HUB24 (HUB) –4.18%: fell today following its June-quarter update, as the market focused on a softer quarterly net inflow result despite another year of strong growth across the platform.
Total funds under administration increased 20% year-on-year to A$164.3 billion, while Platform FUA rose 24% to A$139.5 billion. FY26 Platform net inflows reached A$18.9 billion, up 20%, supported by continued adviser growth and strong gross inflows.
4Q highlights:
- Total FUA of A$164.3 billion, up 20% year-on-year.
- Platform FUA of A$139.5 billion, up 24%.
- Platform gross inflows of A$9.22 billion, up 3.6%.
- Platform net inflows of A$4.19 billion, down 21%.
- FY26 Platform net inflows of A$18.9 billion, up 20%.
- Adviser numbers of 5,649, up 11%.
The weak point was quarterly Platform net inflows, which fell 21% from the prior corresponding period, though that period had some large on-off wins. Normalising that, net inflows were largely flat on the same time last year which is not ideal.
While gross inflows remained healthy, the softer net result suggests less favourable transfer activity, with the result short of the strong momentum investors had come to expect from HUB.
The reaction also needs to be viewed against elevated expectations. Consensus earnings forecasts had continued to rise, while recent broker commentary remained supportive, including Macquarie’s upgrade to Outperform earlier this month. Against that backdrop, a softer quarterly inflow print was enough to trigger some profit-taking.
Overall, the quarterly net inflow result was below expectations, but the broader update remains constructive. HUB delivered 20% growth in annual net inflows, 24% growth in Platform FUA and continued to expand its adviser base. We continue to like the long-term structural growth story, although today’s reaction highlights the high expectations already embedded in the share price.
MM remains cautiously bullish HUB ~$81
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