Generation Development Group FY26 slides: record growth, margin concerns

Generation Development Group (ASX:GDG) released its FY26 results on August 27, 2026, revealing record funds under management (FUM) and net inflows. The company's diversified financial services arm, which includes Generation Life, Evidentia Group, and Lonsec Research and Ratings, reported a group FUM of $46.5 billion, a 37% increase, and record net inflows of $9.7 billion.

While revenue rose 23% to $178.7 million and underlying net profit attributable to shareholders (NPAT) increased 21% to $40.7 million, earnings per share (EPS) stayed flat at 10.2 cents, as acquisition-related share issuances balanced profit growth. Despite strong top-line growth, investors expressed concerns about cost discipline and near-term profitability due to operating expenses climbing 26% to $119.5 million, outpacing revenue growth.

The company declared a fully-franked final dividend of 1.0 cent per share, maintaining the full-year dividend at 2.0 cents per share, unchanged from FY25. Management highlighted that profit before tax of $54.2 million exceeded market expectations, but the unchanged EPS disappointed investors anticipating stronger per-share earnings growth.