HUB24’s Market Share Gains Challenge Sustainability Amid Rising Costs

Robust Financial Growth

HUB24 Limited has delivered an impressive set of results for the fiscal year ended June 30, 2025, posting underlying group EBITDA of $162.4 million, a 38% increase over the previous year. This strong financial performance was underpinned by a 24% rise in total revenue to $406.6 million, driven primarily by the platform segment’s growth and steady gains in technology solutions.

Statutory net profit after tax surged 68% to $79.5 million, while underlying NPAT climbed 44% to $97.8 million. Reflecting this robust profitability, HUB24’s board declared a fully franked final dividend of 32 cents per share, bringing the total dividend for FY25 to 56 cents per share, a substantial 47% increase from FY24.

Market Share and Platform Momentum

The company’s platform business continues to be the engine of growth, with net inflows reaching a record $19.8 billion, up 25% year-on-year. This includes $4 billion from large client migrations, contributing to a 30% increase in total funds under administration (FUA) to $136.4 billion. Platform FUA alone rose 34% to $112.7 billion, with market share expanding from 7.2% to 8.7% as of March 2025.

HUB24’s platform has now topped net inflow rankings for six consecutive quarters, a testament to its strong appeal among financial advisers. The number of active advisers using the platform grew 13% to over 5,000, supported by 143 new distribution agreements signed during the year. Industry surveys continue to recognise HUB24 as Australia’s leading platform, praised for innovation and customer service excellence.

Innovation and Strategic Enhancements

HUB24 has not rested on its laurels, investing heavily in technology and product development. Key enhancements launched in FY25 include award-winning advice fee consent capabilities, expanded portfolio manager options, improved client cash management, and the rollout of 'Engage', a next-generation reporting tool. The introduction of HUB24 Private Invest targets high-net-worth clients, while a strategic alliance with Reach Alternative Investments opens access to private markets.

Complementing the platform, HUB24’s Class and NowInfinity businesses also advanced their market positions. Class was recognised as the most feature-rich SMSF software provider, while NowInfinity earned accolades for innovation and legal document services. Both units released new integrations and AI-powered tools to boost efficiency for accountants and auditors.

Looking Ahead

With positive momentum across its integrated platform, technology, and data solutions, HUB24 is targeting further growth. The company has set a Platform FUA target range of $148 billion to $162 billion by FY27, excluding PARS FUA. CEO Andrew Alcock emphasised the company’s commitment to innovation and delivering long-term value to shareholders and customers alike.

While HUB24’s outlook is optimistic, it remains contingent on stable investment markets and maintaining favourable terms of business. Nonetheless, the company’s strong FY25 performance and strategic initiatives position it well to continue leading Australia’s wealth management platform sector.