PEXA Group (PXA) H2 2024 earnings summary

Executive summary

• Group revenue grew 21% to $340.1m, with operating EBITDA up 16% to $114.9m and NPATA up 22% to $21.1m, driven by Exchange and Digital Solutions, and supported by Smoove and Optima Legal acquisitions.

• Free cash flow increased to $38.5m, and the group achieved a 54.5% exchange margin.

• Statutory net loss after tax improved to $(18.0)m, a $3.8m reduction from FY23.

• Productivity Enhancement Program delivered $16m in annualized savings and a reduction of 146 FTEs.

• International expansion advanced with Smoove and Optima Legal integrations, though UK revenue was below target.

Financial highlights

• Statutory revenue grew 21% year-over-year to $340.1m; operating EBITDA margin was 33.5% (36.5% excluding Smoove).

• Free cash flow conversion improved to 38.5% from 17.0% in FY23.

• Net debt/operating EBITDA improved to 2.4x, with $10m debt repaid in 2H24.

• Capex was $68.8m, up 2%, with a capex to business revenue ratio of 20.0%.

• Operating cashflow yield increased to 13.4% from 11.0% year-over-year.

Outlook and guidance

• FY25 group revenue expected to grow 13–19%, with operating EBITDA margin above 34%.

• International operating cash outflows to reduce to $(55–58)m; net debt/operating EBITDA targeted at <2.5x.

• Specified items forecast at $15–20m, depreciation/amortisation at $98–102m, and net interest expense at $5.5–7.5m.

• Focus on disciplined execution, platform expansion, and capital efficiency; no material acquisitions planned.

• Ongoing cost discipline and productivity initiatives to support margins.