PEXA Reports 16% Revenue Rise, 21% Core EBITDA Growth, But Posts $76M Statutory Loss
PEXA Group Limited reported a 16% revenue increase to $393.6 million for FY25, driven by growth across its Australian Exchange, UK International business, and Digital Solutions segments. Despite a statutory net loss of $76.1 million due to impairments and deferred tax derecognition, core EBITDA rose 21% with improved margins.
- 16% revenue growth to $393.6 million in FY25
- Core EBITDA up 21% to $134.4 million with margin expansion
- Statutory net loss of $76.1 million driven by non-cash impairments
- UK platform development advanced with FCA approval and NatWest commitment
- Strategic review initiated for Digital Solutions business segment
Strong Financial Growth Despite Statutory Loss
PEXA Group Limited has delivered a robust financial performance for the 12 months ended 30 June 2025, with group revenue rising 16% to $393.6 million. This growth was underpinned by solid contributions from its core Australian Exchange, the expanding UK International business, and the Digital Solutions segment. Core EBITDA increased 21% to $134.4 million, reflecting operational efficiencies and disciplined cost management, with the EBITDA margin improving to 34.1%.
However, the company reported a statutory net loss after tax of $76.1 million, a significant increase from the prior year. This loss was primarily driven by non-cash impairments totaling $48.5 million, including write-downs of intangible assets such as the interoperability software and Digital Solutions products, alongside a $19 million derecognition of deferred tax assets related to Australian tax losses. These accounting adjustments reflect the challenging macroeconomic environment and strategic portfolio reviews.
Expansion and Innovation in Australia and the UK
PEXA’s Australian Exchange remains the cornerstone of its business, facilitating over 90% of property transactions nationally and processing $1 trillion in property transactions for the first time in a financial year. The company invested $34 million in infrastructure improvements to enhance platform resilience and customer experience, including expanding coverage to Tasmania and the Northern Territory, achieving full national reach.
Internationally, PEXA made significant strides in the UK market. The company received approval from the UK Financial Conduct Authority to operate as an Authorised Payment Institution, a critical milestone enabling the launch of its Sale & Purchase product. PEXA’s UK platform is now capable of handling approximately 70% of property transaction flows in England and Wales. The formal commitment from NatWest to implement remortgage and Sale & Purchase transactions on the platform marks a key step toward commercial scale. Integration of recent acquisitions Smoove and Optima Legal has strengthened PEXA’s UK market presence, with both businesses showing revenue growth and operational improvements.
Strategic Review and ESG Commitments
PEXA has initiated a strategic review of its Digital Solutions portfolio, which includes property analytics and valuation services, to assess its alignment with the broader group strategy. This follows solid revenue growth in this segment but also reflects a focus on capital allocation and operational discipline.
On the environmental, social, and governance (ESG) front, PEXA achieved net zero scope 1 and 2 emissions, with its Melbourne, Sydney, and Leeds offices powered by 100% renewable energy. The company continues to embed sustainability into its operations and community engagement, including partnerships supporting affordable housing and Indigenous engagement initiatives.
Leadership and Governance
FY25 saw leadership transitions with Russell Cohen appointed as Group Managing Director and CEO in March 2025, bringing extensive international technology and platform experience. The board was also refreshed with the appointment of Georgina Lynch, enhancing property and financial services expertise. The company maintained strong governance practices and active regulatory engagement, particularly in anticipation of upcoming pricing reviews and interoperability reforms.
Capital management remained prudent, with the company executing an on-market share buy-back of approximately 1.66 million shares at an average price of $11.35, returning $18.9 million to shareholders. Net debt was reduced to $244.6 million, improving leverage ratios and interest coverage.
Bottom Line?
As PEXA prepares for its UK platform launch and navigates regulatory reviews, investors will watch closely how strategic initiatives and impairment impacts shape future profitability.
Questions in the middle?
- How will the strategic review of Digital Solutions affect PEXA’s growth trajectory and capital allocation?
- What is the timeline and market uptake outlook for the UK Sale & Purchase platform post-FCA approval and NatWest commitment?
- How will regulatory pricing reviews and interoperability reforms impact PEXA’s Australian Exchange revenue and margins?