Key Highlights

  • GCI increased 21% to a record $151.6 million, compared with $125.3 million in FY25.
  • Revenue rose 10% to $108.7 million, while statutory EBITDA increased 29% to $4.86 million.
  • Statutory net loss narrowed 56% to $2.37 million from a $5.44 million loss in FY25.
  • Agent numbers reached a record 511 as the company entered FY27 with a larger listing pipeline but more difficult housing-market conditions.

The Agency Group Australia Limited (ASX: AU1) reported record gross commission income (GCI) for FY26, alongside higher Revenue and improved earnings, as the real estate agency expanded its national agent network. GCI increased 21% to $151.6 million for the year ended 30 June 2026, compared with $125.3 million a year earlier. Revenue also gained 10% to $108.7 million from $98.5 million.

The result came against a more difficult residential property environment late in the financial year. The company said market conditions softened materially during the second half, with affordability constraints, higher interest rates, cost-of-living pressures and uncertainty affecting buyer demand. The Agency's geographic Diversification and larger agent network nevertheless supported growth across the full year.

Earnings Growth and Cost Base

Gross profit increased 11% to $35.7 million, while gross Margin edged higher to 32.8% from 32.5%. Operating expenses rose 10% to $34.5 million, broadly tracking the increase in revenue as the company continued investing in its national network and growth platform.

Statutory EBITDA increased 29% to $4.86 million from $3.76 million. Underlying EBITDA before AASB 16 rose 59% to $1.79 million from $1.12 million. The company also reported a 56% improvement in statutory net loss after tax, which narrowed to $2.37 million from $5.44 million.

Depreciation and Amortisation declined to $4.73 million from $6.62 million, contributing to the improvement in the statutory result. Interest and finance costs were $1.94 million during FY26. Despite the improvement in earnings, the company remained loss-making on a statutory net profit after tax basis.

Residential Sales Scale Expands

The Agency increased its agent numbers by 16% to 511 at 30 June 2026, up from 442 a year earlier. Listings rose 5% to 7,971, while total listing value increased 9% to $10.84 billion.

Properties sold increased 3% to 6,849, with gross sales value rising 21% to $9.02 billion. The average sale price increased 18% to approximately $1.32 million, while revenue per agent increased 4% to approximately $62,400.

GCI growth was led by Queensland, Tasmania, New South Wales and Victoria. Western Australia remained the largest contributor to GCI, although transaction volumes moderated during the year. The company's listing pipeline also increased from 1,878 listings in July 2025 to 2,813 listings in July 2026. The Agency estimates these listings represent approximately $75 million of potential GCI, although the figure is not contracted revenue or Earnings guidance.

Property Management Provides Recurring Revenue

Property management revenue increased 7% to $14.48 million. Revenue from the company-owned management portfolio rose to $10.54 million from $9.76 million.

The combined owned and service portfolio reached 12,261 properties at 30 June 2026, up 2% year on year. The service portfolio increased by 313 properties, while the owned portfolio remained broadly stable.

The Vacancy Rate across the owned portfolio increased to 7.85% from 7.24%, indicating some deterioration in occupancy conditions. Even so, the property management division continued to contribute Recurring Revenue alongside the company's transaction-based residential sales operations.

Balance Sheet and Other Operations

Cash and cash equivalents declined to $4.24 million at 30 June 2026 from $5.07 million a year earlier. Net Assets also decreased to $0.08 million from $2.45 million, reflecting the statutory loss recorded during FY26.

The company said the reported Balance Sheet does not capture the full estimated Market Value of its internally generated property management assets. The independently assessed value of owned rent rolls was approximately $38.10 million, while $2.68 million was recognised on the balance sheet.

The settlements Business recorded 1,732 transactions, down from 1,757 in FY25. Revenue from the division declined 6% to $2.12 million, while average revenue per transaction fell to approximately $1,124 from $1,187.

FY27 Outlook

The Agency enters FY27 with a larger agent network, a higher listing pipeline and an expanded property management platform. However, its operating environment has become more challenging.

National housing data cited by the company showed weaker sales volumes, longer selling periods, increased advertised stock, greater vendor discounting and declining dwelling values during the three months to July 2026. These conditions may affect transaction activity and therefore GCI and earnings if they persist.

The second-half FY26 result also illustrates this sensitivity. Underlying EBITDA was $2.06 million in the first half but shifted to a loss of approximately $0.27 million in the second half, reflecting seasonality in agent remuneration, network Investment and weaker housing activity.

The company has not provided FY27 earnings or GCI guidance. Its stated priorities include improving agent productivity, selective recruitment, cost management, expanding recurring property management income and developing its Service Plus offering. Discussions regarding a potential scrip-for-scrip Merger with Aura Group remain incomplete, with no binding agreement in place.

Conclusion

The Agency Group's FY26 results show continued expansion in GCI, revenue, agent numbers and property management activity, while the statutory net loss narrowed materially from the previous year. However, cash and net assets declined, settlements revenue fell, and second-half underlying earnings moved into negative territory as housing conditions weakened. The key issue for FY27 is therefore whether the company's larger national platform and recurring revenue base can offset softer transaction conditions. With no earnings guidance provided, the company's financial performance will remain closely linked to property-market activity, agent productivity and the pace at which its expanded listing pipeline converts into completed transactions.