PEXA FY25 Revenue Hits $393.6M, EBITDA Up 21%, UK Launch Imminent

Strong Growth Amid Strategic Transition

PEXA Group Limited reported a robust financial performance for the fiscal year ended June 30, 2025, with group revenue climbing 16% to $393.6 million and EBITDA rising 21% to $134.4 million. This growth was driven by solid contributions across its three core segments – the Australian Exchange, International operations, and Digital Solutions.

Despite these operational gains, the company recorded a statutory net loss after tax of $76.1 million, primarily due to significant non-recurring impairments related to changing market conditions and strategic asset reviews. These impairments, including the write-down of outdated technology and deferred tax asset derecognition, cloud the headline profitability but do not diminish the underlying business momentum.

Australian Exchange Segment – Market Leadership Consolidated

The Exchange segment, which facilitates digital property settlements in Australia, remains PEXA’s flagship operation. Revenue grew 7.5% to $313.8 million, supported by increased transaction volumes and regulatory-approved price rises. The segment achieved an EBITDA margin of 55%, underscoring operational efficiency despite higher investments in cybersecurity and platform resilience.

Operationally, PEXA completed its national rollout, expanding into Tasmania and the Northern Territory, bringing its market coverage to 90%. This near-ubiquitous presence cements PEXA’s role as a critical infrastructure provider in Australia’s property market.

International Expansion – UK Platform Launch on Horizon

PEXA’s International segment showed promising progress, with revenue up 15.4% on a pro-forma basis to $60.7 million. The UK business, anchored by the Smoove acquisition, achieved EBITDA breakeven in the second half of FY25 and completed integration efforts.

Significantly, the Financial Conduct Authority approved PEXA as an Approved Source Account, enabling the company to offer a comprehensive digital property transaction product. The first UK digital property transaction was successfully executed, and a key milestone was reached with NatWest’s written commitment to implement the platform, starting with remortgages in late FY26 and expanding to sales and purchases by year-end.

Digital Solutions – Growth Amid Strategic Review

The Digital Solutions segment delivered strong revenue growth of 21.7% to $19.1 million, driven by its Insights business, including .id and Value Australia. However, PEXA has initiated a strategic review of this segment to evaluate its fit within the broader group strategy. This review has already led to the withdrawal from its majority investment in Land Insight, signaling potential portfolio reshaping to maximize shareholder value.

Financial Health and Outlook

PEXA improved its free cash flow by 45% to $56 million, enabling a $53.1 million net debt reduction and an $18.9 million share buyback. The company’s leverage ratio improved from 2.5x to 1.8x, and interest cover strengthened to 6.7x, reflecting a healthier balance sheet.

Looking ahead, PEXA projects FY26 group revenue between $405 million and $430 million, with an EBITDA margin forecast of 32% to 35%. The company plans targeted investments focused on profitable growth, including innovations like an Anti-Money Laundering solution tailored for the Australian property sector.