Key Highlights

• The 20 October 2026 update reported total funds under administration (FUA) of $168.6 billion, about 15% higher than a year earlier.

• For the year ended 30 June 2026, reported on 18 August 2026, HUB24 recorded total Revenue of $501.1 million, up 23%.

• Active advisers on the platform rose to 5,860, an increase of 211 in the quarter and roughly 12% higher over twelve months, and 45 new licensee agreements were signed.

• Part of the weaker year-on-year figure reflects a very encouraging base: the first quarter of FY26 was previously reported as a record.

What does a quarter of lower net inflows mean for a platform Business that has spent years ranking first for flows? For HUB24 Limited (ASX:HUB), the September 2026 quarter update suggests growth is continuing but at a less spectacular pace than the prior year, and that the market is now asking whether the long run of record numbers can be sustained. The company reported platform net inflows of $4.0 billion for the quarter ended 30 September 2026, which was 23% lower than the prior corresponding period, even though it still ranked first for quarterly and annual net inflows for an eleventh consecutive quarter, according to coverage of its 20 October 2026 announcement.

The central development

HUB24 operates an Investment and Superannuation platform used mainly by Australian financial advisers, alongside a smaller Class division that provides software for self-managed super fund administration and a NowInfinity corporate-document business. The 20 October 2026 update reported total funds under administration (FUA) of $168.6 billion, about 15% higher than a year earlier. Platform FUA was $143.7 billion, up 18%. Active advisers on the platform rose to 5,860, an increase of 211 in the quarter and roughly 12% higher over twelve months, and 45 new licensee agreements were signed.

The headline number to watch is the inflow comparison. Part of the weaker year-on-year figure reflects a very encouraging base: the first quarter of FY26 was previously reported as a record. A fall from a record is not the same as a deterioration in competitive position, and HUB24 retained the top ranking among platforms for net inflows. Even so, shares have been weak.

Business model and revenue drivers

Platform revenue is driven mainly by FUA-based fees, supplemented by administration fees and, for some products, transaction and interest-related income. That makes revenue sensitive to two things: net flows from advisers and clients, and market movements in the underlying assets. HUB24 has also emphasised managed accounts, where advisers allocate client money to model portfolios, and a wider "ecosystem" strategy to retain more of each adviser's activity. In its FY26 results the company said it planned a pilot of its "myhub" client-facing ecosystem in the first half of FY27.

Growth in advisers matters because FUA per adviser is a key productivity measure. HUB24 states that it aims to increase FUA per adviser, and a rising adviser count combined with rising balances is the pattern it is trying to show. The longer-term tailwinds the company cites are compulsory superannuation contributions and growing Demand for professional advice.

FY26 results in context

For the year ended 30 June 2026, reported on 18 August 2026, HUB24 recorded total revenue of $501.1 million, up 23%. Underlying Group EBITDA was $211.4 million, up 30%. Underlying net profit after tax was $137.3 million, up 40%, while statutory net profit after tax was $120.2 million, up 51%. The gap between underlying and statutory profit is a reminder that the two measures are not interchangeable; investors should read the reconciliation in the company's Appendix 4E rather than relying on either figure alone.

Platform net inflows for FY26 were $18.9 billion and FUA reached $164.3 billion, up 20%. HUB24 reported that it ranked first for net inflows for the tenth consecutive quarter at that point, and active advisers numbered 5,649, up 11%. A final Dividend of 42.0 cents per share, fully franked, took total FY26 dividends to 78.0 cents per share, up 39%.

No explicit FY27 Earnings guidance appeared in the coverage reviewed.

Sector and competitive position

Australia's advised platform market is concentrated among a small group of operators, including Amp North, Netwealth, Insignia Financial's platforms and Macquarie. HUB24's recent ranking at the top of net inflows suggests it has been winning share, helped by technology and the breadth of its product set. Competitors are not standing still, and fee pressure is a persistent feature of the industry.

An adjacent development is the Acquisition of the Trustee of the HUB24 Super Fund. HUB24 exercised a Call Option in FY26, with completion expected in the first half of FY27 and subject to regulatory approvals. The September-quarter update notes the related HTFS Nominees acquisition is still awaiting approval. Owning the trustee gives the group more control over its super offering, but it also brings additional regulatory obligations.

Risks and what to monitor

Several risks deserve attention. First, flows can be lumpy; large migrations of client money from other platforms in a given period can inflate or depress comparisons, and the company has itself adjusted for prior-year large migrations when describing growth. Second, Equity and Bond Market falls reduce FUA irrespective of flows. Third, competition and fee compression could reduce margins. Fourth, regulatory change affecting advisers, superannuation or platform fees could alter demand. Fifth, execution risk applies to the ecosystem initiatives and to integrating any acquisitions.

Upcoming events include the myhub pilot in the first half of FY27, the expected completion of the trustee acquisition subject to approval, and the next quarterly platform update, which will show whether inflows stabilise relative to the elevated base.