OFX Group (OFX) H1 2025 earnings summary

Executive summary

• H1 2025 results were below expectations due to delayed macroeconomic improvements, with fee and trading income flat at $114.5 million and net operating income (NOI) down 3.5% to $111.2 million; underlying EBITDA was $29.0 million, down 8.8% year-over-year.

• Statutory net profit after tax was $10.7 million, down 32.3%, impacted by a $2.2 million non-cash fair value loss on Paytron contingent consideration and absence of a prior year $3.7 million escrow release.

• Strategic pivots to B2B, global expansion, and platform rollout drove resilient margins and growth in Corporate and Enterprise segments, with new platform adoption accelerating non-FX revenue.

• Disciplined cost controls reduced operating expenses by 1.4% to $82.1 million.

• No dividends were paid; a share buyback program continued, with $3.3 million spent to repurchase shares.

Financial highlights

• NOI margin was 0.60%, flat year-over-year; underlying EBITDA margin was 26.1%.

• Statutory EBITDA was $25.7 million, down from $30.7 million in the prior year; underlying EBITDA was $29.0 million, down from $31.8 million.

• Net cash held at $74.7 million, down 19.5% year-over-year, with net available cash at $45.9 million.

• Turnover decreased 4.0% to $18.4 billion; active clients down 8.1% to 132.9k.

• Bad and doubtful debts were down 41.7% and less than 0.6% of revenue.

Outlook and guidance

• Fiscal year 2025 NOI expected to be stronger in H2 than H1, with a full-year EBITDA margin target of 28%.

• Long-term outlook remains for more than 15% NOI growth and EBITDA margins above 30%.

• Medium-term guidance will be updated with FY25 results after assessing New Client Platform performance.

• Focus on accelerating non-FX product growth and platform adoption, with further international expansion planned.