Highlights

  • PEXA is responding to a proposed regulatory fee review affecting its Australian exchange business.
  • The company continues to maintain a leading position in Australia's electronic property settlement market.
  • FY2026 guidance was reaffirmed prior to the proposed regulatory changes.
  • Investors remain focused on the final regulatory determination and progress of the company's UK expansion.

PEXA Group (ASX:PXA) remains in focus as investors assess the potential impact of proposed regulatory changes alongside the company's continued investment in international growth. While its Australian exchange business remains highly profitable, future earnings will be influenced by the outcome of the ongoing pricing review and execution of its long-term expansion strategy.

Why this story matters

PEXA operates the digital infrastructure supporting the majority of Australia's electronic property settlements, making it an important participant in the country's property market. The proposed review of regulated exchange fees has prompted investors to reassess the company's long-term earnings outlook, highlighting the influence of regulatory decisions on businesses operating essential market infrastructure.

About PEXA and its ASX operations

PEXA Group (ASX: PXA) operates Australia's leading Electronic Lodgement Network Operator (ELNO), enabling digital property settlements, refinancing transactions and lodgements for financial institutions, legal firms and conveyancers.

The company reports that its platform facilitates the majority of Australian property transfers and has established a profitable domestic exchange business. Alongside its Australian operations, PEXA continues expanding into the United Kingdom through its Optima Legal and Smoove businesses, with a focus on digital remortgage services.

The latest development

During July 2026, the New South Wales Independent Pricing and Regulatory Tribunal (IPART) released a draft determination proposing changes to the regulated revenue that PEXA may earn from its exchange services.

The proposal includes lower regulated transaction fees, with implementation proposed from no earlier than 1 July 2027, subject to completion of the consultation process and publication of the final determination.

PEXA has participated in the consultation process while advocating for a longer implementation period. At this stage, the proposal remains a draft and has not been finalised.

Financial and operational figures

For FY2025, PEXA reported:

  • Revenue of A$393.6 million, up 16%.
  • EBITDA of A$134.4 million, up 21%.
  • EBITDA margin of 34.1%.
  • Core NPAT of A$41.1 million.
  • Statutory net loss of A$76.1 million, reflecting impairment charges and continued international investment.
  • Net debt of A$245 million, with leverage improving to approximately 1.8 times.

During its third-quarter FY2026 update, the company reported approximately 935,000 exchange transactions, representing growth of 7.3%.

Prior to the release of the draft regulatory proposal, PEXA reaffirmed FY2026 guidance toward the upper end of previously announced ranges:

  • Revenue: A$395 million to A$415 million.
  • EBITDA margin: 34% to 37%.
  • Core NPAT: A$15 million to A$25 million.

Potential opportunities

PEXA continues to benefit from its established Australian exchange platform, which remains highly profitable and generates recurring transaction-based revenue.

The company also continues expanding internationally, with progress in the United Kingdom through lender partnerships and broader digital property settlement initiatives. Continued adoption of its UK platform could provide an additional long-term growth driver while reducing reliance on the Australian market.

Material risks and uncertainties

The proposed IPART fee review represents the company's most significant near-term uncertainty, as any final determination could affect future earnings from its Australian exchange business.

PEXA also continues investing in its UK operations, which remain in the growth phase and have yet to achieve sustained profitability. Broader property market activity, refinancing volumes and housing market conditions will also continue influencing transaction volumes across its platform.

In addition, future regulatory developments remain an important consideration given PEXA's leading position within Australia's electronic property settlement market.

What investors should watch next

Investors will closely monitor IPART's final determination and the implementation timetable for any approved pricing changes.

Attention will also focus on the company's FY2026 full-year results, updated guidance, capital allocation decisions and continued progress across its UK operations, including growth in lender participation and transaction volumes.

Conclusion

PEXA continues to operate one of Australia's most significant digital property settlement platforms while pursuing longer-term international expansion opportunities.

Although the proposed regulatory changes have introduced greater uncertainty around future earnings, the company's established Australian business, recurring transaction model and ongoing UK development initiatives remain central to its long-term strategy. The final regulatory outcome and upcoming FY2026 results are expected to provide greater clarity regarding the company's future growth trajectory.