ASX Stock of the Day: Raiz Invest (ASX: RZI)
- futuregatecapital
- Feb 8
- 2 min read
Financial Performance & Growth
Raiz Invest (ASX: RZI) continues its strong growth trajectory, driven by increasing Funds Under Management (FUM), rising customer numbers, and expanding revenue streams.
Funds Under Management (FUM): $1.61 billion as of December 2024, reflecting a 32.4% YoY increase (+6.3% QoQ). FUM further increased to $1.67 billion by January 25, 2025.
Revenue Growth: $5.95 million in Q2 FY25, up 13.5% YoY (+5.1% QoQ), fueled by higher active customers and increasing Average Revenue Per User (ARPU).
EBITDA: $1.3 million positive for Australian operations in FY24, showcasing improved profitability.
Key Highlights
Active Customers: 317,995, up 8.5% YoY, with further growth to 322,219 by January 25, 2025.
ARPU Growth: $75.68, up 6.4% YoY, driven by a shift to higher-revenue products like Raiz Plus and Raiz Super.
Raiz Super Performance: The Moderately Aggressive Option ranked #1 by SuperRatings against other balanced super options over 12 months to December 2024.
Customer Growth Acceleration: Q2 FY25 saw 7,395 new active customers, nearly double Q1’s growth of 3,824. This reflects improved marketing strategies targeting the right customers with customized messaging.
Product Innovation:
Raiz Jars set to launch in January 2025.
Winner of the Finder Awards 2024 for Investment Innovation.
Operational Strength & Cash Flow
Raiz continues to maintain a strong cash position with a positive operating cash flow of $700K in Q2 FY25 and a cash balance of $12 million. The company has also recorded four consecutive quarters of positive operating cash flow, reinforcing its financial stability.
Market Confidence & Outlook
Director Buys: 55,592 shares acquired at an average price of $0.45 (Nov-Dec 2024), reflecting confidence in the company’s growth.
Market Capitalization: $55 million, positioning Raiz as a leading fintech platform with continued expansion potential.
Future Growth Focus: Raiz is expanding its product offerings and refining marketing strategies to drive further growth in FY25
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