PEXA Group Limited (ASX:PXA) held its 2026 Annual General Meeting on 11 November 2026, with acting Chair Vivek Bhatia disclosing a statutory net loss of $15.9 million for FY26, alongside significant concerns over a draft IPART recommendation proposing a 20% reduction in the company's regulated revenue.

Key Points

  • PEXA Group reported a Net Profit After Tax of $19.2 million from continuing operations in FY26, offset by a $35.1 million loss from discontinued operations, resulting in a statutory net loss of $15.9 million.
  • IPART's draft report, issued on 3 July 2026, proposed a 20% reduction in PEXA's regulated revenue, which the Chair said led to a severe contraction in the company's share price.
  • IPART submitted its final report to the NSW Government on 30 October 2026 on a confidential basis, with publication expected within the coming week.
  • The Board withdrew resolution 8(b) relating to a proposed Share Price Recovery Incentive following shareholder feedback, with no replacement arrangement proposed at this stage.
  • Board appointments during FY26 included John Hooper as a Group board member and Janelle Hopkins, formerly CFO at REA, while Helen Silver resigned from the board.

FY26 Financial Results and Operational Performance

Acting Chair Vivek Bhatia, standing in for Board Chair Mark Joiner who was absent due to health issues, told shareholders the company delivered Net Profit After Tax of $19.2 million from continuing operations in FY26. However, a $35.1 million loss from discontinued operations produced a statutory net loss of $15.9 million for the year. The Chair noted that revenue, margins, and free cash flow all improved, reflecting in part a near $20 million realisation of cost savings through efficiency initiatives. Operational developments included the progressive exit of the Digital Solutions portfolio and a restructuring of the UK leadership team. NatWest was signed to process mortgage refinancing during the period.

IPART Pricing Review and Regulatory Concerns

The IPART draft report, delivered on 3 July 2026, proposed a 20% reduction in PEXA's regulated revenue by reducing critical aspects of its pricing. The Chair described the proposed reduction as unprecedented in magnitude and stated that the methodology IPART used was not appropriate for a digital business. The Chair further stated that IPART's modelling, if extended into future years, could turn PEXA's free cash flows negative in just seven years, putting its long-term solvency at risk. IPART's final report was submitted to the NSW Government on 30 October 2026 on a confidential basis, with publication expected within the coming week.

Board Governance Changes and CEO Incentive Withdrawal

FY26 brought several governance changes to the PEXA Group board. John Hooper, chairman of PEXA's UK businesses, joined the Group board, and Janelle Hopkins, formerly CFO at tech platform business REA, was appointed as a director. Helen Silver resigned from the board during the period. The Board also withdrew resolution 8(b), which had related to a proposed Share Price Recovery Incentive for the CEO, following shareholder feedback. The Chair confirmed no replacement arrangement is proposed at this stage, and the Board will continue to consider CEO retention and incentive alignment taking account of shareholder feedback and the regulatory outcome.