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Highlights
- Hub24 reports record quarterly inflows and rising market share.
- Total funds under administration increase significantly year over year.
- Strategic partnership formed to enhance alternative investment options.
Hub24 Ltd (ASX:HUB) has shared its first-quarter update for FY25, which highlights its strong financial performance and ongoing growth. As a leading financial technology provider, Hub24 offers a range of services for financial advisers and their clients through its platform, including managed portfolio solutions and enhanced reporting functionality.
FY25 Q1 Performance Overview
In the first quarter of FY25, Hub24 recorded platform net inflows of $4 billion, reflecting an impressive 44% increase. These figures exclude large migrations, which further underscore the company’s organic growth. As of 30 September 2024, Hub24 reported a total of $113 billion in funds under administration (FUA), marking a 37% rise compared to the previous year.
Breaking down the FUA figures, the platform FUA amounted to $91.6 billion, showing a 41% year-over-year growth. Meanwhile, the portfolio, administration, and reporting services (PARS) accounted for $21.4 billion, which was a 21% increase year on year.
Rankings and Market Share Growth
The company achieved a significant milestone by being ranked first in both quarterly and annual net inflows among platform providers. Hub24’s market share rose to 7.7%, up from 6.3% as of 30 June 2023, solidifying its position in seventh place overall in the industry.
Hub24 is also progressing with its EQT migrations, with $1.5 billion in FUA migrated in early October 2024. In total, $4.1 billion has been migrated to date, with an expected total of $5 billion in FUA from EQT migrations by the end of FY25.
Strategic Alliance and Future Growth
Hub24 announced a strategic partnership with Reach Alternative Investments, in which it has taken a minority stake. This collaboration is set to enhance the range of alternative investment options available on the platform, meeting the increasing demand from both advisers and their clients.
The company’s strong performance in FY25 Q1 highlights its continued market leadership. Hub24 is confident in its ability to meet its FY26 target of having platform FUA between $115 billion to $123 billion. This growth trajectory, combined with its focus on customer service, positions Hub24 well for future developments in the fintech industry.
