Key Highlights

• Group Revenue rose 7% to $406.9 million, from $379.5 million in FY25.

• Management guided to group revenue of $385 million to $415 million.

• EBITDA rose 12% to $151.7 million and the EBITDA Margin rose 1.7 percentage points to 37.3%.

• NPATA, which is net profit after tax before Amortisation of acquired intangibles, rose 35% to $65.3 million.

What happens to a digital property-settlement network when transaction volumes weaken? PEXA Group (ASX:PXA) provides an early answer. In its FY26 result, released on 27 and 28 August 2026, it reported a return to statutory profit and a sharp drop in leverage, yet guided to FY27 revenue of $385 million to $415 million and NPAT of $5 million to $20 million, flagging challenging Australian market conditions. The result shows a Business that improved its Balance Sheet and focus while warning that its core market may be softer.

All figures are Australian dollars for the year ended 30 June 2026, as reported in coverage of the company's results.

What the FY26 result showed

Group revenue rose 7% to $406.9 million, from $379.5 million in FY25. EBITDA rose 12% to $151.7 million and the EBITDA margin rose 1.7 percentage points to 37.3%. NPATA, which is net profit after tax before amortisation of acquired intangibles, rose 35% to $65.3 million. Statutory NPAT from continuing operations was $19.2 million, compared with a $65.6 million loss in FY25. Free Cash Flow rose 39% to $93.5 million.

The balance sheet improved markedly. Leverage, measured as net Debt to EBITDA, fell to 1.0 times from 1.8 times, and PEXA paid down $92.4 million of net debt. No final Dividend was declared. Readers should check the Appendix 4E for the interim position.

How PEXA makes money

PEXA operates the digital exchange through which lawyers, conveyancers, banks and revenue offices lodge and settle property transfers and refinances in Australia. Revenue is largely transaction-based, so it is exposed to the Volume of property sales and refinancing, along with fees set partly by regulatory arrangements. The company has also built compliance-related services, including PEXA Clear, and international operations in the United Kingdom, where it has been investing in digital remortgage and sale and purchase functionality.

During FY26 PEXA expanded coverage to all Australian states and territories, onboarding Tasmania and the Northern Territory. It also sold its Digital Solutions arm to sharpen its focus on the core exchange and international growth. A network business with national coverage has encouraging structural advantages because participants need to use the same platform, but that same position invites regulatory attention on pricing.

FY27 guidance

Management guided to group revenue of $385 million to $415 million. At the midpoint of $400 million, that is slightly below FY26 revenue of $406.9 million. NPAT guidance of $5 million to $20 million compares with $19.2 million in FY26, so even the top end implies profit no higher than the FY26 outcome.

These are forecasts, and they are cautious. Management's priorities for FY27 include strengthening the Australian Exchange, growing compliance services through PEXA Clear, piloting a capital-light model in New Zealand and launching Sale and Purchase for NatWest in the United Kingdom.

Regulation and pricing

The risk most specific to PEXA is regulatory. Coverage noted proposed changes to regulated fee settings that the company is discussing with regulators. In general terms, a platform that functions as essential infrastructure can face limits on how much it can raise prices, so any change to the fee framework would feed directly into revenue and margin.

The UK opportunity and cost

It delivered NatWest's digital remortgage functionality ahead of schedule and plans to launch Sale and Purchase for NatWest. Progress depends on persuading lenders, conveyancers and estate agents to change established processes. Investors should view the UK as a long-dated option that absorbs cash in the near term, not a source of near-term earnings.

Sector and competitive position

Volume risk comes from interest rates, housing affordability and consumer confidence, none of which the company controls. In the UK, incumbents and established processes are the main hurdle.

Material risks

- Weaker Australian property transaction and refinancing volumes.

- Regulatory changes to fee settings.

- Continued UK losses and execution risk on the NatWest launch.

- Technology, Cybersecurity and operational resilience of critical settlement infrastructure.

- Execution of the New Zealand capital-light pilot.

- The absence of a final dividend, which means shareholders currently rely on Capital growth rather than income.

What to monitor

Investors will follow monthly and quarterly property settlement data, the outcome of discussions with regulators on fees, the 1H FY27 result, progress towards NatWest Sale and Purchase, and whether deleveraging below 1.0 times leads to renewed capital management.