PEXA Group (PXA) H2 2024 earnings summary

Executive summary

• Group revenue rose 21% to $340.1m, operating EBITDA increased 16% to $114.9m, and free cash flow surged 175% to $38.5m, driven by revenue growth, cost and CapEx management, and operational improvements.

• Non-exchange revenue now represents 15% of total revenues, reflecting successful diversification since IPO.

• NPAT was AUD 21 million, up 22% year-over-year, supported by higher revenue and improved margins.

• Digital Solutions achieved operating EBITDA break-even in June 2024.

• CEO announced intention to retire by end of FY 2025, with succession planning underway.

Financial highlights

• Statutory revenue grew 21% year-over-year to $340.1m; group operating EBITDA margin was 33.5%.

• Free cash flow increased to $38.5m (+175% YoY); cash balance at period end was AUD 90.5 million.

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

• Operating expenses grew by 4% pro forma, reflecting productivity gains and cost discipline.

• 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 group margin above 34%.

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

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

• Effective tax rate to remain elevated due to Australian profits and conservative tax treatment of UK losses.

• Focus on sustainable growth, operational efficiency, and capital-light mechanisms for expansion.