PEXA Group (PXA) H1 2025 earnings summary

Executive summary

• Achieved strong strategic, operational, and financial outcomes in 1H25, with revenue and EBITDA growth, improved market share in Australia, and progress in the U.K. market, supported by the Smoove acquisition.

• Group revenue rose 25% year-over-year to $203.7 million, with operating EBITDA up 24% to $73.2 million and margin at 35.9%.

• Free cash flow increased sharply, enabling repayment of $55 million in debt and approval of an on-market buyback of up to $50 million.

• Statutory net loss after tax was $(32.7) million, mainly due to a $19 million deferred tax asset derecognition and a $15 million impairment of a minority investment.

• Leadership transition underway, with new CEO commencing 31 March.

Financial highlights

• Business revenue: $203.7 million (up 25% year-over-year); Operating EBITDA: $73.2 million (up 24%); Operating EBITDA margin: 35.9%.

• Free cash flow grew 118% to $27.9 million; free cash flow conversion improved to 40.4%.

• CapEx reduced to $28.4 million, down 17% year-over-year.

• Statutory NPAT was a loss of $32.7 million, impacted by non-cash impairment and tax adjustments.

• Excluding one-off items, NPATA was $20.8 million.

Outlook and guidance

• FY25 guidance reaffirmed: group business revenue growth of 13–19%, operating EBITDA margin ≥34%.

• Specified items expected at $35–40 million, with tax guidance reflecting a higher effective tax rate and derecognition of deferred tax assets.

• Priorities include regulatory pricing review in Australia, ARNECC engagement, UK lender onboarding, FCA approval, and S&P capability delivery.

• Continued investment planned in the Exchange and further UK investment expected to moderate after S&P delivery.

• International expansion to target new Torrens Title jurisdictions, including Canada and New Zealand.