OFX Group (OFX) H2 2025 earnings summary

Executive summary

• Fiscal year 2025 results showed revenue and net operating income declines due to persistent weak business confidence, political instability, and global tariff threats, especially impacting SMEs.

• Underlying EBITDA fell 10.7% to $57.7M, with margins softening to 26.8%, but strong cash generation and disciplined cost control supported financial stability.

• Statutory NPAT dropped 20.6% to $24.9M, and underlying NPAT fell 18.2% to $27.7M.

• Strategic transformation through the OFX 2.0 strategy and accelerated New Client Platform (NCP) rollout is underway, expanding the value proposition and total addressable market.

Financial highlights

• FY25 revenue was $221.9M, down 3.4% year-over-year; net operating income was $214.9M, down 5.5%.

• Underlying EBITDA margin was 26.8%, down 160bps; NOI margin softened by 3bps to 0.56%.

• Operating expenses were $157.2M, down 3.5% year-over-year; employment expenses fell 3.7%.

• Net cash held at year-end was $77.2M after $24M debt repayment and $13.7M share buyback.

• Bad and doubtful debts dropped 42.7% to $2.1M due to strengthened controls.

Outlook and guidance

• No specific NOI guidance for FY26 due to ongoing macroeconomic uncertainty and global tariff impacts.

• Investments in accelerated NCP rollout and go-to-market strategy will preclude operating leverage in FY26 and FY27.

• Long-term guidance targets 15%+ NOI growth and ~30% EBITDA margins by FY28, with confidence in non-FX revenue growth.