REA Group (ASX:REA) Shares Decline Over the Year

REA Group (ASX:REA) Shares Decline Over the Year - What Investors Need to Know

Sonal Goyal

07 October 2026 01:08 AM AEDT

REA Group (ASX:REA) Shares Decline Over the Year - What Investors Need to Know

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REA Group Ltd (ASX:REA), the operator of Australia’s realestate.com.au property portal, has recorded a significant share price decline over the past year despite higher core earnings. REA Group Ltd (ASX:REA) shares were priced at $155.00, up 0.67% in today’s session, and are down 32.24% over the past year. The company announced its results for the year ended 30 June 2026 (FY26) on 6 August 2026.

Business Model and Operational Footprint

REA earns Revenue mainly from property agents and developers who pay to list properties on its websites, with additional revenue from financial services through Mortgage Choice, data and media products. Residential revenue, driven by Yield per Buy listing, makes up the largest part. In FY26 its Australian audience averaged 12.7 million people per month, with 146.4 million monthly visits, up 11%, and 2.5 million buyer enquiries, up 8%.

The company acquired a 70% controlling stake in Simplicity Loans & Advisory to diversify Mortgage Choice into commercial lending, and consolidated Planitar, the North American maker of iGUIDE 3D visualisation, from October 2025. In July 2026 REA India announced the sale of its remaining business, Housing.com, to Aurum PropTech Limited, after earlier shutting down Housing Edge and selling PropTiger. REA India will hold a 24.9% stake in Aurum after completion and is now presented as a discontinued operation.

Sector Dynamics

Property portal Earnings depend on listing volumes, price increases for listing products, agent adoption of premium products and the health of the housing market. REA states that the Australian property market became more favourable for buyers in the last quarter of FY26 as national house price growth started to moderate, and cites proposed federal taxation changes, global events and Interest Rate increases as factors affecting the market.

REA’s 32.24% one-year decline compares with a 14.77% fall for Aristocrat Leisure Ltd (ASX:ALL) and a 23.97% fall for Resmed Inc (ASX:RMD). REA is up 0.67% today at $155.00.

Among the 20 ASX-listed companies in this group of results, REA Group Ltd’s one-year change of down 32.24% ranks 18 of 20, where 1 is the strongest performer over the period.

FY26 Results Release

From core operations, revenue was $1,793 million, up 7%, with Australia up 11%. Operating expenses were $705 million, flat on the prior year. EBITDA excluding associates was $1,088 million, up 12%, with Australia up 13%, and the operating EBITDA Margin expanded to 66%. Net profit from core operations was $650 million, up 15%, and Earnings Per Share were $4.93, up 15%. Reported net profit was $552 million, down 19%, largely reflecting a $111 million Impairment of REA India in FY26 and a $117 million Reversal of impairment on the sale of PropertyGuru in FY25. Free Cash Flow rose 17%.

Residential revenue rose 12%, with Buy yield growth of 13% and flat Buy listings. Financial Services revenue rose 11% to $114 million. The final Dividend is $1.73 per share, fully franked, up 25%, with full-year dividends of $2.97 per share, up 20%. A $200 million on-market buy-back was executed, with over 1.25 million shares purchased. An Investor Day is planned for October 2026.

For FY27, new national Buy listings are expected to be flat to down low single digits, with July listings down 2% on the prior corresponding period, Melbourne and Sydney listings down 16% and Brisbane, Perth and Adelaide up 13%. REA expects low double-digit controllable residential Buy yield growth, driven by an 8% Premiere+ price rise, and operating cost growth of mid to high single digits including acquisitions, off a base of $609 million.

REA reports that its Australian audience engagement increased, with 14% more active members, a 15% increase in properties tracked by their owner to 5.2 million and a 22% increase in seller leads. CEO Cameron McIntyre said the company’s audience and proprietary data position it as a beneficiary of AI, and the video hub delivered 2.9 million views since its November 2025 launch.

Growth Catalysts and Critical Operating Risks

Growth catalysts identified include yield growth from the Premiere+ price rise and add-ons, AI products such as the AI Assistant and Campaign Assist, the video hub, Mortgage Choice commercial lending, iGUIDE and a lower cost base following the India exit.

Operating risks include flat to lower listings in FY27, with Melbourne and Sydney listings down 16%, proposed federal tax changes and higher interest rates affecting property market activity, reported profit falling 19% after the India impairment, operating cost growth of mid to high single digits and continued associate losses, which are expected to improve only modestly. Revenue growth depends on yield rather than listing volume.

Where Things Stand

REA reports higher core earnings, dividends and a completed buy-back, while its shares remain well below levels of a year ago. Reference points ahead include the October 2026 Investor Day and FY27 listing volumes.

FAQs

Q: What did REA Group Ltd (ASX:REA) report for FY26?

A:Core revenue of $1,793 million (up 7%), EBITDA excluding associates of $1,088 million (up 12%), core net profit of $650 million (up 15%) and reported net profit of $552 million (down 19%).

Q: What is REA’s FY27 outlook?

A:Flat to low single-digit lower national Buy listings, low double-digit controllable residential Buy yield growth and mid to high single-digit operating cost growth.

Q: How have REA Group (ASX:REA) shares performed over the past year?

A:Shares are down 32.24% over twelve months and were up 0.67% today at $155.00.

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