HUB24 Limited has reported a standout FY25 with robust revenue growth, record net inflows, and a significant dividend increase, reinforcing its leadership in Australia's wealth management platform sector.
- 24% revenue growth to $406.6 million
- Platform funds under administration up 34% to $112.7 billion
- Record net inflows of $19.8 billion in FY25
- Underlying NPAT increased 44% to $97.8 million
- Dividend payout up 47% to 56.0 cents per share, fully franked
Strong Financial Performance Amid Market Leadership
HUB24 Limited has delivered an impressive FY25 financial performance, underscoring its position as a leading player in Australia's wealth management platform sector. The company reported a 24% increase in revenue to $406.6 million, driven primarily by a 34% surge in platform funds under administration (FUA) to $112.7 billion. This growth was fueled by record net inflows of $19.8 billion alongside positive market movements, reflecting strong adviser and client engagement.
Underlying net profit after tax (NPAT) rose 44% to $97.8 million, while statutory NPAT climbed 68% to $79.5 million. These results highlight HUB24’s scalable business model and operational leverage, with an underlying EBITDA margin expanding to nearly 40%. The company’s platform segment, which accounts for the bulk of revenue, saw a 39% increase in underlying EBITDA to $142.9 million, supported by both inflows and efficiency gains.
Market Share Gains and Adviser Growth
HUB24’s market share climbed to 8.7%, up 1.4 percentage points over the past year, placing it seventh by FUA among Australian platforms. Notably, HUB24 achieved the highest net inflows across all superannuation funds for six consecutive quarters, a testament to its strong adviser advocacy and client satisfaction. The number of financial advisers using HUB24 increased by 572 in FY25, the largest rise since FY21, with 33% of advisers now on the platform; up from 16% four years ago.
Funds under administration per adviser also grew significantly, reaching $22 million, though still below the industry average of $76 million, indicating substantial room for further growth. HUB24’s strategy to deepen relationships with existing advisers and attract new ones is central to its growth outlook, supported by ongoing platform enhancements and innovative product offerings.
Innovation and Technology Investment
Beyond financial metrics, HUB24 continues to invest heavily in technology and innovation. Its Tech Solutions division, encompassing Class, NowInfinity, and myprosperity, reported 9% revenue growth and a 23% increase in EBITDA, reflecting accelerating adoption of cloud-based wealth accounting and compliance solutions. The launch of Engage, an advanced reporting tool leveraging HUBconnect, exemplifies HUB24’s commitment to enhancing adviser productivity and client experience through data integration and AI-driven capabilities.
The company is also advancing sustainability initiatives, targeting net zero Scope 1 and 2 emissions by 2030, and maintaining strong employee engagement and diversity programs. These efforts align with HUB24’s broader vision to lead industry transformation while delivering shareholder value.
Outlook and Strategic Priorities
Looking ahead, HUB24 aims to grow platform FUA to between $148 billion and $162 billion by FY27, driven by continued net inflows and market growth. The company acknowledges potential outflows related to the planned closure of the Xplore Wealth Managed Discretionary Account service but considers the impact immaterial to overall earnings. HUB24’s strategy focuses on expanding market share, leveraging its integrated technology ecosystem, and capitalising on structural growth trends in the Australian wealth management sector.
With a strong balance sheet, including $85 million net cash and disciplined capital management, HUB24 is well positioned to sustain investment in innovation, scale operations, and deliver growing dividends. The company’s total FY25 dividend of 56.0 cents per share represents a 47% increase year-on-year, reflecting confidence in ongoing profitability and cash flow generation.
Bottom Line?
HUB24’s FY25 results cement its leadership and set the stage for ambitious growth amid evolving adviser and client demands.
Questions in the middle?
- How will HUB24 mitigate potential outflows from the Xplore Wealth MDA closure?
- What impact will rising competition have on HUB24’s market share gains?
- How effectively can HUB24 leverage AI and technology to sustain adviser productivity and client satisfaction?