Raiz Invest's First Half 2025 Earnings: A Closer Look

Raiz Invest Limited, the Australian micro-investing platform, has released its first half 2025 earnings, reporting a loss of AU$0.012 per share, a significant improvement from the AU$0.016 loss per share in the first half of 2024. This 25% reduction in losses year-over-year is a positive sign for the company's financial health and growth prospects. However, it is essential to analyze the underlying factors contributing to this improvement and compare Raiz Invest's performance to its industry peers.

Historically, Raiz Invest has been reporting losses, with the full year 2024 loss per share at AU$0.02 and the full year 2023 loss per share at AU$0.074. This consistent trend of reducing losses over time indicates that the company is making progress in its financial performance. When compared to its industry peers, such as SelfWealth, Sequoia Financial Group, COG Financial Services, and Euroz Hartleys Group, Raiz Invest's market capitalization of AU$62M is lower than some of its peers, suggesting that the company may have more room for growth and improvement.

The key drivers behind the improvement in Raiz Invest's earnings per share compared to the first half of 2024 can be attributed to several factors:

1. Increase in Active Customers: Raiz Invest experienced an 8.5% year-over-year (YOY) increase in active customers, reaching 317,995 by the end of December 2024. This growth in customer base contributed to the improvement in EPS.
2. Increase in Average Revenue Per User (ARPU): The ARPU for Raiz Invest increased by 6.4% YOY to $75.68. This increase in ARPU, driven by a shift in product mix towards higher revenue products, led to an improvement in EPS.
3. Strong Funds Under Management (FUM) Growth: Raiz Invest's total FUM grew by 32.4% YOY to $1.61 billion, driven by strong net inflows of $183 million in Calendar Year 2024 and positive investment markets. This growth in FUM contributed to the improvement in EPS.
4. Positive Operating Cash Flow: Raiz Invest reported a positive operating cash flow of $700,000 for the quarter, which also contributed to the improvement in EPS.

These factors, combined with the company's continued product innovation and strong cash position, have driven the improvement in Raiz Invest's earnings per share compared to the first half of 2024. As Raiz Invest continues to grow its user base and engage its customers, the company is well-positioned to maintain its positive financial performance trajectory.

In conclusion, Raiz Invest's first half 2025 earnings performance shows a significant improvement compared to its historical trends and industry peers. The company's focus on user base growth, engagement, and product innovation has driven its financial performance, positioning it for continued success in the future.