HUB24 Limited – 2025 Half Year Results Summary

Website: HUB24

Overall Tone

HUB24 Limited reported strong financial results for the first half of FY25, driven by robust platform net inflows and continued expansion in funds under administration (FUA). The company achieved record revenue and profitability, with significant increases in net profit and earnings per share. Strategic acquisitions and product innovations have further strengthened HUB24’s market position in the wealth management technology sector.

Financial Results Summary

Metric	Dec-24	Dec-23	YoY Change
Revenue	$195.2M	$156.7M	+25%
Underlying EBITDA	$77.6M	$55.0M	+41%
Net Profit After Tax (NPAT)	$36.5M	$21.5M	+75%
Earnings Per Share (EPS)	40.92c	26.53c	+54%
Interim Dividend Per Share	24.0c	18.5c	+30%
Net Tangible Assets Per Share	$1.09	$0.87	+25%

Positive Surprises & Potential Concerns

• Positive: Platform net inflows of $9.5B (+31%), boosting total FUA to $120.9B (+33%).
• Positive: Strong growth in platform revenue (+29%), reflecting increasing adviser adoption.
• Concern: Higher operating expenses (+16% YoY), mainly due to strategic investments and acquisitions.
• Concern: No major cost savings initiatives disclosed, which could impact margins in a high-growth environment.

Outlook Commentary

• Continued growth expected in platform FUA, supported by adviser onboarding and product innovation.
• Expansion in tech solutions revenue, leveraging Class and HUBconnect platforms.
• Operational efficiencies and cost control measures to help sustain profit margin improvements.

Guidance Statements

• Revenue Growth: Expected to remain strong, with double-digit growth anticipated in 2H25.
• Profitability: Margins expected to improve, benefiting from scale efficiencies and operational leverage.
• Dividend Policy: Maintaining 40-60% payout ratio, with a focus on sustainable shareholder returns.

Result vs. Market Expectations

• Revenue and profit exceeded expectations, reflecting higher platform net inflows and strong cost discipline.
• Dividend increase (24.0c per share) was ahead of analyst estimates, reinforcing HUB24’s confidence in its growth outlook.
• Some concerns about rising costs, though market reaction remained positive given the overall earnings momentum.

Market Positioning

• Share price performance leading into results was strong, reflecting positive sentiment around HUB24’s market leadership.
• Trading near 52-week highs, with investors recognizing scalability and growth potential in the wealth tech sector.
• Continued investment in technology and acquisitions, positioning HUB24 as a leading provider in the financial services platform space.

This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.

Quick Take: H1FY25 ASX:HUB