Highlights

  • FY26 core EBITDA excluding associates was AUD 1.088 billion, up 12%.
  • Core net profit after tax increased 15% to AUD 650.5 million.
  • Australian residential Buy Yield rose 13% during FY26.
  • Management expects national new Buy listings to be flat to down low single digits in FY27.

REA Group Limited (ASX:REA) operates digital property Advertising platforms that connect home buyers, sellers and real estate professionals. Its FY26 results show that advertising yield and product mix can influence Revenue even when the number of properties listed changes little. The company's FY27 outlook combines planned price increases with an expectation of subdued new listing volumes, making customer Demand and the effectiveness of premium products important operating variables.

FY26 revenue and earnings

REA Group Limited (ASX:REA) reported FY26 core revenue of approximately AUD 1.793 billion on the disclosed group basis, with core EBITDA excluding associates of AUD 1.088 billion, up 12%, and core net profit after tax of AUD 650.5 million, up 15%. Core Earnings per share were AUD 4.93. Different published revenue figures relate to continuing operations and treatment of the India business, so they should not be treated as interchangeable. In Australia, reported revenue reached approximately AUD 1.712 billion and residential revenue was AUD 1.290 billion. Australian operating expenses were approximately AUD 586 million. The relationship between revenue and expense growth is relevant to the reported margin, but accounting classifications and discontinued operations also affect comparability.

Advertising yield and listing volumes

REA Group Limited (ASX:REA) earns a substantial share of Australian revenue from property advertisements purchased through agents and vendors. Customers can select premium listing formats and related products. During FY26, average Premiere+ prices increased 7%, while residential Buy yield rose 13%. New listing volumes were broadly flat for the year, compared with earlier expectations of a modest decline. Higher yield therefore contributed to revenue performance without requiring a comparable increase in the number of properties advertised. That pattern depends on customers continuing to accept product prices and on the perceived value of premium placement. Housing market activity, agent budgets and competing advertising channels remain external constraints.

Audience activity and overseas restructuring

REA Group Limited (ASX:REA) reported an average of 12.7 million monthly visitors and 146.4 million monthly visits, with the latter up 11%. Seller leads increased 22%, while buyer enquiries averaged approximately 2.5 million per month, up 8%. These engagement indicators help explain why advertising customers may pay for exposure, although visits and enquiries are not themselves revenue. In July 2026, the group announced an agreement to dispose of its Housing.com interest while retaining a minority holding following completion. The planned transaction affects the presentation of Indian operations as discontinued, and the ultimate accounting outcome depends on completion and the final transaction structure.

FY27 expectations and pricing risks

REA Group Limited (ASX:REA) expects new national Buy listings to be flat to down low single digits in FY27. Management guided to low-double-digit residential Buy yield growth excluding geographic mix, supported by an 8% increase in Premiere+ prices and additional products. It expects operating cost growth in the mid-single digits excluding acquisitions, with a higher range including them. These targets describe management expectations rather than achieved FY27 results. Lower listings, weaker housing sentiment, resistance to price rises and changes in online search behaviour could affect performance. The main financial test will be whether yield growth offsets any Volume weakness while maintaining the relationship between revenue and operating costs.

Key Insights

REA Group Limited (ASX:REA) reported higher FY26 core earnings alongside broadly flat listing volumes. FY27 performance will depend on premium advertising demand, the proposed pricing increase and property-market activity. Comparisons of reported revenue require care because the India Business is being treated separately from continuing operations.