OFX Group Eyes FY27 Growth Return After Platform Investment Erodes Earnings

A year of transformation: OFX navigates macro headwinds while building for growth

In its FY26 results presentation delivered on 19 May 2026, OFX Group (ASX: OFX) reported a year shaped by two competing forces: a challenging macro environment that weighed on volumes, and a platform transformation that management described as largely delivered.

Net operating income (NOI) came in at $196.6m, down 8.5% on the prior corresponding period (PCP), while underlying EBITDA fell 56.4% to $25.2m, reflecting both lower revenues and deliberate investment in the OFX 2.0 strategy. Net available cash stood at $49.6m. Management framed FY26 as an investment year, with Corporate migration to the New Client Platform (NCP) reaching 91% across major markets, and positioned FY27 as the year the business returns to growth.

FY26 financials in detail: investment phase weighs on earnings

Revenue and NOI under pressure from volume softness

Fee and trading income fell 8.1% to $203.9m, driven by softer cross-currency volumes, low business confidence, and a sharp drop in FX volatility. Management noted that FY26 recorded only 46 days of volatility against 88 days in FY25, a roughly 50% decline that directly constrained transaction activity.

Corporate cross-currency average transaction values (ATVs) declined 4.1% to $28.4k, while cross-currency transactions fell 2.5% to 672,400. Consumer revenue dropped 13.8% to $58.6m, a decline management attributed in part to a deliberate strategic de-emphasis of the Consumer segment while Corporate migration was prioritised.

Two segments offered more encouraging results. Enterprise revenue grew 23.5% to $11.7m, its third consecutive year of double-digit growth. Non-FX revenue grew 12.1% to $1.8m for the full year, with a standout exit rate: the 4Q26 Non-FX run rate was +177.4% versus 4Q25, signalling strong forward momentum despite the modest full-year dollar figure.

Cost structure reflects deliberate 2.0 investment

Underlying operating expenses rose 9.1% to $171.5m. Excluding bad debts, management noted the increase was a more contained 6.5%, reflecting the deliberate investment profile of the year.

The $11.8m incremental OFX 2.0 uplift cost was broken down as follows: $7.4m in employment costs (sales, growth, and technology headcount); $2.6m in go-to-market (GTM) enhancements and Non-FX platform costs; and $1.8m in NCP promotion, including costs associated with regional launches.

Bad and doubtful debts increased materially to $6.3m, up from $2.1m in FY25, a 200% rise. Management attributed this to a small number of incidents within the North American Corporate segment, noted that 2H26 bad debts were slightly lower than 1H26, confirmed that recoveries are being pursued, and stated that risk settings and controls have been enhanced. Statutory NPAT swung to a loss of $0.4m, compared to a profit of $24.9m in FY25.

What is OFX 2.0 and why does it matter for investors?

At the centre of OFX’s multi-year transformation is the New Client Platform (NCP), a modern, scalable, all-in-one global financial platform designed to replace the company’s legacy infrastructure. The old system constrained OFX’s ability to offer multi-product services at scale. The NCP removes that constraint, enabling the company to bundle FX payments with complementary products such as corporate cards, digital wallets, and accounting integrations under a single client experience.

The efficiency gains from the migration illustrate the operating leverage embedded in the new architecture. Active clients on the NCP grew almost 14x while server costs increased only 2.7x, a ratio that underpins management’s confidence in margin expansion as volumes recover.

Multi-product adoption is the mechanism through which the NCP translates into higher average revenue per client (ARPC). Clients using more than one Non-FX product demonstrate lower lapse rates, meaning the revenue base becomes more durable as the product suite deepens. The NCP platform currently supports:

• Corporate cards (physical and virtual)
• Global spend management
• FX payments to 170+ countries
• AP and bill automation
• Multi-currency digital wallets
• 2-way accounting integrations (Xero, QuickBooks)

For investors, the platform build is the enabling condition for management’s medium-term target of 15%+ annual NOI growth. The technology story and the financial thesis are directly linked: a broader product set drives higher ARPC, and a scalable platform allows that expansion without proportional cost increases.

Strategic review, FY27 priorities, and the path to 15%+ NOI growth

Strategic review enters Phase 2 with multiple credible parties

Management announced in February 2026 that a strategic review was underway, following increasing inbound inorganic interest. The presentation confirmed that Phase 1 is now complete, with significant global interest received and selected parties progressed to Phase 2 as at May 2026.

Phase 2 is expected to conclude in Q1 FY27, by approximately September 2026. The board’s stated rationale centres on long-term value not being reflected in the current share price, given what management described as strong cash generation and the platform foundations now in place.

Investors should note the explicit caveat included in the presentation: “No certainty the review will lead to a transaction or any particular outcome.” The review represents a potential value catalyst, not a confirmed outcome, and OFX has committed to updating the market in line with its continuous disclosure obligations.

FY27 growth drivers and medium-term targets

Management outlined a return to both NOI growth and Corporate Active Client growth in FY27, with cost growth limited to inflation, including a rebasing of performance incentives. Capex guidance for FY27 was set at $19–20m.

Medium-term financial targets, as presented, are 15%+ annual NOI growth and an approximately 30% underlying EBITDA margin, both of which assume no one-off large bad debts or unusual events.

Specific FY27 growth catalysts identified by management include:

• Complete Corporate migration (excluding a small number of edge cases)
• Roll out new Consumer product including cards; commence Consumer migration in 4Q27
• Launch NCP in Singapore and New Zealand in 1Q27
• Commence Enterprise migration
• Deploy AI agents including Verification Hub, in-platform expense policy review, and Data Analyst
• Launch payment links product for Corporate
• Execute dedicated sales pods and multi-product activation campaigns

NCP metrics signal early traction

The NCP engagement data presented offers early evidence that the platform is building momentum. Key metrics as at the end of FY26 included:

• Active clients on NCP: 23,300 (up 70.1% vs 1H26)
• NCP wallet balances: $232.9m (up 7.7x vs PCP)
• Multi-product adoption across all NCP clients: 8.4% in 4Q26 vs 4.5% in 3Q26
• Total cards issued: 6,900 (up 72.8% vs 1H26)
• Clients with paid subscriptions: 832 (up 102.4% vs 1H26)
• 4Q26 interest income on NCP wallet balances: approximately $1m, with management expecting this to grow as more clients take up wallet balances

Skander Malcolm, Chief Executive Officer and Managing Director

“Our mission is simpler financial operations, helping businesses thrive globally. We have the modern platform, the product suite, and the team to accelerate growth from here.”

The combination of accelerating multi-product adoption, a growing wallet balance base generating interest income, and recently migrated regions yet to reach full-year run rates presents the forward-looking case for OFX’s growth return. Whether the strategic review adds a further catalyst will become clearer as Phase 2 concludes in the quarter ahead.

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