Key Highlights

  • OFX Group (ASX:OFX) traded at $0.385, down 24.51%, after touching a 52-week low during the 26 October 2026 session.
  • The Transaction Process Deed with Equals terminated after a scheduled re-confirmation on 23 October did not occur, ending exclusivity.
  • 2Q27 net Operating Income was $45.3 million, up 3.1% on 1Q27 and down 9.6% on the prior corresponding period.

OFX Group Limited (ASX:OFX) shares touched a 52-week low during the Trading session on 26 October 2026, trading at $0.385, down 24.51% on the day. OFX is a Sydney-headquartered money transfer and financial operations company serving clients in more than 50 currencies across 180-plus countries. On the same day it released a strategic review update and a trading update for the second quarter of FY27 (2Q27).

Strategic Review Update

OFX referred to the Transaction Process Deed announced on 23 July 2026 and amended on 24 September 2026, covering a proposed all-cash Acquisition of 100% of its shares by Alakazam Holdings Bidco Limited, the direct owner of UK-based Equals Group Limited, by way of a scheme of arrangement at a scheme consideration of $1.00 per share. Under the deed, Equals was scheduled to re-confirm on 23 October 2026 that it did not intend to withdraw or amend the indicative proposal or reduce the consideration, but it did not do so.

As a result, the deed terminated and exclusivity ended. Discussions between OFX and Equals are continuing on a non-exclusive basis. OFX said shareholders need not take any action and that there is no certainty a transaction will proceed.

2Q27 Trading Update

Net operating income (NOI) was $45.3 million, up 3.1% on 1Q27 and down 9.6% on the prior corresponding period, which the company attributed to low Business confidence persisting across most of its markets. Corporate Revenue was $28.4 million, up 6.9% on 1Q27, helped by cross-currency margins of 0.6%, up 3 basis points, and a 1.4% rise in transaction volumes. High Value Consumer revenue rose 2.8% to $13.3 million, while Enterprise revenue fell 31.3% to $2.8 million. Corporate active clients fell 5.0% on 1Q27, or 0.9% excluding the run-off of Firma and OLS clients.

Non-FX revenue reached $1.0 million, up 31.0% on 1Q27 and 178.9% on the prior corresponding period. Client wallet balances were $294.6 million at the end of September, up from $203.3 million, and interest income on group cash and wallet balances was $3.1 million, up 27.2%.

Corporate average revenue per client was $4.0 thousand, up 2.7% on 1Q27, and transactions per corporate active client rose 2.0%. Average transaction values were steady from the previous quarter. Card revenue was up 31.5%, Pay by Card revenue up 27.9% and subscription revenue up 33.5% against 1Q27.

Costs and Cash Position

Underlying operating expenses for 1H27 are expected to be $85 million to $87 million, including Bad Debts Expense of $3.8 million, of which about $1.6 million relates to adjustments not expected to recur and $1.1 million to consumer losses. OFX said none of the losses relate to the cyber incident. About $15 million of annualised cost reductions were executed at the end of the quarter. Net cash held was $63.3 million, and net available cash after Collateral and bank guarantees was $36.6 million, down 25.7% on 1Q27 and 22.2% on 2Q26. The 2Q27 figures are unaudited and subject to external audit review.

About OFX

OFX provides global business accounts, money transfers, payments, corporate cards with spend management and currency risk management. It has about 700 employees, offices across the United States, Canada, the United Kingdom, Ireland, New Zealand, Singapore and Hong Kong, has been ASX listed since 2013, is ISO/IEC 27001:2022 certified and is licensed in about 50 jurisdictions.

The company is licensed in about 50 jurisdictions and provides services that combine foreign exchange, payments and spend management. Its NCP platform is the product base on which multi-product adoption is measured; about 11.7% of active clients on that platform use more than one product, up 1.6% on 1Q27.

Risks

The release states that there is no certainty a transaction will proceed. Net operating income is lower than a year earlier, Enterprise revenue and active client numbers declined in the quarter, and net available cash was lower on both comparison periods. The company also disclosed bad debts and consumer losses within its cost outlook, and its figures remain subject to audit review.

Catalysts on Investors' Radar

The outcome of the non-exclusive discussions with Equals is the item the company has identified, and any change in terms or status would be announced. The 1H27 result, which will include audit-reviewed figures for the period, is the next scheduled financial disclosure implied by the trading update, along with progress on the cost reductions and the New Customer Platform.

Final Perspective

OFX touched a 52-week low on the day it confirmed that exclusivity with Equals had ended while talks continue, alongside a trading update showing quarter-on-quarter gains in several lines and declines against the prior year.