Shares of Australian investment platform provider HUB24 Ltd experienced a significant rally on Thursday, climbing 14.2 percent to close at A$98.45. The surge followed the company's release of impressive half-year financial results and an upward revision to its medium-term growth objectives, capturing investor attention during the reporting season.
The broader S&P/ASX 200 index advanced 0.88 percent on the same day, but HUB24 stood out as one of the session's top performers. The market's focus has sharpened on operational metrics that distinguish genuine business growth from mere valuation increases driven by asset price inflation. For platform operators like HUB24, the critical measures are the volume of new funds advisers place on the platform and the efficiency with which that scale converts into profit.
Elevated Growth Ambitions
Central to the positive market reaction was HUB24's decision to raise its fiscal year 2027 target for platform funds-under-administration (FUA). The company now aims for a range of A$160 billion to A$170 billion, an increase from its previous goal of A$148 billion to A$162 billion. Managing Director Andrew Alcock characterized the first-half performance as "outstanding," citing record net inflows as a key driver behind the upgraded outlook.
The financial details underpinning the optimism were robust. For the half-year period, HUB24 reported a 26 percent increase in operating revenue, which reached A$245.9 million. Operating expenses grew by 20 percent to A$141.0 million, a rise attributed to heightened investment in technology and operational capabilities. This disciplined spending contributed to a 35 percent surge in underlying EBITDA, which hit A$104.9 million. Consequently, the underlying EBITDA margin expanded to 42.7 percent from 39.8 percent in the prior comparable period.
Record Fund Flows and Dividend Declaration
The platform business was the standout performer, attracting a record A$10.7 billion in net inflows over the six months. This strong flow lifted platform FUA to A$127.9 billion as of December 31, 2025. Total FUA across all business segments reached A$152.3 billion, which includes A$24.4 billion managed by its Portfolio Administration & Reporting Services (PARS) arm, which handles non-custody portfolios.
Reflecting its strong financial position and confidence, the board declared a fully franked interim dividend of 36 Australian cents per share. This dividend carries franking credits, indicating the company has already paid tax on the profits distributed. The shares will trade ex-dividend on March 16, with the record date set for March 17. Shareholders can expect payment on April 21, as per the company's dividend notice.
Growth Contingencies and Forward Calendar
Despite the bullish results and upgraded target, HUB24's management included important caveats. The company explicitly stated that its growth forecast is contingent upon "consistent and stable investment markets" and certain commercial terms that could influence platform FUA and revenue. A broad spectrum of operational risks was also acknowledged, including cyber, compliance, and conduct-related challenges.
Investors are now looking ahead to key upcoming dates for further signals. The stock's ex-dividend date in March will be closely watched, as will the company's third-quarter market update for fiscal 2026, scheduled for release on April 21. This update may provide clearer insight into fund flow trends following the half-year report. The full-year results for fiscal 2026 are slated for announcement on August 18.
The substantial share price movement underscores the market's reward for companies demonstrating tangible operational growth and clear future pathways. HUB24's combination of record inflows, improved profitability, and a raised long-term target successfully conveyed a narrative of scalable expansion, distinguishing it in a market increasingly focused on fundamental performance over broader macroeconomic trends.