OFX Nears Platform Migration Finish as Multi-Product Revenue Surges 177%
OFX nears completion of New Client Platform migration as multi-product adoption accelerates
In its Q4 FY26 trading update, OFX Group outlined significant progress in its platform transformation, with 91% of Corporate clients across major markets now migrated to the New Client Platform (NCP) as at 31 March 2026. Globally, the migration stood at 78% complete, with remaining clients expected to transition by the end of Q1 FY27. The company also announced the NCP will launch in Singapore and New Zealand, marking a key milestone in the “OFX 2.0” transition strategy.
The platform migration represents a critical de-risking event for the business. By moving existing clients from legacy systems to a unified modern infrastructure, OFX positions itself to scale non-FX products and improve client lifetime value—the core investment thesis underpinning the strategic transformation.
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Non-FX revenue surges as clients embrace multi-product platform
Non-FX revenue climbed 177.4% on the prior corresponding period (PCP) and 16.4% on Q3 FY26, reaching $0.6M for the quarter. March demonstrated particularly strong momentum, with non-FX revenue up 34.4% versus February, signalling acceleration heading into FY27.
Product-level performance showed broad-based growth. Subscription revenue increased 35.0% on Q3 FY26, Pay by Card revenue rose 18.1%, and Card revenue grew 4.0%, with a notable 31.5% month-on-month increase in March. Multi-product adoption rates continued to climb, with 8.4% of Corporate clients now using more than one OFX product, up from 4.5% in Q3 FY26. Australian adoption nearly doubled quarter-on-quarter to 13.1%, driven by Cards and Subscriptions uptake. Importantly, 27.1% of new Corporate clients are adopting multiple products from the outset, while migrated clients reached 4.4% multi-product usage, up from 1.9% in Q3 FY26.
| Metric | Q3 FY26 | Q4 FY26 | Change |
|---|---|---|---|
| Non-FX Revenue | $0.5M | $0.6M | +16.4% |
| Multi-product clients | 4.5% | 8.4% | +3.9ppts |
| Australian adoption | ~7% | 13.1% | Nearly doubled |
| New clients multi-product | – | 27.1% | – |
The rising non-FX revenue trajectory and expanding multi-product adoption validate the platform strategy. These metrics point to improving revenue diversification and stronger client retention, addressing a key investor question about the commercial viability of the OFX 2.0 model.
What is platform migration and why does it matter for investors?
Platform migration refers to the process of transitioning existing customers from legacy systems to a unified modern platform—in OFX’s case, the New Client Platform. For clients, this means accessing multiple financial services through a single interface: foreign exchange, corporate cards, subscription management, and payment automation.
The investment significance lies in operational leverage and revenue expansion potential. Legacy systems typically support single-product usage and require manual workarounds for cross-selling. A unified platform enables clients to adopt multiple products seamlessly, reducing operational complexity for OFX while improving client experience. This directly translates to higher revenue per client and lower churn rates.
Client wallet balances provide evidence of this value creation. Balances grew to $232.9M as at the end of March, up from $207.8M at the end of Q3 FY26. Growing wallet balances indicate clients are consolidating more of their financial operations onto the OFX platform, a leading indicator of deeper engagement and higher lifetime value.
Successful migration completion removes execution risk and unlocks OFX’s ability to scale non-FX products—the foundation of management’s growth strategy for FY27 and beyond.
Soft February weighs on quarterly NOI but March shows recovery
Net Operating Income (NOI) declined 9.6% on Q3 FY26 and 11.8% on PCP, coming in at $43.5M for the quarter. Management attributed the softer result to an unusually weak February driven by business and consumer confidence issues across major markets including Canada, the United States, United Kingdom and Australia. Geopolitical events, shifting interest rate expectations, and recession concerns weighed on client activity.
Corporate revenue fell to $26.2M, down 11.5% on Q3 FY26 and 14.4% on PCP. Cross currency Average Transaction Values (ATVs) increased 2.2% on Q3 FY26, but this was more than offset by a 12.2% decline in transaction volumes. High Value Consumer revenue remained stable at $14.0M compared to Q3 FY26, though down 10.7% on PCP. Enterprise revenue totalled $2.1M, down 34.6% on Q3 FY26 due to normal seasonality, but up 23.2% for the full year.
Management emphasised March trading returned to more normal levels, providing reassurance that the February softness reflected temporary macro headwinds rather than structural deterioration.
Skander Malcolm, CEO and Managing Director
“While it was disappointing that NOI was lower in the fourth quarter, this was due to an unusually soft February and we are encouraged by the positive momentum we have seen in March.”
The quarterly dip appears tied to macro conditions and seasonal factors. March’s recovery suggests these headwinds were transient, providing a more stable base heading into FY27.
Cost discipline and balance sheet strength support FY27 growth targets
OFX maintained disciplined cost management throughout the quarter, with total operating expenses now expected to come in below the bottom end of the guidance range provided at 1H FY26 results. This cost discipline supports margin preservation as the company scales its multi-product platform.
The balance sheet remains in a healthy position. Net Cash Held stood at $71.6M, down $8.2M from Q3 FY26. After deducting collateral and bank guarantees, Net Available Cash totalled $49.6M, down $4.8M on Q3 FY26 but up $2.4M on 1H FY26. The company continues to generate cash, providing runway to execute its growth strategy without capital constraints.
Management outlined FY27 targets, aiming for growth in Group NOI and Corporate Active Clients. Expected NOI growth will be driven by stabilising Consumer revenue and growth in Corporate active clients. Growth in Corporate active clients is expected to be supported by lower lapse rates—both from fewer OLS and Firma client departures, and from improved retention of existing clients engaging more frequently through the NCP. Corporate NTC growth (excluding OLS) reached 7.0% on PCP despite the softer February, demonstrating underlying demand momentum.
Disciplined cost management combined with a healthy cash position gives OFX the financial flexibility to invest in client acquisition and product development while targeting profitability improvement. Management’s explicit FY27 growth targets provide investors with measurable benchmarks to assess execution progress.
Strategic review progresses with multiple parties
OFX’s strategic review, announced on 5 February 2026, has received healthy interest from multiple parties. A select number of parties have progressed to the next phase of the review process. The company noted there is no certainty the strategic review will lead to a particular transaction or other outcome. If a binding transaction emerges, OFX will update the market accordingly.
The strategic review introduces optionality for shareholders, though investors should note no binding transaction has been announced and outcomes remain uncertain.
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Product delivery momentum continues with 55+ new features
OFX added more than 55 new features to the platform during Q4 FY26, demonstrating sustained product velocity. Key developments included:
- Launched physical Corporate Cards in the United States, United Kingdom and European Union
- Enhancements to the advisor portal to allow accountants to manage client workflows via the OFX platform
- QuickBooks bank feeds integration to reduce manual data entry for clients
The product delivery cadence supports the multi-product platform thesis. By continuously expanding functionality and integration capabilities, OFX strengthens its value proposition for corporate clients managing cross-border financial operations. The advisor portal enhancement addresses accountant and bookkeeper workflows, a strategic distribution channel for corporate client acquisition.
OFX will release its full year FY26 results on Tuesday, 19 May 2026. The management team will host a conference call and webcast at 10:00am AEST that morning. The company is a global money transfer and financial operations provider, ASX-listed since 2013, with approximately 700 employees and licences in around 50 jurisdictions.
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