Key Highlights

• REA Group delivered Q1 FY27 Revenue of $450 million, an 11% year-over-year increase, or 8% excluding M&A contributions

• EBITDA excluding associates reached $294 million, up 12% year over year with Operating Margin expansion

• Controllable residential Buy Yield grew 14%, driven by Premiere+ price increases and add-on product uptake

• Free Cash Flow increased 24% year over year to $126 million in the quarter

REA Group Ltd (ASX:REA), the operator of Australia's leading residential and commercial property platforms including realestate.com.au, released its Q1 FY27 trading update on 5 November 2026. The results covered the three months ended 30 September 2026 and were reported as part of the News Corporation Earnings cycle. The update showed continued revenue growth driven by yield expansion, despite softer listing volumes in key markets.

Residential Revenue and Yield Dynamics

Australian revenue reached $441 million in Q1 FY27, up 9% year over year, or 8% excluding M&A activity from the iGUIDE and Simplicity acquisitions. Residential revenue increased 10%, driven by an 8% total Buy yield increase, which included 14% controllable yield growth. The controllable yield benefited from an 8% average Premiere+ price rise, growth in add-on products, and increased depth penetration across the agent customer base.

National Buy listing volumes declined 2% during the quarter, with Melbourne and Sydney down 16% while Brisbane, Perth, and Adelaide rose 17%. A positive deferral impact of 3% partially offset the listing Volume headwinds. REA Group noted that October listings were 13% lower on the prior corresponding period, or 8% lower adjusting for one fewer working day, suggesting continued market softness heading into the second quarter.

Record Audience Engagement

The platform recorded what the company described as record engagement metrics during Q1 FY27. Active members grew 9% year over year, while the number of properties tracked by their owners on realestate.com.au reached 5.3 million, representing a 13% increase. The platform attracted 11.5 million people per month on average, with 5.6 million visitors using realestate.com.au exclusively. Monthly visits averaged 137.4 million, which the company noted was 97.5 million more than the nearest competitor.

However, buyer enquiry volumes declined 33% year over year to 1.9 million average monthly enquiries, and seller leads fell 9%, reflecting the more challenging Demand environment driven by tax changes and higher borrowing costs. REA completed the divestment of REA India on 29 September, resulting in a small net gain on disposal, with REA India now holding a 24.9% undiluted stake in Aurum Proptech Limited.

Financial Metrics and Cost Management

EBITDA excluding associates reached $294 million, up 12% year over year and also up 12% on an organic basis excluding M&A. Operating expenses grew 9% to $155 million, or just 2% excluding M&A, with Australian costs up only 3%. Free cash flow increased 24% to $126 million. Combined losses from equity-accounted investments improved from $7 million to $5 million, driven by improving Move performance.

REA Group CEO Cameron McIntyre noted the company is focused on improving productivity and enhancing capability to execute on its product pipeline, with disciplined cost management underpinning the Business through varying market conditions.

What Lies Ahead

REA Group's FY27 outlook remains unchanged, with national Buy listings anticipated to be down low single-digits. The company continues to target operational margin expansion, low double-digit controllable residential Buy yield growth, and mid single-digit operating cost growth excluding M&A. The 14% controllable yield growth in Q1 demonstrates the platform's pricing power, while the listing volume decline and falling buyer enquiries reflect broader housing market dynamics that sit outside the company's control. The tension between these two forces will likely define the FY27 narrative for REA Group.