Highlights

  • Q3 FY26 Revenue of A$398 million, up 11% excluding M&A and 6% on a reported basis, with EBITDA (excluding associates) of A$220 million, up 16% excluding M&A.
  • Record Australian audiences with 12.9 million monthly visitors on average, 150 million monthly visits (up 12%), and 2.6 million buyer enquiries (up 10%).
  • Residential Buy Yield growth of 14%, driven by a 7% Premiere+ price rise, add-on product growth, and higher subscription revenues, with national listing volumes returning to 1% growth.

 

REA Group Limited (ASX:REA) gained A$4.29, or 2.56%, to A$178.94 during morning trading on 8 May 2026. The move reflects a constructive market reaction to the company's strong Q3 FY26 result, which delivered record audiences, accelerating revenue growth, and upgraded cost guidance. Despite the positive session, the stock remains approximately 28.45% below its level of 12 months ago, a decline that reflects the impact of rising interest rates on property market sentiment and a broader re-rating of high-multiple digital platforms through much of the past year.

The morning gain is a reminder that REA's fundamental operating metrics have remained robust even as the share price has faced headwinds. For investors who have held through the de-rating, the Q3 result provides evidence that the platform's structural advantages, including dominant audience share and pricing power, remain firmly intact.

Q3 FY26 Financial Performance: Revenue and EBITDA Accelerating

REA Group reported Q3 FY26 revenue of A$398 million, up 6% on a reported basis and 11% excluding the impact of mergers and acquisitions adjustments (the iGUIDE Acquisition and PropTiger and Housing Edge disposals). Operating expenses of A$178 million increased just 1% reported (5% ex-M&A), demonstrating meaningful Operating Leverage. EBITDA excluding associates was A$220 million, up 11% reported and 16% ex-M&A.

For the nine months ended 31 March 2026, revenue was A$1,314 million (up 5% reported, 8% ex-M&A), with operating EBITDA of A$789 million (up 7% reported, 10% ex-M&A). Free Cash Flow for the nine months was A$437 million, up 12% on the prior year, reflecting both Earnings growth and effective Working Capital Management.

Australian Residential: Yield Drives Growth as Listings Return to Positive Territory

Australian revenue of A$381 million was up 12% year-on-year. Residential revenue was the primary driver, increasing 12% through a combination of yield improvement and Volume recovery. Buy revenue growth of 14% was underpinned by a 7% average Premiere+ price rise, growth in add-on products, higher subscription revenues, increased depth penetration, and a small positive impact from geographic mix. National Buy listing volumes returned to growth, up 1% in the quarter, with Sydney listings up 4% and Melbourne up 7%.

This listing volume recovery is significant. National listings had been negative year-on-year for the five preceding quarters, and the Q3 Reversal, driven particularly by the strength of Sydney and Melbourne, sets up a more constructive Supply environment heading into Q4 FY26 and beyond. April listing data, reported separately, showed national volumes up 19% year-on-year, with Melbourne up 20% and Sydney up 25%, though management cautioned that easier prior-year comparables are partially responsible for the magnitude of the gain.

Record Audiences: The Platform's Structural Moat on Display

One of the most compelling aspects of the Q3 result is the audience data. REA Group reported record Australian audiences with 12.9 million average monthly visitors in the quarter, 6.3 million of whom visited realestate.com.au exclusively (choosing REA over competitor Domain). Total monthly visits averaged 150 million, representing 103.8 million more monthly visits than the nearest competitor. Active member growth of 19%, seller lead growth of 28%, and buyer enquiry growth of 10% collectively reinforce the depth of engagement that REA's platform commands.

A new data point highlighted by management was particularly striking: REA attracts and engages the buyer for 9 in 10 properties that sell on the platform, based on PropTrack modelling of listings and sales from August 2023 to November 2025. This metric speaks directly to the value proposition for real estate agents and vendors, and underpins REA's ability to sustain premium pricing for listing products across the Market Cycle.

Cost Guidance Improved; Buyback Progresses

REA lowered its FY26 operating cost guidance. Group operating costs are now expected to increase in the low to mid single-digit range, an improvement on prior guidance, while Australian costs are expected to grow mid to high single-digits. Excluding Cost of Goods Sold, Australian operating expenses grew 6% in Q3, a moderation from recent trends.

On capital management, REA announced on 6 February an on-Market Share buyback of up to A$200 million. As at 8 May, 472,611 shares had been repurchased for a total consideration of A$75.5 million. The buyback reflects confidence in the long-term outlook and is expected to continue across the remainder of the financial year.

International Operations: Mixed Signals from India and North America

REA India's Housing.com core revenues declined 3% on a constant currency basis in Q3 FY26, with customer growth and improved monetisation in Tier 2 cities offset by competitive pricing pressure impacting yields. The strategic reset and simplified structure are ongoing, with India operating costs down 1% on a constant currency basis excluding M&A. In North America, Move revenues grew 10% to US$148 million, driven by the premium RealPRO Select shift and strength in seller, new homes, and rental segments. REA's 20% Equity stake in Move contributed a US$4 million loss, flat on the prior period.

iGUIDE, the Canadian 3D tour and floor plan technology Business acquired in October 2025, generated revenue of A$5 million in its first consolidated quarter and launched operations in Australia in March 2026 with several large photography networks signed up.

Conclusion

REA Group's Q3 FY26 result is a high-quality performance that reinforces the company's position as Australia's dominant digital property platform. Record audiences, accelerating yield growth, returning listing volumes, improved cost guidance, and a progressing buyback collectively signal a business firing across multiple cylinders. The approximately 28.45% share price decline over the past 12 months appears increasingly at odds with the operating momentum on display, and the 2.56% morning gain on 8 May may mark the early stages of a market reassessment. The key variables to watch in coming quarters remain the sustainability of Sydney and Melbourne listing recovery, the trajectory of Buy yield growth, and the ongoing contribution of financial services and data businesses to the overall revenue mix.