonating, with Raiz picking up several gongs from the financial comparison site WeMoney, including 'Best for Round-Up Investing' and 'Best for Kids Investing', as well as two superannuation awards for 'Digital Innovation of the Year' and 'Excellent Rates & Fees'.

The results were underpinned by positive operating cash flows of $5.1 million, a 30 per cent increase on the previous year, which supported free cash flow of $2.7 million. Raiz finished the year with a healthy cash balance of $15.4 million, up from $13 million a year prior.

The company's product pipeline includes plans to introduce US-listed equities and ETFs, while direct ASX share trading is slated for delivery in FY27. This comes as the broader industry adapts to the introduction of ‘payday super’ from 1 July 2026, which is expected to increase the frequency of retirement contributions.

For the Raiz platform, built on the power of small, regular investments, the combination of a clear growth strategy and supportive industry tailwinds all points to a bright future. The company appears to have matured into an institutional-grade fintech powerhouse that has cracked the code on turning financial discipline into long-term wealth creation by using Australia’s collective spare change to create a highly profitable business.

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