RAIZ Invest's Turnaround Now Rests On A New CEO

Fund managers track a maiden statutory profit and a leadership change just as the fintech targets direct US and ASX trading

31 May 2026 · 6 min read

A leadership change caught managers by surprise just as RAIZ Invest set out its next growth phase. DMX Asset Management said in its May 2026 monthly report that long-serving CEO Brendan Malone, who had guided the business into a strong financial position and its maiden statutory profit, exited the role shortly after month end, replaced by Craig Keary, previously the leader who took Selfwealth to a contested takeover. The manager said it added incrementally to its holding on the back of encouraging commentary on current operating performance at the Australian Microcap Conference, even as the transition adds a new variable to the investment case.

The change lands right as Raiz outlines a more ambitious product roadmap. DMX Asset Management said the company is targeting the first half of FY27 to launch US-listed equities trading, giving customers direct access to the US market, alongside infrastructure work for direct ASX trading via single HIN ownership. Before either can launch, Raiz is building instant payment functionality to support real-time trading, a capability the manager estimates could add more than $2 million a year in profit under assumptions of $2 per trade, 24 trades a year and 25 per cent customer take-up.

The turnaround behind the roadmap

That expansion is only possible because of a multi-year profitability turnaround DMX Asset Management has tracked as a long-time shareholder. The manager noted Raiz reported an underlying EBITDA loss of around $8 million as recently as FY22, and following the divestment of a loss-making Asian business and sustained fiscal discipline, delivered its maiden free cash flow result and an NPAT-positive second half in FY25. Its February 2026 update confirmed the milestone had arrived in full: revenue up 24 per cent to $14.4 million, active customers up 6 per cent to 336,048, ARPU up 16 per cent to $86 a year, and underlying EBITDA up 270 per cent to $2.6 million, with a maiden pre-tax profit of $800,000.

Raiz has a highly scalable platform and the business has now transitioned into structural profitability, a major operating milestone. We now have multiple levers for growth, including new customer acquisition and as well as increasing ARPU through new product development, strong engagement, higher retention and deeper relationships across our existing customer base.

— Brendan Malone, RAIZ Invest CEO, quoted by DMX Asset Management, Monthly Report, February 2026

A stock that swings on customer growth headlines

Cyan Investment Management's monthly reporting through the same period illustrates how volatile sentiment around Raiz has been even as the underlying business improved. The manager recorded a 19 per cent fall in January 2026 after lower-than-expected customer growth numbers for the seasonally weak December quarter, followed by a further 15 per cent decline in March despite what it called no specific negative company news, before a 7 per cent rebound in April on an impressive jump in active customer numbers to 347,000. DMX Asset Management made a related point in January 2026, arguing that the market can over-extrapolate short-term growth figures into wild price swings for what are otherwise sound, well-positioned businesses with attractive long-term prospects.

The market can often over and under-extrapolate short-term growth figures resulting in some wild price movements for what are otherwise sound, well-positioned, good businesses with attractive long-term prospects.

— DMX Asset Management, Monthly Report, January 2026

What managers are watching next

Salter Brothers' May 2026 update highlighted the underlying engagement metrics that support the longer-term case regardless of short-term customer growth wobbles, noting Raiz Jars adoption up 147 per cent on the prior comparable period, Plus members up 22.4 per cent and Kids portfolios up 26.3 per cent, alongside progress on direct US and Australian equities trading and a number of AI initiatives. With FY26 EBITDA guidance reaffirmed at $4.5 million to $5.5 million, the near-term test for new CEO Craig Keary is whether he can deliver the US and ASX direct trading launches on schedule while maintaining the growth in ARPU and engagement that underpinned the turnaround under his predecessor.