Raiz Invest Ltd. (RZI) AI Stock Analysis

• Market Cap: AU$60.60M
• Dividend Yield: N/A
• Average Volume (3M): 131.01K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.83
• Revenue Growth: 5.03%
• EPS Growth: 52.31%
• Country: AU
• Employees: 31
• Sector: Technology
• Sector Strength: 88
• Industry: Financial - Capital Markets
• EPS (TTM): 0.03
• Shares Outstanding: 105,390,010
• 10 Day Avg. Volume: 115,805
• 30 Day Avg. Volume: 131,015
• PEG Ratio: 44.23
• Price to Book (P/B): 33.93
• Price to Sales (P/S): 56.53
• P/FCF Ratio: 499.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.04
• Price Target Upside: 78.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): AU$27.00M

• Rating: 48 Neutral
• Price Target: AU$0.56 ▼(-3.62% Downside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

The score is held back mainly by weak technical momentum (price below major moving averages, negative MACD, low RSI) and lack of profitability (negative margins/ROE, negative P/E). Offsetting these are a stable balance sheet with very low leverage and improved free cash flow.

Positive Factors

High gross margin

A 74% gross margin indicates Raiz’s platform has low incremental cost to serve additional users and portfolios. That structural margin profile provides scope for operating leverage as user base and AUM scale, improving the path toward sustainable profitability if fixed costs are controlled.

Improving free cash flow

A 105% rise in free cash flow and an FCF-to-net-income ratio of 1.0 show the business is converting operations into cash despite accounting losses. Durable cash generation reduces reliance on external financing and supports reinvestment in product, marketing, or balance sheet cushions.

Very low financial leverage

Extremely low debt levels give Raiz financial flexibility to fund growth initiatives, absorb short-term shocks, and invest in product development without heavy interest burdens. A conservative capital structure is a durable foundation during scaling and market cycles.

Negative Factors

Ongoing unprofitability

Persistent negative net margins and reported negative EBIT mean Raiz is not yet generating accounting profits. Over the medium term this limits retained earnings, constrains investor returns, and requires either sustained FCF improvement or external capital to fund growth until margins turn positive.

Modest top-line growth

Single-digit revenue growth restricts the company’s ability to scale fixed costs and achieve operating leverage. For a fee/AUM-dependent fintech, slow revenue expansion makes it harder to amplify margins and cover customer acquisition and product development expenses over a 2–6 month horizon.

Concentrated fee-based revenue

Reliance on fees tied to customer accounts and AUM concentrates revenue on user growth and asset accumulation. Without meaningful diversification (interchange, referrals, or material partnerships), revenue and margins remain sensitive to customer acquisition costs and AUM growth dynamics over the medium term.

Raiz Invest Ltd. Business Overview & Revenue Model

Company Description

Raiz Invest Limited provides financial services and products through its mobile micro-investing platform in Australia, Indonesia, and Malaysia. The company operates through two segments, Raiz Invest Micro-Investing Platform and Other Financial segments. Its platform offers customers a way to invest money using the Raiz mobile application or through the Raiz Website. The company was incorporated in 2016 and is based in Sydney, Australia.

How the Company Makes Money

Raiz Invest generates revenue primarily through several key channels. Its main source of income comes from fees charged on the investment accounts, which include a monthly subscription fee for users with balances above a certain threshold. Additionally, Raiz earns money from the management fees associated with the portfolios it manages on behalf of its users. The company may also receive performance fees based on the growth of the investments. Furthermore, Raiz has partnerships with various financial institutions and service providers, which can lead to additional revenue streams through referral fees or commissions. The company's ability to attract and retain a growing user base directly impacts its earnings, making user engagement and acquisition crucial to its financial success.

Raiz Invest Ltd. Financial Statement Overview

Summary

Modest revenue growth (3.62%) and strong gross margin (74.35%) are positives, supported by improved free cash flow growth (105.20%) and low leverage (debt-to-equity 0.033). However, ongoing unprofitability (negative net margin and negative ROE) keeps the financial performance score constrained.

Income Statement

Raiz Invest Ltd. has shown a positive revenue growth rate of 3.62% in the latest year, indicating a modest upward trend. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -1.29% and a negative EBIT margin. The gross profit margin remains strong at 74.35%, but the company needs to improve its cost management and operational efficiency to achieve profitability.

Balance Sheet

The balance sheet of Raiz Invest Ltd. is relatively stable with a low debt-to-equity ratio of 0.033, indicating low financial leverage. However, the return on equity is negative at -0.77%, reflecting ongoing challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a solid capital structure, but the company needs to enhance its profitability to improve overall financial health.

