PEXA’s 1Q26 Transaction Volumes Rise 6%, UK Market Share Hits 26%

• 6% increase in total transaction volumes led by Australian refinancing
• UK remortgage completions up 32%, market share grows to 26%
• Reaffirmed FY26 guidance with revenue target of $405m-$430m
• Ongoing investment in Australian platform resilience and UK market expansion
• Customer satisfaction improves slightly to 88.3%

Strong Start to FY26 Amid Market Nuances

PEXA Group Limited has delivered a solid performance in the first quarter of fiscal 2026, with total transaction volumes on its digital property exchange platform rising 6% year-on-year to 1.055 million. This growth was primarily driven by a 16% surge in refinancing activity in Australia, benefiting from recent cash rate cuts by the Reserve Bank of Australia. Transfer volumes also edged up 3%, reflecting steady demand in property transactions.

Despite a slight softening in Australian property market volumes early in the second quarter, PEXA’s CEO Russell Cohen expressed confidence in the company’s trajectory, reaffirming the FY26 guidance issued at the previous year’s results. The guidance anticipates group revenue between $405 million and $430 million, with an EBITDA margin of 32% to 35%, underscoring management’s commitment to delivering sustainable growth.

UK Market Momentum and Strategic Partnerships

On the international front, PEXA’s UK operations are gaining traction. The company reported a 32% increase in remortgage completions through its Optima Legal platform and a 22% rise via Smoove, with overall UK remortgage market share climbing to 26% in 1Q26 from 22% in the prior quarter. This growth comes despite a marginal decline compared to 1Q25, attributed to the loss of a low-margin mandate within Smoove.

PEXA is on track to launch a PEXA-enabled remortgage service with NatWest in the first half of calendar 2026, a key milestone that could significantly enhance its UK market footprint. The company has also initiated regional roadshows to onboard conveyancers and recently announced a strategic collaboration with Muve, a leading UK conveyancing firm, signaling a deepening commitment to expanding its digital property exchange ecosystem.

Investing in Platform Resilience and Regulatory Compliance

Back home, PEXA continues to invest in modernizing its Australian Exchange platform to improve service delivery and customer outcomes. The company is also preparing to launch an Anti-Money Laundering (AML) solution ahead of new regulatory requirements coming into effect in July 2026, demonstrating proactive compliance management.

Customer satisfaction for the Exchange nudged higher to 88.3% in 1Q26, reflecting steady user approval. Meanwhile, PEXA’s Digital Solutions segment saw a 15% increase in subscription revenue and a 19% rise in project and consulting revenue, although transaction-related revenue declined due to the strategic exit from the Land Insight business. The ongoing strategic review of this segment aims to optimize growth and shareholder value.

Outlook and Market Positioning

While early signs of softness in the Australian property market warrant attention, PEXA’s diversified revenue streams and international expansion efforts position it well for the remainder of FY26. The company’s ability to capitalize on refinancing trends domestically and build momentum in the UK market will be critical to sustaining its growth trajectory.

Bottom Line?

PEXA’s steady 1Q26 performance and strategic UK push set the stage for a pivotal year ahead.

Questions in the middle?

• How will the upcoming IPART pricing review impact PEXA’s Australian revenue model?
• What are the potential risks and rewards of the NatWest remortgage service launch in the UK?
• How will the exit from the Land Insight business affect long-term transaction-related revenues?