Key Highlights

  • PEXA reduced FY27 Revenue guidance to AUD 355–380 million from AUD 385–415 million, reflecting weaker Australian property transaction volumes.
  • Australian Exchange transactions declined 11.5% YoY to 934,000 during Q1 FY27, with property transfers falling 15.2% to 566,000.
  • The company reported FY26 revenue of AUD 406.9 million, increasing 7% YoY, while operating EBITDA rose 12% to AUD 151.7 million.
  • The pending final outcome of the electronic conveyancing pricing review introduces regulatory uncertainty, while the company's international Business continues to require investment.

PEXA Group Limited (ASX:PXA) operates an Australian digital property settlement and electronic conveyancing platform used by banks, lawyers, conveyancers and property market participants. Its technology supports property settlements, land title lodgments and refinancing transactions. The company also provides property-related technology and services in international markets, particularly the United Kingdom. Following improved revenue and operating Earnings in FY26, PEXA experienced declining Australian transaction volumes during Q1 FY27. The slowdown prompted revised earnings expectations, while the ongoing review of regulated electronic conveyancing fees remains an important consideration for future profitability.

FY26 Financial Results and Operating Performance

For the financial year ended 30 June 2026, PEXA reported group revenue of AUD 406.9 million, representing growth of approximately 7% compared with FY25.

Operating EBITDA increased 12% to AUD 151.7 million, delivering an EBITDA Margin of 37.3%.

Core net profit after tax and Amortisation increased 35% to AUD 65.3 million, supported by revenue growth and operating efficiency.

Free Cash Flow rose 39% to AUD 93.5 million, reflecting improved cash generation from continuing operations.

Statutory net profit after tax from continuing operations reached AUD 19.2 million, compared with a loss of AUD 65.6 million in FY25.

However, the company reported a total statutory loss of AUD 15.9 million after recognising AUD 35.1 million in losses associated with discontinued operations.

The Australian business generated revenue of AUD 345.6 million and EBITDA of AUD 192.8 million.

International operations contributed AUD 61.3 million in revenue but recorded an EBITDA loss of AUD 41.1 million.

These figures highlight the difference between the established Australian platform and the company's developing international operations.

September Quarter Transactions and Property Market Conditions

PEXA's Q1 FY27 trading update demonstrated weaker activity across the Australian property settlement market.

For the three months ended 30 September 2026, total Exchange transactions declined 11.5% YoY to 934,000.

Property transfers decreased 15.2% to approximately 566,000 transactions, reflecting reduced residential property activity.

Refinancing transactions fell 6.4% to 233,000, while other transactions declined 3.2% to 135,000.

The slowdown continued into October 2026, when property transfer volumes decreased approximately 26% compared with October 2025.

Refinancing activity remained comparatively stable.

Because PEXA generates revenue through transaction-based service fees, lower settlement volumes directly affect its principal revenue stream.

Higher borrowing costs, changing property prices and weaker buyer confidence remain relevant influences on housing market activity.

Revised FY27 Revenue and Profit Guidance

In November 2026, PEXA revised its FY27 financial expectations following weaker-than-anticipated Australian transaction activity.

The company lowered group revenue guidance to AUD 355–380 million from the previous range of AUD 385–415 million.

Expected group EBITDA margin was reduced to 29–31.5%, compared with the earlier guidance of 31.5–33.5%.

The revision also affected profitability expectations.

Core net profit after tax from continuing operations is now expected to range between a loss of AUD 6 million and a profit of AUD 6 million.

The previous guidance anticipated a profit of AUD 5–20 million.

Capital expenditure guidance was reduced to AUD 45–50 million, reflecting greater emphasis on expenditure control.

Expected international operating cash outflow remained unchanged at AUD 55–65 million.

These forecasts remain dependent on property transaction volumes, operating costs and international business performance.

Electronic Conveyancing Pricing Review

Regulatory developments represent another important consideration for PEXA's Australian operations.

In July 2026, the NSW Independent Pricing and Regulatory Tribunal released draft recommendations concerning fees charged by electronic lodgment network operators.

The review proposed continued regulation of transaction-related service fees, including reductions to transfer transaction fees from FY28.

Under the draft framework, subsequent annual adjustments would generally be linked to Inflation during the proposed regulatory period ending in June 2031.

PEXA has challenged elements of the proposed methodology and assumptions.

The regulator completed its review and submitted its final report to the NSW Government on 30 October 2026.

As at 11 November 2026, the public release and subsequent regulatory decisions remained important outstanding developments.

Any changes to permitted transaction fees could affect Australian revenue and profitability, depending on the final regulatory arrangements and implementation timetable.

International Expansion and Balance Sheet Position

PEXA continues developing electronic conveyancing and property transaction technology in the United Kingdom.

Its international strategy includes digital remortgage processing, conveyancing services and technology integration with financial institutions.

However, the UK business remains loss-making as the company invests in operational capabilities and customer adoption.

Progress in international markets will depend on transaction volumes, lender participation and implementation schedules.

At 30 June 2026, PEXA reported net Debt of AUD 158.7 million, with Leverage declining to approximately 1.0 times EBITDA from 1.8 times.

This reduction improved financial flexibility, although continued international expenditure and weaker domestic revenue may affect future cash generation.

The company's priorities include protecting Australian operating margins, managing costs and progressing selected international initiatives.

Key Insights

PEXA Group Limited (ASX:PXA) delivered higher revenue, operating EBITDA and free cash flow in FY26, supported by its established Australian electronic conveyancing platform. However, declining property settlement activity during Q1 FY27 prompted substantial reductions to revenue and profitability guidance. The pending regulatory pricing outcome introduces further uncertainty for the Australian business, while international expansion continues to require investment. Transaction Volume trends, cost discipline and the final regulatory framework will remain central to PEXA's FY27 financial performance.