Rising Costs and Market Risks Loom Despite HUB24’s Strong Half-Year Results

Robust Financial Performance

HUB24 has reported a strong first half for FY25, with revenue climbing 25% to $195.2 million and underlying EBITDA surging 41% to $77.6 million. The company’s underlying net profit after tax (NPAT) rose 40% to $42.6 million, while statutory NPAT jumped 54% to $33.2 million. These results underscore HUB24’s successful strategy of scaling its platform and technology solutions amid a competitive wealth management landscape.

Driving this growth was a record $9.5 billion in platform net inflows, a testament to HUB24’s appeal among financial advisers and their clients. Funds under administration (FUA) on the platform increased 36% to $98.9 billion, contributing to a total group FUA of $120.9 billion, up 33% year-on-year.

Market Leadership and Adviser Growth

HUB24’s market share climbed to 7.9%, the highest gain among the top 10 Australian platforms over the past year. The company added 361 net new advisers in the half, bringing its adviser base to over 15,500, with 31% of the total market now using HUB24. The average FUA per adviser doubled over four years to $20 million, signaling deeper engagement and growing trust in the platform’s capabilities.

These gains are supported by HUB24’s consistent recognition as Australia’s best platform for the third consecutive year, including top rankings for managed account capability, product offering, and adviser support tools. The platform’s reputation for innovation and customer service continues to attract advisers seeking scalable, efficient solutions.

Technology and Product Innovation

HUB24’s Tech Solutions segment, which includes Class and NowInfinity, also delivered solid growth with revenue up 9% and underlying EBITDA increasing 37% to $13.8 million. The company is investing heavily in automation, AI, and integrated data solutions to enhance adviser productivity and client experience. Initiatives like the pilot of the Engage client reporting tool and strategic alliances to broaden alternative investment access highlight HUB24’s commitment to evolving its technology ecosystem.

These innovations aim to address industry challenges such as increasing regulatory complexity, rising advice delivery costs, and the growing demand for managed portfolios. HUB24’s integrated platform approach offers advisers a single view of wealth and streamlined access to a broad range of investment options.

Outlook and Strategic Positioning

Looking ahead, HUB24 is well positioned to capitalize on structural growth drivers including the increasing demand for financial advice, a wave of intergenerational wealth transfer, and the shift of advisers to privately owned licensees. The company targets platform FUA of $123 billion to $135 billion by FY26, supported by expected net inflows of $11 billion to $15 billion annually and ongoing large migrations from competitors.

HUB24’s strategy focuses on deepening market penetration, expanding product offerings, and leveraging technology to create efficiencies and enhance client outcomes. With a strong balance sheet, net cash of $73 million, and a fully franked interim dividend up 30% to 24 cents per share, the company balances growth investment with shareholder returns.

As the wealth management industry continues to transform, HUB24’s integrated platform and technology solutions position it as a key beneficiary of evolving adviser and client needs.