FY26 revenue climbs 7% to $406.9m as PEXA swings back to statutory profit
In its FY26 results presentation dated 28 August 2026, PEXA Group reported group revenue of $406.9m, up 7% on the prior year, alongside a 12% rise in group EBITDA to $151.7m and a return to statutory profit for FY26.
Management, led by CEO and Group Managing Director Russell Cohen and Interim CFO Liz Warrell, outlined statutory net profit after tax (NPAT) of $19.2m, a swing from the FY25 statutory loss of ($65.6m). The result told a two-speed story: a strongly profitable Australian core funding an investment-phase UK operation, set against heightened Australian regulatory uncertainty tied to the Independent Pricing and Regulatory Tribunal (IPART) pricing review.
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FY26 financial results at a glance
The presentation emphasised operating leverage across the group, with the EBITDA margin expanding 1.7ppt to 37.3% as cost efficiency measures in Australia supported revenue growth. Free cash flow rose 39% to $93.5m, while net debt to EBITDA improved to 1.0x from 1.8x.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Group Revenue | $406.9m | $379.5m | +7% |
| Group EBITDA | $151.7m | $135.1m | +12% |
| EBITDA margin | 37.3% | 35.6% | +1.7ppt |
| NPATA | $65.3m | $48.2m | +35% |
| Statutory NPAT | $19.2m | ($65.6m) | Swing to profit |
| Free cashflow | $93.5m | $67.2m | +39% |
| Net Debt/EBITDA | 1.0x | 1.8x | Improved |
FY25 comparatives were restated to exclude the results of Digital Solutions, now reported within discontinued operations.
Australia delivers the engine room result
The Australian segment remained the group’s profit driver. Management reported Australian revenue of $345.6m (up 8.4%), EBITDA of $192.8m (up 11.5%), an EBITDA margin of 55.8% (up 1.6ppt), and operating cash flow of $157.7m (up 13.6%).
Operational highlights from the presentation included:
- Record transaction volumes in December 2025 drove revenue growth
- Full national coverage, with the Northern Territory refinance launch in August 2025, transfers scheduled to go live in mid FY27, and paper title removal in Tasmania from 1 September 2026
- Customer satisfaction steady at 89% and market coverage steady at 90%
- $35.1m invested in platform security, reliability and resilience
- A regulatory-approved price increase of 2.4% applied in July 2025
This segment funds group-wide investment. Management noted that volumes moderated below the prior comparative period from July 2026, following macroeconomic changes late in FY26, indicating a softer start to FY27.
The IPART pricing review: the key issue for investors to watch
The IPART pricing review stands as the central variable in the investment case. IPART has proposed a 20% cut to PEXA’s regulated revenue from FY28, a recommendation the company has challenged on methodological grounds.
PEXA’s core objection is that IPART applied a Building Block Methodology (BBM), an approach traditionally used for capex-heavy physical infrastructure assets. The company noted that capital expenditure represents 49–69% of total expenditure for physical infrastructure companies but only 17% for PEXA Exchange in FY25, which it argues produces a lower return on assets and recovery of capital invested.
The company also argued that IPART’s inputs into the model, notably the weighted average cost of capital (WACC) in PEXA’s early years, are highly contestable, and that several alternative and more appropriate approaches could be used to calculate the Initial Asset Base (IAB), all of which suggest IPART’s draft calculation is much too low.
PEXA’s four-year phasing proposal sits at the centre of the regulatory dispute, with the difference between a one-year and a four-year implementation determining whether the annual earnings impact is approximately $17.5m or the full $70m in a single year.
The regulatory timeline outlined in the presentation is as follows:
- August 2025: IPART commences the pricing review and calls for industry submissions
- July 2026: IPART releases its Proposed Methodology paper
- September 2026: IPART releases its draft Report
- September 2026: IPART final report due to NSW Government
- Approximately 2Q27 to 3Q27: ARNECC determines any changes to pricing
Separately, the Australian Registrars’ National Electronic Conveyancing Council (ARNECC) concluded that it will not proceed with the Interoperability Program at this time. Independent reports found the program would not achieve its intended result and would involve significant cost, complexity and implementation time. ARNECC will instead focus on strengthening the existing eConveyancing regulatory framework.
ARNECC halted the interoperability program in March 2026 after independent reports found it would not achieve its intended result, a decision that preserved the structural moat underpinning PEXA’s 90% domestic market share ahead of the IPART pricing review.
Understanding eConveyancing: why PEXA’s platform matters
PEXA operates as an Electronic Lodgement Network Operator (ELNO), a digital property settlement network authorised to lodge and settle property transactions. Its two core volume drivers are transfers, the change of a land title from one party to another, and refinances, where a borrower discharges a mortgage with one lender and takes a new one with another.
The Australian segment achieved an EBITDA margin of 55.8% in FY26, supported by operating leverage from cost efficiency measures.
International: disciplined UK investment for future scale
The presentation noted that opex growth precedes revenue growth as the company invests in operational resources to meet industry adoption. International revenue reached $61.3m (up 1.0%, or 12.2% excluding foreign exchange and the terminated low-margin search contract), while EBITDA recorded an investment-led loss of ($41.1m). Gross margin grew 15% over the year.
Key highlights from the update included:
- NatWest remortgage implementation delivered three months ahead of schedule
- NatWest Sale & Purchase implementation completion expected by the end of 3Q27
- Optima Legal facilitated initial NatWest remortgage volumes smoothly
- Smoove delivered a solid performance despite market uncertainty
- The UK government launched a roadmap to reform home buying and selling
Management noted the UK market recovery slowed in the second half of FY26, impacted by affordability and consumer confidence.
PEXA Clear and the New Zealand pilot: new growth avenues
The presentation detailed two growth initiatives. PEXA Clear, launched in 4Q26, helps real estate agents and conveyancers meet Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) requirements, with pricing from $40+GST for individuals. Early adopter data showed a customer mix of 75% real estate agents and 25% practitioners.
In New Zealand, a capital-light eConveyancing pilot is scheduled to commence in October 2026. Phase 1 covers secure document validation and e-signing and excludes lodgement and financial settlement.
FY27 guidance and outlook
Management presented FY27 core financial operating guidance, noting it reflects the macro environment and the company’s disciplined growth objectives.
FY27 Guidance (from the presentation)
Group revenue of $385m to $415m, a Group EBITDA margin of 31.5% to 33.5%, and Group Core NPAT (continuing operations) of $5m to $20m.
| Metric | FY27 Guidance |
|---|---|
| Group Revenue | $385m–$415m |
| Group EBITDA margin | 31.5%–33.5% |
| Group Core NPAT (continuing) | $5m–$20m |
| Group Capex | ($45m)–($55m) |
| International operating cash flow | ($55m)–($65m) |
Management noted that the EBITDA margin guidance is sensitive to Australian transfer volumes. The company modelled scenarios ranging from a -5% to a -20% change in Australian transfer volumes, which produced estimated group EBITDA margins between 34.5–36.0% and 29.0–30.5% respectively. These scenarios do not constitute guidance and exclude both management decisions around cost efficiency measures and the final outcome of the ongoing pricing review of ELNO fees.
The FY26 result presents a profitable, cash-generative Australian core that has returned to statutory profit, with net debt reduced to 1.0x EBITDA from 1.8x, funding UK expansion and new growth options such as PEXA Clear and the New Zealand pilot. For investors, the IPART pricing review remains the defining variable shaping the outlook from FY28 onwards.
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