HUB24’s growth story continues amid rising competition

HUB24 (HUB) has long thrived on momentum, consistently delivering strong operating results. While this reporting season saw it fall short of elevated market expectations, the underlying performance was solid and continues to demonstrate why HUB remains a market favourite.

The wealth platform, once seen as a disruptor, has carved out a meaningful slice of the adviser market, riding a wave of flows that pushed total funds under administration (FUA) up 30% to $136.4 billion. Platform FUA rose 34% to $112.7 billion, right in line with expectations, confirming that the growth engine is still humming even as the pace shows early signs of normalising.

“Our FY25 results delivered underlying EBITDA of $162.4 million, up 38%, with total dividends rising 47% to 56 cps,” said Andrew Alcock, HUB24’s Managing Director & CEO. 

“We remain Australia’s best platform, with strong net inflows and an integrated approach driving sustainable growth and long-term value for customers and shareholders.”

Revenue climbed 24% to $406.6 million, slightly below forecasts, while net profit after tax jumped 44% to $97.8 million, a 2% beat. The total dividend of 56 cps reflects a 47% lift on FY24, underscoring HUB24's ability to convert flows into earnings and shareholder returns. 

For investors, the key takeaway is momentum. HUB24 continues to compound growth while returning more capital, and guidance of $148-162 billion in platform FUA by FY27 sits comfortably around consensus. 

The challenge now is whether HUB24 can maintain adviser flows and defend margins in a crowded platform market that's seeing technology spend and regulation rise. The question now: how long can it defend its edge in a tightening, competitive market?

To this end, I spoke to Sam Koch of Wilson Asset Management to gain his insights on Hub24's results, his view on valuation and whether he rates the stock as a buy, hold or sell. 

HUB24 (ASX: HUB) results

The below estimates refer to Morgan Stanley numbers as of 17 July, 2025:

• Total FUA up 30% to $136.4bn
• Platform FUA up 34% to $112.7bn vs. $112.7bn ests (in-line)
• Revenue up 24% to $406.6m vs. $413.2m ests (2% miss)
• Underlying EBITDA up 38% to $162.4m vs. $164.6m ests (1% miss)
• Underlying NPAT up 44% to $97.8m vs. $95.6m ests (2% beat)
• Total dividend up 47% to 56 cps vs. 57.3 cps ests (2% miss)
• FY26 platform FUA guidance between $148-162bn for FY27

For more information and market data on HUB24, please visit Market Index.  

What was the key takeaway from HUB24’s results in one sentence?

It was a mixed result. Operating performance was solid but fell short of elevated market expectations. Importantly, leading indicators remain positive and structural growth drivers are intact.

Were there any surprises in this result that you think investors need to be aware of?

The key drag on their result was MyProsperity, which lost ~$4m EBITDA, versus consensus expectations of ~$2m. My Prosperity was acquired by HUB two years ago. MyProsperity losses widened year on year, so investors will be asking for greater clarity on the path to profitability.

Would you buy, hold or sell HUB24 off the back of this result?

RATING: BUY

Structural growth drivers remain compelling:

1. FY2025 adviser growth is the strongest it has been since FY21
2. HUB only services 33% of advisers, despite distribution agreements covering 77% of the market.
3. Average FUA per adviser is $22m, well below the industry average of $76m, highlighting significant upside.
4. Secular industry tailwinds, being the growth in adviser numbers and client assets.

All of these drivers continue to support revenue growth and margin expansion over time. We currently hold HUB and have done so since 2021.

Are there any risks investors need to be aware of?

Valuation. 

The market is pricing in a few years of earnings growth from here, and HUB needs to continue to deliver as they have done in the past in order for the share price to continue trading positively. 

From 1 to 5, where 1 is cheap and 5 is expensive, how much value are you seeing on the ASX today?

RATING: 4

The market has rallied strongly since Liberation Day, but there are still pockets of opportunity across the broader market that we are taking advantage of.