Highlights

• FY26 total Revenue rose 23% to A$501.1 million, and underlying net profit after tax rose 40% to A$137.3 million.

• Total funds under administration reached A$164.3 billion at 30 June 2026, up 20 per cent.

• Platform net inflows were A$4.0 billion in the first quarter of FY27, 23 per cent below the same quarter a year earlier.

• The company reaffirmed a target of A$186 billion to A$200 billion in platform funds under administration by FY28.

How is HUB24 (ASX:HUB) holding up now that the momentum behind its record year has cooled? The platform provider reported record FY26 Earnings in August 2026. Its first-quarter FY27 update on 20 October showed platform net inflows of A$4.0 billion, 23 per cent below the same quarter a year earlier.

What HUB24 does and how it earns money

HUB24 runs an Investment and Superannuation platform used by financial advisers to manage their clients' portfolios. It holds managed accounts, shares, managed funds and super. HUB24 earns most of its revenue from administration fees charged as a percentage of funds under administration (FUA), so revenue rises with both net inflows and investment market movements.

The group also owns PARS, a portfolio administration and reporting business, along with technology and data services sold to licensees and advisers. In FY26, platform revenue rose 26 per cent to A$406.9 million out of total revenue of A$501.1 million. That makes the platform the main earnings engine.

A record FY26 result

For the year to 30 June 2026, HUB24 reported total revenue up 23 per cent to A$501.1 million and underlying EBITDA up 30 per cent to A$211.4 million. Underlying net profit after tax rose 40 per cent to A$137.3 million, while statutory NPAT increased 51 per cent to A$120.2 million.

Total FUA reached A$164.3 billion at 30 June 2026, up 20 per cent. That figure comprised A$139.5 billion of platform FUA and A$24.8 billion in PARS. Platform net inflows for the year were A$18.9 billion.

The board declared a fully franked final Dividend of 42.0 cents a share, taking FY26 dividends to 78.0 cents, up 39 per cent. Active advisers using the platform rose 11 per cent to 5,649, and the company signed 148 new licensee agreements during the year.

Planned milestones include piloting its "myhub" client ecosystem in the first half of FY27, and completing the Acquisition of a superannuation Trustee business, subject to approvals.

The September quarter in detail

The first-quarter update gave a more detailed view of current trading. Platform net inflows of A$4.0 billion compared with A$5.2 billion a year earlier.

Funds still grew. Total FUA, including PARS, reached A$168.6 billion, up 15 per cent. HUB24 added 211 active advisers, taking the total to 5,860, and signed 45 new licensee agreements.

HUB24 called the period "an encouraging start to FY27". It said super net inflows were resilient, gross super inflows were up on the prior year, and gross outflows were broadly stable as a share of average FUA. It linked weaker overall flows to a subdued macroeconomic environment and to recent and proposed tax changes, which can lead advisers and investors to delay decisions.

Competitive position

A re-acceleration would strengthen the case for HUB24 continuing to take market share.

Risks and what to watch

The most obvious near-term sensitivity is market levels. Because fees are tied to FUA, a sustained fall in share and bond prices would cut revenue even if net inflows held up. Fee pressure from competitors and large licensees is a longer-running risk across the platform industry.

Policy is another factor. HUB24 has itself pointed to tax changes as a drag on short-term flows, and further changes to superannuation taxation could affect adviser and client behaviour. The planned acquisition of HTFS Nominees, the trustee Business linked to the HUB24 Super Fund, still needs regulatory approval, so its timing is not guaranteed.

Over the coming months, the key indicators are quarterly net inflows, the trend in IDPS outflows, adviser numbers and progress towards the FY28 platform FUA target. The myhub pilot and new AI tools for advisers will show whether HUB24 can keep differentiating its product in a crowded market. Half-year results, expected around February 2027, will give the next full read on margins and earnings.