Key Highlights:

  • Both platforms reported record funds under administration (FUA) for FY26, yet their shares fell after the results as investors focused on softer near-term flows and flatter margins.
  • HUB24 was down about 28% for 2026 as of 23 September, and Netwealth hit a two-year low on 16 September.
  • Netwealth also faces a possible class action over First Guardian, and both stocks are exposed to a likely RBA rate rise next week.
  • Upcoming company updates and execution against stated plans remain central to the next phase for both stocks.

Netwealth and HUB24 are sliding together because investors are questioning the pace of future fund flows and profit margins, not the platforms' recent results. Rising interest rates, softer flows in some account types and, for Netwealth, fresh legal and deal news have added to the selling.

A tough backdrop for high-growth financial stocks

Australia's two biggest independent Wealth platforms have been among the most expensive stocks in the S&P/ASX 200, priced for years of strong growth. That leaves them exposed when Interest Rate expectations rise. The Reserve Bank lifted the cash rate to 4.35% in May, and Commonwealth Bank economists said on 21 September that they expect another 25 basis point rise at the RBA's meeting on 28–29 September.

Higher rates and bond yields tend to lower the value investors put on Earnings expected years from now. That matters for stocks like these, whose valuations depend on long-term growth. On 21 September, the Australian 10-year Bond Yield at 5.29%, with the S&P/ASX 200 closing flat at 8,731 points.

There is also a flows story. Both companies have pointed to "choppy" or softer conditions in some account types. They linked this to tax and budget settings that have led some clients to rethink how their investments are structured.

HUB24 (ASX:HUB): record results, sliding shares

HUB24 runs an Investment and Superannuation platform used by financial advisers. On 18 August it reported FY26 Revenue up 23% to $501.1 million, underlying net profit after tax up 40% to $137.3 million, and platform FUA up 24% to $139.5 billion. Record platform net inflows were $18.9 billion, excluding large migrations.

Even so, the shares fell 8.96% to $78.47 on results day, . At one stage during the session they were down 13.5%. Chief executive Andrew Alcock noted "an uptick in outflows in discretionary funds under administration" linked to budget settings. Management also guided to FY27 underlying EBITDA margins being "flat to slightly" higher, which suggested Margin growth was slowing.

The slide has continued. the shares at $70.38 on 17 September, down about 27% for 2026 and well below a 52-week high of $122.03. By 23 September they were near $69.31, down around 9% over the past month and 28% year to date. Earlier, in June, the stock hitting a 52-week low after weaker-than-expected third-quarter flows. It also noted that APRA had imposed new licence conditions on HUB24's superannuation trustee.

Brokers remain more positive than the market. published targets included Citi at $93.50, Jefferies at $93.75, JPMorgan at $98 and Jarden at $101. HUB24's own goal is platform FUA of $186 billion to $200 billion by FY28.

Netwealth (ASX:NWL): flows, a lawsuit threat and an AI deal

Netwealth's late-August FY26 result showed total income up 20.6% to $391.1 million, record net profit after tax of $135.4 million and FUA up 20.3% to $135.7 billion. It lifted the full-year Dividend to 42 cents. It set an FY27 net flow target of $18 billion to $20 billion. But it also guided to an EBITDA margin of around 47%, down from 49.1% in FY26, as it keeps investing. Management described early-FY27 conditions as "choppy".

September brought more headlines. Around 14–15 September, Netwealth agreed to buy Paradino, an AI tool that automates advisers' workflow. The deal is $20 million upfront, split between cash and escrowed shares, and could reach $39 million including earn-outs, retention payments and development spending. On 16 September the shares fell 5.67% to $17.48, touching a fresh two-year low, . That day's move was put down largely to weakness across financial stocks.

Then, on 21–22 September, Netwealth said its subsidiaries had received a letter foreshadowing a possible class action over First Guardian investment Options offered through its super fund. No proceedings have been filed. Netwealth said the claims relate to matters already dealt with through its court-enforceable undertaking with ASIC and a compensation program completed in January 2026. also reported the shares down about 6% on Friday 25 September. the stock down roughly a third this year.

What links the two sell-offs

The common thread is a reset in expectations. Both companies are still growing FUA at around 20% a year. But their share prices had assumed that growth would continue with rising margins. Softer flows in discretionary and non-super accounts, pressure on fees and heavy spending on technology have tested that assumption.

The two stocks are also often traded as a pair, so selling in one can spill over to the other. Fund managers who want to reduce exposure to high-multiple financial stocks often sell both. Where they differ is company-specific risk. HUB24 has faced Trustee regulation issues this year, while Netwealth now has First Guardian litigation risk and a new Acquisition to integrate.

What investors could watch next

The RBA's decision on 29 September is the nearest macro event. A rate rise has been widely expected, so the tone of the statement may matter as much as the decision itself. Both platforms usually publish first-quarter FY27 flow updates in October. Those updates should show whether the budget-related outflows have eased.

For Netwealth, key items are whether class action proceedings are actually filed and whether the Paradino deal completes, which is expected by the end of October. For HUB24, investors may watch progress towards its FY28 FUA target and any update on trustee licence conditions. Both companies usually hold annual general meetings late in the calendar year, where management may comment on trading.

The bottom line

Netwealth and HUB24 are falling together mainly because the market is paying less for their growth. Record FY26 results were overshadowed by softer flows, flatter margins and rising rate expectations. Netwealth has extra pressure from a threatened class action and a new acquisition, while HUB24 continues to deal with regulatory scrutiny of its super trustee. The October flow updates may give the clearest early read on whether conditions are stabilising.