Financial Gravity's Profit Soars, Validating Its Wealth-Tech Model

LAKEWAY, TX – January 23, 2026 – Financial Gravity Companies, Inc. (OTC: FGCO) today announced first-quarter fiscal 2026 results that not only surpassed prior-year figures but also provided a strong validation of its disruptive business model aimed at the mass affluent market. The company reported a 20% increase in total revenue to $2.5 million, but the standout figure was a dramatic surge in net income to $314,003, a nearly seven-fold increase from the $46,216 reported in the same period last year.

The impressive bottom-line performance underscores a strategy focused on scalable growth and disciplined operational control. This quarter's results appear to be the culmination of a multi-year effort to build a platform that delivers sophisticated financial services, traditionally reserved for the ultra-wealthy, to a broader audience.

"Our first quarter results demonstrate the strength and scalability of our business model," said Scott Winters, Chief Executive Officer. "We delivered meaningful revenue growth while significantly improving profitability through disciplined expense management. Financial Gravity's platform continues to attract advisors seeking comprehensive multi-family office capabilities, and our diversified revenue streams position us well for sustained performance."

The Engine of Profitability

A deeper look into the financials reveals a multi-faceted growth story. The primary driver of the top-line increase was a 24% rise in investment management fees, which climbed to $2.1 million. This growth is directly tied to the company's success in expanding its assets under management (AUM), which officially surpassed $650 million as of December 31, 2025. This indicates a growing trust from both clients and the advisors who serve them.

Complementing this was a steady 7% increase in insurance and service income, which reached $485,152, highlighting the strength of the firm's diversified revenue streams. However, the most telling metric of the quarter was the sharp 83% reduction in professional services expenses, which plummeted to just $23,000. This dramatic cost reduction points to significant gains in operational efficiency, suggesting the company's technology and service platform has matured to a point where it can handle increased business volume without a proportional rise in overhead.

This combination of robust revenue growth and stringent cost control is the formula that powered the substantial improvement in net income. It suggests that the company's model is not only effective in attracting assets but is also financially sustainable and built for profitable scaling.

A New Blueprint for the Mass Affluent

Financial Gravity's performance is intrinsically linked to its strategic focus on a specific, and often overlooked, segment of the population: the mass affluent. This group, typically defined as households with investable assets between $100,000 and $1 million, represents a massive market. Research indicates this demographic will account for over $42 trillion in wealth in the U.S. by 2025, yet it has historically been underserved by traditional wealth management firms that often prioritize higher-net-worth clients.

Financial Gravity's mission is to "democratize family office benefits" for this market. It achieves this through its flagship offering, the "Turnkey Multi-Family Office Charter." This model moves beyond the siloed advice common in the industry, instead integrating key financial pillars—tax strategy, investment management, and risk mitigation—under one coordinated umbrella. The company champions a "Taxes First Philosophy," placing tax efficiency at the forefront of financial planning rather than treating it as an afterthought.

This integrated approach aims to deliver what many mass affluent clients are searching for: holistic, personalized advice that addresses the full complexity of their financial lives without the prohibitive cost of a private family office. By providing a cohesive strategy, the firm seeks to generate higher after-tax returns and provide a more secure financial future for its clients.

Empowering Advisors, Winning Clients

The key to scaling this sophisticated model lies in empowering independent financial advisors. Rather than competing with advisors, Financial Gravity partners with them, offering its Turnkey Charter as a comprehensive support system. This platform provides the tools, technology, and back-office support that enable advisors to deliver a family office-level experience to their clients.

For advisors, this proposition is compelling. It allows them to differentiate themselves in a crowded marketplace by offering a superior value proposition. The platform includes proprietary SaaS applications like Best Interest Analysis (BIA) and Real Risk Meter, which are designed to enhance client communication and clearly demonstrate the value of the advice given. Furthermore, a "done for you" approach to middle and back-office tasks frees advisors from administrative burdens, allowing them to focus on what they do best: building client relationships and providing strategic counsel.

This advisor-centric strategy creates a virtuous cycle. By attracting and retaining talented advisors, Financial Gravity expands its AUM, which in turn drives the recurring management fees that form the bedrock of its revenue. The company's history of strategic AUM acquisitions in 2023, which added over $230 million from firms like Marathon Financial Group and CAMBRIDGE CAPE COD ADVISORS, demonstrates a clear and aggressive execution of this growth strategy.

The strong results from the first quarter of fiscal 2026 are not an isolated event but rather a clear signal that Financial Gravity's long-term vision is translating into tangible financial success. By effectively serving the needs of both the mass affluent client and the independent advisor, the company has carved out a powerful niche and built a scalable engine for future growth in the evolving landscape of wealth management.