Key Highlights

  • HUB24 reported record full-year Earnings for FY26.
  • Platform net inflows were A$4.0 billion in the latest quarterly update, down 23% on the prior corresponding period.
  • Revenue is largely driven by funds under administration, so net inflows and market movements are the key operating variables.
  • The group's Operating Leverage means underlying earnings can grow faster than revenue, but the reverse applies if inflows slow.

Why is HUB24 (ASX:HUB) drawing attention when its Business is reporting record profits yet its shares have lagged the broader market? The Investment platform provider reported record full-year earnings for FY26 on 18 August 2026, but its latest quarterly update on 20 October 2026 showed platform net inflows of A$4.0bn, down 23% on the prior corresponding period. Investors are weighing how long a growth premium can be justified when inflows are normalising from an exceptional base.

What HUB24 does and how it earns revenue

HUB24 runs an Australian Wealth platform used by financial advisers to hold and administer client investments, Superannuation and retirement portfolios. Revenue is largely driven by funds under administration (FUA), because administration and related fees scale with the balances on the platform. The group also owns smaller businesses, including the Class division, which provides self-managed super fund software and administration, and NowInfinity, a corporate-document provider.

Once the platform is built, additional FUA tends to add revenue faster than costs, which is one reason underlying earnings grew faster than revenue in FY26. The relationship works in reverse if inflows slow or markets fall.

FY26 results: reported figures

Total revenue of A$501.1m, up 23%.

Underlying group EBITDA of A$211.4m, up 30%.

Underlying net profit after tax of A$137.3m, up 40%; statutory NPAT of A$120.2m, up 51%.

Total FUA of A$164.3bn, up 20%, with platform net inflows of A$18.9bn.

A fully franked final Dividend of 42.0 cents per share, taking FY26 dividends to 78.0 cents, up 39%.

Active advisers of 5,649, up 11%, and 148 new licensee agreements.

The company also said it ranked first for platform net inflows for the tenth consecutive quarter and that its non-custodial and private investment solutions passed A$1bn of FUA. These are company-reported or figures; The company's disclosures cover them against the full results release on the ASX.

The September 2026 quarter update

HUB24's first-quarter FY27 update, released on 20 October 2026, showed total FUA of A$168.6bn at 30 September 2026, up 15% year on year, and platform FUA of A$143.7bn, up 18%. Platform net inflows were A$4.0bn, down 23% on the prior corresponding period. The company signed 45 new licensee agreements and reported 5,860 active advisers, up 12%. It again ranked first for quarterly and annual net inflows, which it described as the eleventh straight quarter.

Inflows remain large in absolute terms and the company says it is still winning share, but the year-on-year decline is the sort of figure that can pressure a stock priced for sustained acceleration.

Targets and corporate actions

In its FY26 release, HUB24 stated a platform FUA target of A$186bn to A$200bn by FY28, excluding PARS FUA. That is management's target rather than a forecast, and it depends on both inflows and market levels. The company also plans to pilot its myhub ecosystem in the first half of FY27, and it has exercised its option to acquire the Trustee of the HUB24 Super Fund, with completion expected in the first half of FY27 subject to regulatory approvals. The October update said the HTFS Nominees Acquisition was still awaiting approval.

Sector and competitive position

Australia's advised platform market is concentrated among a handful of providers, with HUB24 and Netwealth the main challengers to incumbent platforms operated by larger banks and wealth groups. Structural tailwinds include an ageing population, rising superannuation balances and advisers shifting away from legacy bank-owned platforms.

Risks to watch

Inflow volatility: platform inflows can be lumpy, partly because large migrations from other platforms distort comparisons. The company noted that FY26 inflows were up 20% when large prior-year migrations are excluded.

Market exposure: revenue is linked to FUA, so falls in Equity markets reduce earnings even without client outflows.

Competition and pricing: rival platforms are competing for the same advisers and licensees.

Regulation: changes to superannuation, advice and platform rules could affect costs and demand.

What to monitor next

Progress on the myhub pilot will indicate whether product expansion is translating into new revenue.

HUB24's story is currently one of encouraging delivery meeting heightened scrutiny. The FY26 numbers are encouraging and the platform is still gaining advisers, but the market is testing whether a slower inflow pace can still support the growth narrative.