Highlights

  • REA shares fell 10.20% to AUD 163.79, extending the 12-month decline to 35.74%.
  • National residential Buy listings declined 6% in H1 FY26, with further declines expected.
  • Reported net profit fell 24% due to the absence of prior asset sale gains.

REA Group Ltd (ASX:REA) shares dropped sharply on Thursday after the company released its half-year financial results for the period ended 31 December 2025. The stock fell 10.20% to AUD 163.79, extending its 12-month decline to 35.74%, as investors reacted to softer residential listing volumes and revised market expectations despite increases across several earnings metrics.

Share Price Decline Tracks Broader Market Weakness

REA Group’s intraday fall came alongside a broader market pullback, with the S&P/ASX 200 down 1.81% to 8,727.80. However, REA’s decline outpaced the benchmark, reflecting heightened sensitivity to property market conditions.

The stock has now lost more than one-third of its value over the past year, placing renewed attention on volume trends in Australia’s residential property market.

Half-Year Results Show Earnings Growth

For the first half of FY26, REA reported revenue from core operations of AUD 916 million, an increase of 5% year-on-year. Operating expenses rose 3% to AUD 347 million, while EBITDA (excluding associates) increased 6% to AUD 569 million.

Net profit from core operations rose 9% to AUD 341 million, with earnings per share also up 9% to AUD 2.58. Reported net profit declined 24% to AUD 336 million, largely due to the absence of a prior-period gain from the sale of its PropertyGuru investment.

An interim dividend of AUD 1.24 per share, fully franked, was declared, representing a 13% increase compared with the prior period.

Listings Decline and Outlook in Focus

National residential Buy listings declined 6% during the half, reflecting uneven market conditions across regions. While Melbourne and Sydney recorded improved supply, other cities such as Perth and Brisbane continued to experience limited stock, contributing to lower listing activity.

REA now expects national Buy listing volumes to decline between 1% and 3% for FY26, with January listings down 8% year-on-year. Perth and Brisbane were identified as key contributors to the larger-than-anticipated decline.

The company maintained its expectation of 12% to 14% residential Buy yield growth, although outcomes may vary depending on geographic mix.

Capital Management and Strategic Updates

REA announced an on-market share buy-back of up to AUD 200 million, subject to market conditions. The company also outlined progress in its AI initiatives, including expanded natural language search features and a forthcoming conversational search beta in partnership with OpenAI.

In India, REA completed a business reset involving a simplified structure and new management team, while maintaining guidance for EBITDA losses of AUD 40–45 million for FY26.

REA Group’s half-year results delivered revenue and earnings increases, but the market response centred on listing volume trends and near-term outlook. With the share price now significantly lower than a year ago, investor focus remains on residential supply conditions and regional market shifts across the remainder of FY26.

FAQs

Why did REA Group’s share price fall today?
The decline followed the release of half-year results and guidance indicating continued pressure on residential listing volumes.

How much has REA Group’s share price fallen over the past year?
The stock is down 35.74% over the last 12 months.

Did REA Group announce any capital management initiatives?
Yes, the company announced an on-market share buy-back of up to AUD 200 million, subject to market conditions.