Rising Costs and Ambitious Expansion Pose Challenges for HUB24’s Growth

Market Leadership and Growth Momentum

HUB24 Limited (ASX – HUB) reaffirmed its position as a leading player in Australia's wealth management technology sector during its Investor Strategy Day on 27 November 2025. The company reported record net inflows of $19.8 billion for FY25, underscoring robust demand for its integrated platform solutions. Active advisers on the HUB24 platform surpassed 5,200, reflecting strong adoption and expanding market penetration.

HUB24's platform continues to dominate across multiple market segments, including high net worth, mass affluent, and mass market clients. The company’s platform was ranked number one for net promoter score and overall satisfaction, a testament to its customer-centric approach and technological innovation.

Strategic Innovation and Product Expansion

The group highlighted its ongoing commitment to innovation, particularly through the development of the myhub ecosystem, designed to enhance adviser productivity by integrating AI and data-driven insights. The upcoming launch of Lifetime Retirement Solutions, developed in partnership with TAL, aims to address growing retirement income concerns among Australians, offering guaranteed income products that manage longevity risk.

HUB24 also emphasized the growth of its Class and NowInfinity businesses, which provide market-leading SMSF administration and corporate compliance solutions. These units are benefiting from structural tailwinds such as increasing SMSF establishments and corporate registrations, with Class holding a 30.5% market share in SMSF software.

Financial Strength and Future Outlook

Financially, HUB24 demonstrated strong revenue growth with a four-year compound annual growth rate (CAGR) of 38% and underlying earnings before interest, tax, depreciation, and amortization (UEBITDA) growth of 46%. The company maintains a robust balance sheet with a net cash position of $85 million as of June 2025, providing capital flexibility to support ongoing investments.

Looking ahead, HUB24 targets platform funds under administration (FUA) of $148-162 billion by FY27, supported by continued adviser growth and market share gains. The company plans to increase operating expenses by 18-20% in FY26 to fund technology enhancements and scale its product offerings, particularly the myhub ecosystem.

Industry Tailwinds and Competitive Positioning

HUB24 is well positioned to capitalize on structural growth drivers such as the increasing demand for financial advice, intergenerational wealth transfer, and the shift towards integrated technology platforms. The company’s focus on data integration, AI-powered tools, and secure client solutions addresses key industry challenges around efficiency, compliance, and cybersecurity.

With a comprehensive suite of products spanning platform services, SMSF administration, and client engagement portals, HUB24 aims to deepen customer relationships and drive long-term shareholder value. Its strategy to leverage group capabilities and emerging technologies signals a forward-looking approach to industry transformation.