Key Highlights

• In its first-quarter FY27 update, released on 20 October 2026, HUB24 reported total funds under administration (FUA) of $168.6 billion at 30 September 2026, up 15 per cent on a year earlier.

• Platform FUA was $143.7 billion, up 3 per cent over the quarter from $139.5 billion at 30 June 2026 and 18 per cent year on year.

• Market movements added about $0.2 billion to platform FUA.

• HUB24 called the quarter a encouraging start to the financial year despite a subdued macroeconomic environment.

How is HUB24 (ASX:HUB) still attracting record flows when the broader advice sector faces a subdued economic backdrop? The Australian platform and technology group reported platform net inflows of $4.0 billion for the September 2026 quarter, down 23 per cent on the prior corresponding period but the company says it has still ranked first for platform net inflows for eleven consecutive quarters.

The September quarter update

In its first-quarter FY27 update, released on 20 October 2026, HUB24 reported total funds under administration (FUA) of $168.6 billion at 30 September 2026, up 15 per cent on a year earlier. Platform FUA was $143.7 billion, up 3 per cent over the quarter from $139.5 billion at 30 June 2026 and 18 per cent year on year. Market movements added about $0.2 billion to platform FUA.

Gross platform inflows were $8.635 billion. Superannuation gross inflows rose on the prior period, while investor directed portfolio service (IDPS) gross and net inflows fell. HUB24 called the quarter a encouraging start to the financial year despite a subdued macroeconomic environment.

The company added 211 advisers in the quarter, taking active platform advisers to 5,860, and signed 45 new licensee agreements.

What HUB24 does and how it earns revenue

HUB24 operates an Investment platform used by financial advisers to hold and administer client portfolios, covering superannuation, pensions and managed accounts. Platform Revenue is driven mainly by the value of Assets administered, so inflows, market movements and fee margins all matter. A second segment, Tech Solutions, includes the Class SMSF administration software and NowInfinity, a corporate compliance business.

In FY26, group revenue was $501.1 million, up 23 per cent, of which platform revenue was $406.9 million and Tech Solutions $84.0 million. The company also runs a portfolio and reporting service known as PARS, which had about $24.9 billion in FUA at September 2026.

FY26 results: growth and margin

For the year to 30 June 2026, HUB24 reported underlying EBITDA of $211.4 million, up 30 per cent, and a group underlying EBITDA Margin of 42.2 per cent. Underlying net profit after tax was $137.3 million, up 40 per cent, while statutory profit was $120.2 million, up 51 per cent.

The full-year Dividend was 78.0 cents per share, fully franked, including a final dividend of 42.0 cents. Net cash was $41 million. FY26 platform net inflows were $18.9 billion, and FY26 total FUA reached $164.3 billion.

Guidance and strategy

The company gave qualitative guidance for FY27: group and platform underlying EBITDA margins are expected to be flat to slightly higher, with expense growth in the low to mid teens as it adds around 100 staff. Custody fee compression is expected to trim the platform revenue margin by 0.5 to 1 basis point. For FY28, the platform FUA target is $186 billion to $200 billion, excluding PARS.

Strategic initiatives include the myhub Wealth technology ecosystem, with the first AI-enabled release for advisers described as due in the coming weeks, a retirement income solution developed with TAL, and a Private Invest offering for wholesale clients. A Partnership with Frontier Advisors and Reach Alts is intended to widen access to private markets. HUB24 also plans to acquire HTFS Nominees, a superannuation trustee, with completion expected in the first half of FY27 subject to approvals.

Competitive position and sector conditions

HUB24 ranks as the sixth-largest platform by FUA, with Market Share of 10.1 per cent based on Plan for Life data to 30 June 2026, up from 9.0 per cent a year earlier. It reports leading net inflows among platforms for eleven consecutive quarters.

The competitive set includes large bank-owned and institutional platforms as well as independent rivals. HUB24's pitch is an open architecture, modern technology and a wide investment menu. That has helped it win share, but incumbents can respond with pricing and technology investment, and adviser licensees can switch platforms when they believe it benefits clients.

Industry conditions are mixed. Demand for advice and a growing superannuation system support long-term growth, and HUB24 cited structural demand and tax changes as drivers. At the same time, markets and investor confidence can swing, and tax uncertainty may delay client decisions.

Risks and upcoming developments

The most visible risk is slower inflows. Net inflows in the September quarter were down on the prior year, and management acknowledged an uptick in outflows from discretionary IDPS accounts in its FY26 commentary. If that persists, it could weigh on platform FUA growth.

Fee compression is a structural issue: as balances grow, the revenue margin tends to fall. Expense growth in the low to mid teens also means that margin expansion depends on continued revenue growth. Acquisitions such as HTFS Nominees bring regulatory approval and integration risk, and the new Debt Facility adds some leverage, although the company reported net cash at 30 June 2026.

Upcoming events to watch include the release of the first myhub AI features, completion of the Trustee acquisition, the December quarter update and the half-year result for FY27. Each will help show whether growth can be sustained alongside continued investment in technology and people.

Balancing the picture

HUB24 has delivered encouraging profit growth and market share gains, supported by a broad product set. The question for the next phase is whether it can keep winning flows as competition and fee pressure persist.