Hub24 Ltd (ASX: HUB) shares are storming out of the gates on Tuesday.
In morning trade, the ASX 200 tech stock is up over 10% to $72.16.
Why is this ASX 200 tech stock?
Investors have been buying the investment platform provider's shares following the release of its second quarter update.
According to the release, HUB24 delivered further strong growth in the quarter, with Platform funds under administration (FUA) increasing 8% over the quarter to $98.9 billion. This represents a 36% increase on the prior corresponding period.
This was driven by record quarterly net inflows of $5.5 billion (up 23% on the prior corresponding period) and positive market movements of $1.8 billion.
The ASX 200 tech stock notes that its net inflows included $1.5 billion of large migrations from EQT. Nevertheless, excluding large migrations, net inflows of $4 billion were achieved for the second quarter of FY 2025. This is up 47% on the prior corresponding period and broadly in line with the net inflows recorded in the first quarter.
Supporting its growth were 40 new distribution agreements that were signed during the quarter and the total number of advisers using the platform increasing by 166 to 4,886, up 14% on the prior corresponding period.
Another positive that could be giving the Hub24 share price a boost today is that industry data shows that the company ranked first for quarterly and annual net inflows and had the largest annual market share gains of all platform providers.
Hub24's market share increased to 7.9% (up from 6.6% as at 30 September 2023) and is ranked in seventh place overall.
Though, not all sides of Hub24 are booming. The release reveals that the Xplore Wealth Managed Discretionary Account (MDA) services offering will be coming to an end next year.
And while there is approximately $2 billion of FUA within Xplore Wealth MDA, management expects the closure to have an "immaterial" impact on its earnings.
Outlook
The ASX 200 tech stock remains positive on the future and has reaffirmed its FY 2026 FUA target. Management said:
The half year net inflows of $9.5 billion reflect HUB24's continued market leadership and focus on delivering customer service excellence. HUB24's proposition continues to resonate with licensees and advisers with the business uniquely positioned to capture opportunities from new and existing client relationships.
The strong net inflows and market movements in 1HFY25 are tracking ahead of our FY26 FUA target assumptions. With a strong pipeline and momentum across all customer segments, we remain confident in meeting our FY26 Platform FUA target of $115 – $123 billion and are well-positioned for future growth.
