HUB24 Surges with 41% EBITDA Growth and Raises FY26 FUA Target

Strong Financial Performance

HUB24 Limited (ASX: HUB) has delivered a commanding performance in the first half of fiscal 2025, reporting underlying EBITDA of $77.6 million, a 41% increase compared to the same period last year. Underlying net profit after tax (NPAT) rose 40% to $42.6 million, while statutory NPAT surged 54% to $33.2 million. These results reflect the company’s successful execution of its growth strategy amid a competitive wealth management landscape.

Revenue growth was equally impressive, with total revenue climbing 25% to $195.2 million, driven primarily by the Platform segment’s 29% increase to $154.2 million. The Tech Solutions segment also contributed, with revenue up 9% to $38.0 million and underlying EBITDA rising 37%.

Market Share Gains and Platform Momentum

HUB24’s platform continues to gain traction, now ranked as the seventh largest in Australia with a market share rising to 7.9% from 6.6% six months earlier. The platform attracted record net inflows of $9.5 billion during the half, a 31% increase year-on-year, including $1.5 billion from large migrations. This inflow performance secured HUB24 the top spot for both quarterly and annual net inflows according to Plan for Life data.

The number of advisers using the platform grew by 361 to 4,886, supported by 84 new distribution agreements. HUB24’s platform excellence was recognised with multiple awards, including Best Platform Overall for the third consecutive year and Best Platform Managed Accounts Functionality for the eighth time in nine years.

Innovation and Strategic Partnerships

Innovation remains a cornerstone of HUB24’s strategy. Enhancements such as improved advice fee consent capabilities and the pilot of the new Engage client reporting tool demonstrate the company’s commitment to adviser productivity and client engagement. The strategic alliance with Reach Alternative Investments, including a minority equity stake, signals HUB24’s intent to expand its alternative investment offerings in response to growing market demand.

Within Tech Solutions, Class and NowInfinity continue to grow steadily, with Class maintaining its position as the second largest SMSF software provider in Australia. Investments in AI, machine learning, and automation through the Innovation Lab aim to further boost operational efficiency and customer value.

Upgraded Outlook and Dividend Increase

Reflecting confidence in its growth trajectory, HUB24 upgraded its FY26 platform funds under administration target to a range of $123 billion to $135 billion, up from the previous $115 billion to $123 billion. The company also declared a fully franked interim dividend of 24.0 cents per share, a 30% increase on the prior corresponding period, underscoring strong cash flow generation and shareholder returns.

CEO Andrew Alcock highlighted the company’s momentum, noting that HUB24 is well-positioned to capitalise on evolving wealth management trends and deliver sustained growth and profitability. The integration of the Group’s capabilities and ongoing innovation are expected to drive further market leadership.