PEXA Group (PXA) H1 2025 earnings summary

Executive summary

• Statutory/business revenue rose 25% year-over-year to $203.7 million for 1H25, with operating EBITDA up 24% to $73.2 million and margin at 35.9%; all segments contributed to improved performance.

• Free cash flow increased sharply, supporting a $50 million on-market share buy-back and repayment of $55 million in debt.

• Statutory NPAT was a loss of $32.7 million, mainly due to non-cash impairment and $19 million deferred tax asset derecognition.

• International expansion progressed, with UK platform development, Smoove acquisition, and improved Optima Legal performance.

• Leadership transition underway, with new CEO commencing 31 March 2025.

Financial highlights

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

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

• Statutory NPAT loss of $32.7 million, impacted by $19 million deferred tax asset derecognition and $15 million impairment.

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

• Net cash from operating activities: $56.1 million; cash and equivalents: $60.6 million at period end.

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 higher effective tax rate and derecognition of deferred tax assets.

• Continued investment in Exchange and UK, with moderation after S&P delivery; Digital Solutions investment to support scalability.

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

• Leadership transition with new CEO commencing 31 March 2025.