Key Highlights

  • Revenue rose 7% to A$406.9 million for the year to 30 June 2026.
  • EBITDA rose 12% to A$151.7 million, at a Margin of 37.3%.
  • NPATA rose 35% to A$65.3 million, and statutory NPAT from continuing operations was A$19.2 million.
  • FY27 guidance points to lower margins and profit, as a regulatory pricing review and UK losses weigh.

Why does PEXA's FY26 result, which showed higher revenue, EBITDA and cash flow, come with guidance for lower margins and profit in FY27? The company's results announcement of 28 August 2026 points to three pressures: a regulatory review that proposes cutting its regulated Australian revenue, softer property-transaction volumes, and continuing losses in its UK business. The company (ASX:PXA) operates in this market.

The central development: encouraging FY26, cautious FY27

PEXA operates Australia's electronic property settlement exchange, used for transfers and Mortgage settlements by conveyancers, lenders and Revenue offices. It also operates a smaller international Business in the United Kingdom, focused on remortgage and, increasingly, sale and purchase workflows.

For FY26 revenue was A$406.9 million, up 7% from A$379.5 million. EBITDA rose 12% to A$151.7 million, a margin of 37.3% (up 1.7 percentage points). NPATA, a non-IFRS measure of profit before certain amortisation, rose 35% to A$65.3 million. Statutory net profit after tax from continuing operations was A$19.2 million against a loss of A$65.6 million in FY25. Including a A$35.1 million loss from discontinued operations (Digital Solutions), the statutory net loss was A$15.9 million, narrowing from A$76.1 million. Free Cash Flow was A$93.5 million, up 39%, Capital Expenditure was A$51.6 million and net Debt was A$158.7 million, a Leverage Ratio of 1.0 times compared with 1.8 times a year earlier.

Business drivers: Australia pays the bills

segment generated revenue of A$345.6 million (up 8%) and EBITDA of A$192.8 million (up 12%), a 55.8% margin. It processed 4.7 million market transactions, up 6.4%, with average revenue per transaction of A$80.6, up 2.2%. That pattern, rising volumes plus modest price increases, is the engine of the group.

Revenue per transaction is where regulation bites. Volume depends on housing turnover, which responds to interest rates, affordability and tax settings, while pricing is increasingly scrutinised because PEXA holds a dominant position.

The UK business

International revenue was A$61.3 million, up 1%, with gross margin up 15% to A$36.9 million. Operational indicators were mixed: Optima remortgage volumes rose 26% and Smoove volumes rose 11%, but the company reported that its penetration of the UK remortgage market fell by 1.2 percentage points. It targets the launch of a NatWest sale-and-purchase product in late in the third quarter of FY27.

The UK business is the swing Factor for group profitability, since its A$41.1 million EBITDA loss equals about a fifth of Australian segment EBITDA.

FY27 guidance

These are management's expectations, subject to the conditions it lists. The release gives a group NPAT outcome for FY26 of A$26.3 million in its guidance table, which does not reconcile with the A$19.2 million statutory continuing figure or the A$65.3 million NPATA reported elsewhere in the release, so comparisons should be treated cautiously; the company did not explain the difference in the text reviewed.

The guided margin midpoint of 32.5% is about five percentage points below FY26, a larger change than the revenue range implies, which points to higher costs and possibly pricing or regulatory effects.

Regulatory risk: the IPART review

The most material external issue is the review by the Independent Pricing and Regulatory Tribunal (IPART). The company states that the Draft Report proposes a 20% cut to PEXA's regulated revenue from FY28, with CPI-based increases thereafter, and that a Final Report was expected by 30 September 2026. A reduction of this kind would flow through to margins because incremental revenue in a platform business carries high margins.

Macro conditions and taxation

The release says the macroeconomic environment is expected to dampen property transaction volumes and notes that transfer volumes softened in July 2026. Guidance is also subject to recent changes in the taxation of property and evolving regulatory settings. Because PEXA earns per transaction, a fall in settlements has a direct revenue effect even when Market Share is stable.

Competitive position

Competition is limited in Australia, which is exactly why regulators examine its pricing. Overseas, it faces established UK processes and competitors in remortgage and conveyancing technology.

The release reviewed did not disclose a dividend.

Risks and developments to monitor

The final IPART outcome and its timing, and any response from the company or government.

Property transaction volumes, interest rates and tax changes.

UK adoption, the NatWest sale-and-purchase launch and the pace of cash outflows.

Delivery of the FY27 margin guidance.

Net debt and leverage, currently 1.0 times.

Progress following the exit of Digital Solutions.

The first-half FY27 result.