Hub24 shares decline amid slowing net inflows

Hub24 Ltd (ASX: HUB) has experienced a significant decline in its share price, falling approximately 35% over the past 12 months and roughly 27.5% since the start of 2025. The sell-off is largely attributed to investor concerns regarding slowing net inflows, which fell 4% year-on-year to $18.9 billion in FY26.

Despite the share price volatility, the company's operational metrics remain strong. For FY2026, Hub24 reported a 30% increase in underlying EBITDA to $211.4 million, a 40% rise in underlying NPAT to $137.3 million, and total revenue growth of 23% to $501.1 million. The company continues to expand its user base, with more than 5,200 financial advisers utilizing its platforms.

Valuation analysis indicates that Hub24 is currently trading at a price-to-sales ratio of 17.31x, which is higher than its five-year average of 13.32x. This higher multiple, combined with a broader market reassessment of tech valuations, has contributed to the recent downward pressure on the stock.