REA Group Limited (ASX:REA) operates digital property platforms led by realestate.com.au, generating Revenue from residential listings, commercial property, developer advertising, financial services and related products. FY26 delivered higher revenue and core Earnings even though national Residential Buy listings were flat. Increased Yield per listing, product adoption and Australian audience growth were the main contributors.

Core Revenue Rises 7%

Core revenue increased 7% to A$1.7926 billion in FY26.

Core EBITDA before associates rose 12% to A$1.0877 billion, while core NPAT attributable to owners increased 15% to A$650.5 million.

Core EPS reached 493.5 cents, also up 15%.

Operating expenses across core operations were broadly unchanged at approximately A$704.9 million.

Australian Residential Revenue Increases 12%

Residential revenue increased 12% to A$1.290 billion.

National Buy listings were flat compared with FY25, so the revenue increase was driven primarily by higher revenue per listing rather than increased listing volumes.

Buy yield increased 13% during the year.

The result shows that product mix and pricing were more important to FY26 residential revenue growth than transaction volumes.

Premiere+ Pricing Supports Yield

Average Premiere+ pricing increased 7% during FY26.

Buy yield also benefited from greater use of add-ons, subscription revenue and increased depth penetration.

Geographic mix had a neutral impact over the full year, meaning the reported 13% Buy yield increase broadly matched controllable yield growth.

Yield remains an important metric because listing volumes can fluctuate with housing-market conditions.

Audience Reaches 12.7 Million Monthly Visitors

realestate.com.au recorded an average of 12.7 million monthly visitors during FY26.

REA uses audience reach and engagement to support the value proposition offered to vendors, agents and advertisers.

The company also expanded AI-supported search and property experiences during 2026, although no separate revenue contribution from those products has been disclosed.

Statutory Profit Falls Despite Core Growth

Reported NPAT attributable to owners was A$551.6 million, down from A$677.9 million in FY25.

The difference from core profit largely reflects non-core items.

FY26 included an Impairment of approximately A$111 million associated with REA India, while the prior year included an impairment Reversal linked to PropertyGuru.

Core profit therefore provides a different comparison from statutory earnings.

India Is Classified as Discontinued

REA agreed to sell Housing.com to Aurum PropTech through an all-equity transaction.

Following completion, REA India is expected to hold a 24.9% interest in Aurum.

India was classified as a discontinued operation at 30 June 2026.

FY26 India revenue was approximately A$62 million, while the Business reduced group EBITDA by around A$36 million.

Continuing Operations Provide a Cleaner Base

Excluding India, continuing-operations revenue was A$1.7304 billion, up 12%.

Core EBITDA before associates from continuing operations reached A$1.1213 billion, while core NPAT was A$682.1 million.

These figures provide a more relevant base for FY27 comparisons because India is being removed from consolidated continuing operations.

Dividend Rises to 297 Cents

REA declared a fully franked final Dividend of A$1.73 per share.

This was 25% higher than the prior-year final dividend.

Total FY26 dividends reached A$2.97 per share, up 20% from FY25.

The increase reflected higher core earnings and cash generation.

FY27 Listings Guidance Remains Cautious

REA expects national Residential Buy listings to be flat to down low single digits in FY27.

July listings were 2% below the prior corresponding period.

Sydney and Melbourne combined were down 16%, while Brisbane, Perth and Adelaide combined increased 13%.

The geographic mix can affect reported yield because listing values differ across markets.

Buy Yield Is Again Expected to Drive Revenue

REA expects controllable Residential Buy yield growth in the low double digits during FY27.

The outlook incorporates an average 8% increase in Premiere+ pricing together with additional product and add-on adoption.

Reported yield may differ from controllable yield because geographic mix can move as listing activity changes between higher- and lower-value markets.

Cost Growth Is Expected in FY27

Operating costs excluding acquisitions are expected to increase by mid-single digits across both Australia and the group on a continuing-business basis.

Including acquisitions, group operating costs are expected to rise by mid- to high single digits.

Management continues to target Operating Margin expansion, making the relationship between yield growth and cost growth an important FY27 measure.

International Portfolio Continues to Change

REA has continued reshaping its international portfolio.

In addition to the planned Housing.com transaction, the company announced in September 2026 that it intends to acquire a 35% interest in Distilled, the owner of Irish property platform Daft.ie.

The Investment expands REA’s international exposure but also introduces additional earnings and execution considerations.

Key Risks and Areas to Watch

The main operational risk is lower listing activity, particularly if declines continue in Sydney and Melbourne.

Higher listing prices may also face resistance if agents or vendors reduce spending on premium products.

Housing activity remains sensitive to borrowing costs, affordability and transaction volumes.

FY27 Buy yield, national listings, operating-cost growth and completion of international portfolio transactions will therefore remain important indicators.