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Penny Taylor
Micro-investing innovator Raiz Invest has shaken off market jitters to deliver a confident third quarter, stacking solid gains across its key metrics, while sharpening its product push and AI playbook.
Funds under management (FUM) surged 23.6 per cent year-on-year to $2.04 billion, active customers climbed to 340,222 and average revenue per user (ARPU) jumped 14.1 per cent to $86.61.
Whilst a March market wobble briefly dulled activity, April has already sparked a sharp snapback, with FUM climbing to $2.17B as sentiment steadied and active customers further increasing to 347,354.
Despite the volatility, the company has notably maintained its full-year guidance, with a forecast for underlying earnings before interest, tax, depreciation and amortisation in the range of $4.5M to $5.5M.
โThe Raiz business model has, once again, proven resilient in the face of market volatility.โ
Raiz Invest managing director and chief executive officer Brendan Malone
At the heart of Raizโs product offering is a simple yet sticky mechanism for retail investors to build capital. The platform rounds up everyday purchases to the nearest dollar and funnels the spare change into investment portfolios, quietly converting daily spending into long-term wealth. This steady stream of micro-contributions, often paired with recurring deposits, creates a consistent inflow engine that compounds over time and cushions the impact of market volatility.
Dig a little deeper and the real story is engagement-fuelled growth. Higher-value products are stealing the spotlight, with the companyโs Jars product surging 142.4 per cent year-on-year and a whopping 22.9 per cent over the quarter to 33,331 active accounts.
Kids and Plus portfolios delivered equally punchy gains of 26.3 per cent and 22.4 per cent, respectively, comfortably outrunning the 4.7 per cent lift in overall customers. The company says the trend signals a platform shifting gears from simply signing users to steadily scaling product uptake as customers grow more familiar with its broader suite of offerings.
FUM held its ground through global volatility, easing only slightly from the previous quarter as markets turned choppy. Net inflows stayed steady, underscoring the strength of Raizโs micro-investing model, with consistent contributions smoothing the bumps. Average account balances climbed 18.1 per cent to $5,996, indicating customers are steadily leaning in and increasing their long-term exposure.
The product engine continues to hum. The Lite plan, built for first-time investors, gained rapid ground, leaping 86 per cent quarter-on-quarter to 5867 users and feeding the pipeline for future upgrades. Super portfolios also edged higher, up 14 per cent year-on-year to 15,196 active accounts. In contrast, broad-based growth across Plus, Kids and property portfolios reflects a platform pulling in capital from multiple angles.
Raiz Invest managing director and chief executive officer Brendan Malone said: โWe remain on track to deliver FY26 UEBITDA in the range of $4.5M to $5.5M.โ
Raiz is also busy building out its next growth phase, with a suite of new features designed to transform its investing platform into a full-service hub. Direct access to United States equities is on the way, alongside infrastructure for trading on the Australian Securities Exchange under a single holder identification number structure.
The company says instant payments are also on the way, targeting near real-time investing and smoother money movement while laying the groundwork for new transaction-based revenue streams.
Behind the scenes, the company is doubling down on AI to deepen engagement and sharpen its edge. From faster digital onboarding and smarter compliance checks to targeted rewards and a personalised financial coach, management says the next wave of tools will make investing more intuitive and more automated.
The innovation push has been supported by an upgraded data architecture that Raiz says is already improving efficiency and laying the groundwork for faster feature rollouts.
At its core, Raizโs business model appears to continue resonating with a new wave of retail investors seeking simple, set-and-forget solutions. By turning everyday spending into investment contributions, Raiz taps into behavioural trends that favour consistency over lump-sum investing, a formula that has proven durable across market cycles.
External conditions may now start to play in its favour. With equity markets stabilising after the March sell-off, retail confidence seems to be returning, which may translate into stronger inflows and higher engagement across digital platforms.
Looking ahead, the upcoming fourth-quarter app refresh is shaping up as a key catalyst, with improved design, shared investment goals and gifting functionality aimed at boosting stickiness and social engagement.
With scale building, technology taking centre stage and a healthy $14.6M cash buffer as at the end of March, Raiz looks to be crafting a platform with real staying power. If momentum continues to build, the companyโs small-change model could well deliver outsized results.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