Cash Flow

Raiz Invest Ltd. has demonstrated significant improvement in free cash flow growth, with a remarkable increase of 105.20%. The operating cash flow to net income ratio is 0.53, indicating some ability to generate cash from operations despite net losses. The free cash flow to net income ratio of 1.0 suggests that the company is managing its cash flow effectively, but sustained profitability is necessary for long-term stability.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	24.07M	21.66M	19.17M	19.34M	13.97M
Gross Profit	17.89M	20.55M	16.07M	16.03M	11.23M
EBITDA	134.00K	524.00K	-3.15M	-7.66M	-1.95M
Net Income	-310.00K	-1.87M	-6.90M	-9.63M	-3.52M
Balance Sheet
Total Assets	47.48M	42.88M	44.75M	54.19M	42.04M
Cash, Cash Equivalents and Short-Term Investments	13.62M	9.90M	9.13M	16.14M	19.67M
Total Debt	1.33M	1.11M	637.00K	1.34M	705.00K
Total Liabilities	7.38M	6.52M	6.17M	8.16M	4.80M
Stockholders Equity	40.10M	37.99M	41.44M	47.95M	38.25M
Cash Flow
Free Cash Flow	2.72M	342.00K	-6.62M	-5.79M	-2.57M
Operating Cash Flow	2.72M	3.61M	-3.00M	-2.76M	-604.00K
Investing Cash Flow	-3.13M	-3.27M	-3.62M	-3.03M	-2.06M
Financing Cash Flow	3.70M	951.00K	-488.00K	2.09M	9.16M

Raiz Invest Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RZI, the sentiment is Negative. The current price of 0.58 is below the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.68, and below the 200-day MA of 0.71, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 34.15 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RZI.

Raiz Invest Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFX	63 Neutral	AU$134.39M	21.16	9.31%	―	-5.73%	-36.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COG	54 Neutral	AU$305.08M	10.89	12.36%	2.86%	-26.30%	40.12%
PPS	52 Neutral	AU$370.48M	9.65	12.27%	2.81%	24.56%	59.32%
RZI	48 Neutral	AU$60.60M	5.73	-0.15%	―	5.03%	52.31%
FNX	46 Neutral	AU$11.21M	-5.25	-34.88%	―	43.00%	-6078.57%
ABE	38 Underperform	AU$4.12M	-0.52	-444.41%	―	-37.25%	27.45%

Raiz Invest Ltd. Corporate Events

Raiz Invest Turns Profitable as Revenue and Funds Under Management Surge

Raiz Invest reported strong first-half FY26 results, with revenue up 23.9% to $14.4m, active customers rising 5.7% to 336,048 and funds under management climbing 28.5% to $2.1bn. The shift toward higher-value products such as the Plus Plan and kids portfolios lifted annualised revenue per user by 16.4%, while a revised fee schedule drove a 26.3% increase in maintenance fees, now accounting for 63% of revenue.

Underlying EBITDA surged 270% to $2.6m and net profit after tax reached $3.52m, supported by improved operating leverage and recognition of deferred tax assets. Operating cash flow grew 51.4% to $2.4m and free cash flow hit $1.05m, leaving Raiz with $14m in cash as it continues to invest in technology, data and product development, including its new Raiz Lite entry plan, enhanced Plus Plan and the Raiz Academy financial education platform.

The most recent analyst rating on (AU:RZI) stock is a Hold with a A$0.62 price target. To see the full list of analyst forecasts on Raiz Invest Ltd. stock, see the AU:RZI Stock Forecast page.

Raiz Invest swings to half-year profit as revenue climbs and asset base strengthens

Raiz Invest Ltd. reported a strong turnaround for the half-year ended 31 December 2025, with revenue from ordinary activities rising 23.9% to $14.38 million compared with the prior corresponding period. The company swung from a loss to a profit attributable to owners of $3.52 million, supported in part by a $2.68 million income tax benefit linked to deferred tax assets and liabilities.

Net tangible assets per share improved to $0.12 from $0.09 a year earlier, underscoring a stronger balance sheet position over the period. The group neither paid nor proposed any dividends for the half-year, did not gain or lose control of any entities, and its half-year financial report has been reviewed by external auditors, providing investors with additional assurance on the reported results.

The most recent analyst rating on (AU:RZI) stock is a Hold with a A$0.62 price target. To see the full list of analyst forecasts on Raiz Invest Ltd. stock, see the AU:RZI Stock Forecast page.

Raiz Invest Cancels 438,058 Performance Rights, Adjusting Capital Structure

Raiz Invest Ltd. has reported the cessation of 438,058 performance rights, recorded under the ASX security code RZIAT, effective 19 February 2026. The removal of these performance rights alters the company’s issued capital structure and may have implications for management and employee incentive arrangements, as well as for shareholders monitoring potential dilution and equity-based compensation trends.

The most recent analyst rating on (AU:RZI) stock is a Hold with a A$0.62 price target. To see the full list of analyst forecasts on Raiz Invest Ltd. stock, see the AU:RZI Stock Forecast page.

Raiz Invest Hits Record $2.1bn FUM as Plus and Kids Products Power Growth

Raiz Invest reported record funds under management of $2.1 billion for the quarter ended 31 December 2025, up 28.5% year on year, driven largely by $62 million in net inflows despite softer markets and cautious retail sentiment. Active customers grew 5.7% to 336,048, with particularly strong momentum in higher-margin Plus portfolios and Kids portfolios, whose FUM rose 50% and 65% respectively, while the Raiz Super Fund and the new low-cost Lite plan continued to expand the customer base and increase average account balances. The company is sharpening its strategic focus through partnerships such as its tie-up with Year13.com.au to bolster customer acquisition and awareness, and it outlined an ambitious 2026 product roadmap including US-listed equities, direct ASX trading, and AI-enabled onboarding and real-time trading, positioning Raiz to enhance user experience, deepen engagement and sustain growth in its core retail investment market while keeping its earnings guidance for FY26 unchanged.

The most recent analyst rating on (AU:RZI) stock is a Buy with a A$1.05 price target. To see the full list of analyst forecasts on Raiz Invest Ltd. stock, see the AU:RZI Stock Forecast page.