PEXA Group Limited (ASX:PXA) operates digital property-settlement infrastructure in Australia and is developing related platforms in the United Kingdom. FY26 delivered higher revenue, EBITDA and free cash flow, while Leverage declined. However, management expects softer Australian property transaction volumes in FY27 and continues to invest in the UK while regulatory review of electronic-conveyancing fees remains underway.

Revenue Increases to A$406.9 Million

Group Revenue increased 7% to A$406.9 million in FY26 from A$379.5 million.

Australian revenue increased 8%, while International revenue increased 1%.

The Australian Business remained the largest contributor, supported by higher property transaction volumes and CPI-linked increases in transaction pricing.

EBITDA Reaches A$151.7 Million

Group EBITDA increased 12% to A$151.7 million.

The EBITDA Margin increased to 37.3% from 35.6%.

Operating expenses increased 4% to A$185.7 million, meaning expenses grew more slowly than revenue.

Efficiency initiatives in Australia partly offset Inflation and continued Investment in the International business.

NPATA Increases 35%

Group NPATA increased 35% to A$65.3 million from A$48.2 million.

PEXA defines NPATA as statutory profit adjusted for significant items and historical Amortisation associated with acquisitions.

The measure therefore provides a different view from statutory NPAT and should be considered alongside Cash Flow and reported earnings.

Continuing Operations Return to Profit

Statutory NPAT from continuing operations was A$19.2 million, compared with a loss of A$65.6 million in FY25.

However, the total statutory result remained a loss of A$15.9 million after including a A$35.1 million loss from discontinued operations.

The discontinued loss related mainly to PEXA’s exit from Digital Solutions and associated Impairment charges.

Australian Transaction Volumes Rise 6.4%

Australian Exchange transaction volumes increased 6.4% to 4.7 million.

Average revenue per transaction increased 2.2% to A$80.6, reflecting CPI-linked price changes.

Australian revenue consequently increased to A$345.6 million, while EBITDA rose 12% to A$192.8 million.

The Australian EBITDA margin increased to 55.8%.

PEXA Extends Coverage Across Australia

PEXA now serves customers across every Australian state and territory.

During FY26, refinance transactions were digitised in the Northern Territory and activity continued to build in Tasmania.

Overall market coverage remained around 90%.

The company therefore remains highly exposed to Australian property transaction activity despite its overseas expansion.

Free Cash Flow Reaches A$93.5 Million

Free cash flow increased 39% to A$93.5 million.

The increase was supported by higher operating earnings, lower Capital Expenditure and a favourable working-capital movement.

The improved cash outcome allowed PEXA to repay A$92.4 million of net Debt during the year.

Net Leverage Falls to 1.0 Times

PEXA ended FY26 with net debt of A$158.7 million.

Net leverage, measured as net debt divided by EBITDA, declined to 1.0 times from 1.8 times in FY25.

Interest cover increased to 9.6 times from 6.7 times.

Debt facilities were also amended and extended to A$330 million, with maturities between July 2029 and July 2031.

Digital Solutions Exit Simplifies the Portfolio

PEXA completed its strategic review and sale of the Digital Solutions businesses during FY26.

The disposal reduced the number of business areas within the group and shifted greater focus toward the Australian Exchange and International operations.

The discontinued business generated impairment-related losses during FY26, which affected the total statutory result.

UK Revenue Reaches A$61.3 Million

International revenue increased 1% to A$61.3 million.

Excluding foreign-exchange movements and the cessation of a lower-margin search contract, PEXA reported underlying revenue growth of 12%.

Remortgage revenue increased as UK housing finance activity recovered, while Sale and Purchase revenue also contributed.

International EBITDA Remains Negative

The International segment reported an EBITDA loss of A$41.1 million, compared with a loss of A$37.8 million in FY25.

Operating cash outflow was A$57.6 million.

Operating expenses increased as PEXA invested in sales, operational capacity and implementation work for new lender customers.

The UK business therefore remains a material investment requirement for the group.

NatWest Remortgage Capability Goes Live

PEXA delivered NatWest’s digital remortgage capability ahead of schedule in March 2026.

The platform was subsequently launched to conveyancers across England and Wales.

For FY27, PEXA plans to increase lender and conveyancer adoption and deliver Sale and Purchase capability for NatWest in late 3Q27.

Australian Fee Review Continues

PEXA is involved in an ongoing regulatory review of Electronic Lodgment Network Operator service fees.

The draft regulatory proposal released in July included a potential reduction in PEXA’s regulated revenue from FY28.

PEXA has challenged aspects of the proposed methodology and continues to engage through the review process.

The recommendations are not yet final.

Final IPART Report Is Due in October

The regulator’s final report is now scheduled to be provided to the relevant minister by 30 October 2026.

Until that process is completed, the long-term effect on PEXA’s regulated transaction pricing remains uncertain.

Any final pricing framework could influence Australian Exchange revenue and margins from FY28 onward.

FY27 Prices Already Include CPI Adjustment

Separately from the pending regulatory review, PEXA increased its service fees by 4.1% from 1 July 2026 in line with the existing CPI-linked pricing mechanism.

From 1 October 2026, participant fees were also introduced in most jurisdictions other than New South Wales.

These are current FY27 pricing changes and are distinct from the proposed future regulatory framework.

FY27 Revenue Guidance Is A$385–415 Million

PEXA expects FY27 group revenue of between A$385 million and A$415 million.

This compares with A$406.9 million in FY26.

Management expects economic conditions and softer Australian property-transfer volumes to weigh on revenue and margins.

Transfer volumes had already begun to soften in July 2026.

EBITDA Margin Guidance Moves Lower

FY27 group EBITDA margin guidance is 31.5%–33.5%, compared with 37.3% in FY26.

The decline reflects expected softer Australian transaction activity and continuing investment in International operations.

PEXA also guides to International operating cash outflow of A$55 million to A$65 million.

Core NPAT Guidance Is A$5–20 Million

PEXA guides to FY27 core Group NPAT of A$5 million to A$20 million.

The comparable FY26 core Group NPAT figure is A$26.3 million.

The guidance therefore indicates a possible decline in core profit even if revenue remains around the FY26 level.

This reflects the company’s assumptions for transaction volumes, margins and continuing overseas investment.

Key Risks and Areas to Watch

Australian property turnover remains the largest operating variable because transaction volumes directly affect Exchange revenue.

The regulatory fee review creates additional uncertainty from FY28, while the UK operation continues to consume cash.

FY27 transaction volumes, EBITDA margin, International losses, NatWest adoption and the final regulatory recommendations will remain important indicators.