Can HUB24 Sustain Its Breakout Growth Amid Rising Market and Regulatory Risks?

Strong Financial Momentum

HUB24 Limited has delivered a standout financial performance for the fiscal year ended 30 June 2025, reporting a 24% increase in total revenue to $406.6 million. Underlying net profit after tax (NPAT) surged 44% to $97.8 million, reflecting the company’s successful execution of its growth strategy and operational efficiencies.

The company’s platform funds under administration (FUA), a key metric for wealth management technology providers, grew 34% to $112.7 billion. Total FUA, including non-custodial portfolios, rose 30% to $136.4 billion, underscoring strong client inflows and market share gains.

Dividend Growth and Capital Management

Reflecting its robust earnings and cash flow generation, HUB24 declared a fully franked dividend of 56 cents per share for FY25, a 47% increase over the prior year. This dividend payout aligns with the company’s policy targeting 40% to 60% of underlying NPAT, signaling disciplined capital management and confidence in future cash flows.

The company also continued its prudent capital management approach, maintaining undrawn credit facilities and purchasing $54 million of treasury shares to offset dilution from employee share schemes. The balance sheet remains strong with net cash and equivalents of $84.8 million after borrowings.

Strategic Progress and Market Leadership

HUB24’s growth was driven by record platform net inflows of $19.8 billion, including $4 billion from large client migrations. The platform now supports over 5,000 active financial advisers, a 13% increase year-on-year, and has expanded its market share to 8.7%, ranking seventh nationally.

The company’s Tech Solutions segment, comprising Class, NowInfinity, and HUBconnect, also posted solid revenue growth of 9%, supported by the largest increase in Class accounts since FY20 and strong adoption of NowInfinity’s corporate compliance solutions.

Innovation remains a core focus, with investments in AI, machine learning, and client portal technologies enhancing adviser productivity and client engagement. HUB24’s integrated ecosystem approach positions it well to capitalize on industry transformation and evolving customer needs.

Governance, Sustainability, and Executive Remuneration

The Board maintained a strong commitment to corporate governance, risk management, and sustainability. The company met gender diversity targets with a balanced Board and leadership team, improved employee engagement to 78%, and advanced its net zero emissions goal for Scope 1 and 2 by 2030.

Executive remuneration was adjusted to reflect the company’s scale and complexity, including increased short-term incentive deferral periods and the introduction of long-term incentive hurdles based on earnings per share and strategic growth metrics. These measures aim to align leadership incentives with shareholder value creation and long-term performance.

Outlook

Looking ahead, HUB24 has set an ambitious FY27 platform FUA target range of $148 billion to $162 billion, excluding non-custodial portfolios. The company’s strong pipeline, innovation focus, and integrated platform position it well to sustain growth and deliver value to shareholders and customers alike.