Generation Development Group (ASX:GDG) has released its financial results for the first half of FY26, reporting significant growth across its core metrics.
The group’s underlying net profit after tax rose to $20.1 million, representing a 63% increase compared to the prior corresponding period.
Total revenue for the half-year reached $88.4 million, a 35% increase from the previous year, supported by an expanding recurring revenue base.
Investment bonds funds under management grew by 34% to reach $5.2 billion, while managed accounts FUM increased by 36% on a like-for-like basis to $34.5 billion.
The company noted that its subsidiary, Generation Life, maintained a 60% market share of inflows within the investment bond sector.
The performance was bolstered by record numbers of financial advisers incorporating these products into client portfolios, driven by tax efficiency and estate planning considerations.
The group has completed the transition to a new structure that integrates Lonsec Investment Solutions and Evidentia Group.
The move is intended to enhance alignment across the group's subsidiaries.
Management indicated that the current revenue model is increasingly linked to FUM or subscription-based services, which is expected to provide more predictable earnings.
The group reported a cash balance of $83.8 million, maintaining a strong balance sheet to support future operations into the second half of the year.
At the time of reporting, Generation Development Group's share price was $4.24.