Hub24 1H25 Earnings Call Highlights

Hub24 (ASX: HUB) shares briefly rallied 13.8% on Tuesday after reporting a mixed half-year FY25 result.

Earnings Summary

• Revenue up 24.6% to $195.2 million (2.5% beat vs. consensus)

• EBITDA up 41.1% to $77.6 million (5.4% beat)

• Adjusted NPAT up 40.1% to $42.6 million (0.6% miss)

• Dividend up 29.7% to 24 cents per share (2.6% miss)

• Upgraded FY26 funds under management guidance to $123-135 billion (from $115-123 billion)

Earnings Call Highlights

The below topics have been answered by CEO Andrew Alcock and CFO Kitrina Shanahan.

Market growth and advisers: “The industry has grown 17% FUA over the past 12 months. HUB24's market share increased from 6.6% to 7.9%, the largest gain in the industry. Adviser usage of HUB24 has grown from 11% in 1H 2021 to 31% in 1H 2025, with 361 net new advisers this half.”

Technology investment: “We continue to enhance the platform, evidenced by our Investment Trends awards. Our award-winning reporting capability is evolving into Engage with Edison, receiving positive feedback from advisers.”

Economic conditions: “Market conditions remain favorable for our industry, with continued adviser-led inflows and increased self-managed superfund establishments expected to drive future growth.”

Analyst Q&A Highlights

Net flow FUA guidance and key drivers:

• “The first six months of this half has been fantastic, $8 billion of underlying and $9.5 billion in total. And the pipeline is really strong, and the positive sentiment that we're seeing come from the distribution network is really strong.”

• “If all of those things hold, it absolutely looks like it could be at the upper end. But if any of those things change, then you could be down at the back end or the lower end of that pretty quickly.”

• “We do have a bigger base and market movement can affect that with more volatility. And should markets correct or we end up with zero market growth over a 12-month period, you can see that changing remarkably.”

Pipeline for large migrations:

• “There’s always activity… the nature of them is shifting. Once there are opportunities, there are opportunities like that, to pick up large transitions as opposed to migrations from licenses or businesses who are retooling or reconsidering their future.”

• “There is certainly momentum for unplanned flows from our perspective in terms of normal organic flow. In some cases, it might be large transitions, in other cases might be IT projects and migrations.”

Market movements in flows for Q3:

• “We had a strong quarter to December, and we had higher-than-expected flows in January. We normally budget January to be a lower month. So we certainly had higher flows than we expected in January and also in February to date.”

• “The ASX too was up 4.7% in the first 6 weeks. And so there's some market movement in there. We don’t correlate totally to that, but the flows are quite healthy.”

• “We have no indicator that [flows will slow], but we also say we can't say that there's a trend here for the first half to continue in the second half, but it looks fairly consistent.”

This article was generated with the support of AI and reviewed by an editor.