HUB24 Ltd is higher after recording a robust financial performance for the half-year ended December 31, 2024 (1HFY25), with significant growth across key metrics.
Shares are 7.2% higher at midday to $87.21.
The company recorded Group Underlying EBITDA of $77.6 million, marking a 41% increase from 1HFY24.
Group Underlying Net Profit After Tax (NPAT) rose 40% to $42.6 million, while statutory NPAT increased 54% to $33.2 million. Underlying Diluted Earnings per Share climbed 41% to 51.0 cents.
The directors declared a fully franked interim dividend of 24.0 cents per share, up 30% on 1HFY24, payable on 15 April 2025.
Strong FUA growth and record inflows
Total (EPA:TTEF) Funds Under Administration (FUA) reached $120.9 billion as of December 31, 2024. Platform FUA grew to $98.9 billion, increasing to $102.6 billion by 13 February 2025. Portfolio, Administration and Reporting Services (PARS) FUA stood at $22 billion.
Key highlights for 1HFY25 include:
- Record half-year Platform net inflows of $9.5 billion (up 31% on 1HFY24).
- Platform segment revenue of $154.2 million (up 29%) with an Underlying EBITDA of $66.7 million (up 39%).
- Tech Solutions (OTC:TSCC) segment revenue of $38.0 million (up 9%) and Underlying EBITDA of $13.8 million (up 37%).
- Total revenue increased 25% to $195.2 million, driven by platform growth.
- Awarded 'Best Platform Overall' and 'Best Platform Managed Accounts Functionality'.
Operational efficiency and platform expansion
The company continued investing in scalability and automation, with Group Operating Expenses rising 16% to $117.6 million, primarily due to higher variable costs linked to FUA and workforce investment. The Group Underlying EBITDA margin improved to 39.8%, up from 35.1% in 1HFY24.
HUB24 further strengthened its platform leadership, achieving first place for quarterly and annual net inflows. The number of advisers using the platform increased by 361 to 4,886, with 84 new distribution agreements signed. Market share rose to 7.9% from 6.6% in September 2023.
The HUB24 platform also introduced enhancements to advice fee consent capabilities and launched 'Engage', an advanced client reporting tool leveraging HUBconnect.
Additionally, HUB24 Super was selected as the successor fund for ClearView WealthFoundations, with up to $1.3 billion in FUA expected to transition in 2HFY25.
Tech solutions and innovation
Class, a key component of Tech Solutions, continued to grow, maintaining its position as Australia’s second-largest SMSF software provider.
NowInfinity expanded its administered companies beyond system growth. The division introduced new property valuation and title search capabilities along with improved connectivity to major share registries and institutional document feeds.
Investment in AI, machine learning, and automation continued, with HUB24 collaborating with 'think tank' licensees to develop solutions for financial advisers. The company also expanded myprosperity’s secure client portal capabilities across multiple advisory networks.
Outlook and upgraded FY26 target
Due to strong net inflows and market movements, HUB24 has upgraded its FY26 Platform FUA target to a range of $123 billion to $135 billion, up from the previous $115 billion to $123 billion estimate.
“We have delivered strong financial results for 1HFY25, with Group Revenue up 25% to $195.2 million and Underlying NPAT increasing 40% to $42.6 million. Given this performance, we have declared a fully franked interim dividend of 24.0 cents per share," HUB24 CEO and managing director Andrew Alcock said.
“As well as achieving record net inflows, we are pleased to be recognised again as Australia’s Best Platform. With significant growth opportunities across the group, we remain focused on enhancing our capabilities to support financial professionals in empowering better financial futures for their clients.”