REA Group reported a solid start to FY26 with 4% revenue growth and a key acquisition that enhances its AI-driven property technology portfolio. Despite challenges in India, the Australian market’s strong yield growth and product adoption underpin a confident outlook.
- Q1 revenue up 4% to AUD 429 million, EBITDA up 5%
- Australian revenue growth of 6%, driven by price rises and premium product uptake
- India revenue declined 20% due to divestments and regulatory impacts
- Acquisition of iGUIDE expands AI-powered 3D property technology capabilities
- Outlook targets stable listing volumes and double-digit yield growth
Strong Start to FY26 Amid Healthy Property Market
REA Group Ltd has kicked off the 2026 financial year with encouraging momentum, reporting a 4% increase in revenue to AUD 429 million and a 5% rise in EBITDA to AUD 254 million for the first quarter ended 30 September 2025. This performance reflects the company’s ability to grow yields despite a moderation in listing volumes compared to the prior year’s exceptional levels.
The Australian property market remains robust, supported by strong buyer demand and ongoing house price growth. REA’s Australian operations delivered a 6% revenue increase to AUD 405 million, buoyed by strategic price rises across its premium offerings and growing adoption of add-on products such as Audience Maximiser and Luxe. These factors helped offset an 8% decline in national residential listings, underscoring the company’s success in extracting greater value per listing.
Mixed Fortunes in India and Strategic Portfolio Moves
REA’s Indian segment faced headwinds, with revenue declining 20% year-on-year. This was primarily due to the divestment of PropTiger and the discontinuation of the Housing Edge business following regulatory changes that affected its commercial viability. Despite modest growth in core housing revenue, these factors weighed on overall performance. The company’s strategic focus remains on Housing.com, aiming to sharpen its market position in India.
In a notable strategic move, REA acquired a 61.5% controlling stake in Planitar Inc., the Canadian developer of iGUIDE, for AUD 55 million. iGUIDE’s advanced AI-powered platform offers immersive 3D virtual tours, precise floor plans, and reliable property measurement data, positioning REA to enhance its technological edge in property marketing and customer experience. The acquisition, effective from 1 October 2025, adds a promising dimension to REA’s product suite.
Operational Costs and Forward Guidance
Group operating expenses rose by 3%, with Australian costs increasing 10% due to higher employee expenses, marketing initiatives such as the Ready25 event, and investments in AI technology. Conversely, Indian operating costs declined by 22%, reflecting the scaling back of non-core businesses. REA expects mid single-digit growth in group operating expenses for FY26, factoring in the consolidation of iGUIDE and divestments.
Looking ahead, REA maintains a positive outlook for the Australian residential market, anticipating listing volumes to remain broadly stable and targeting double-digit yield growth driven by a 7% average price rise for its Premiere+ product. The company also expects modest improvements in associate contributions and EBITDA losses in India to range between AUD 40-45 million due to the exit of Housing Edge.
Leadership Confidence and Market Position
New CEO Cameron McIntyre expressed confidence in REA’s strategic direction and talent pool, highlighting the company’s financial strength and product innovation pipeline as key enablers for sustained growth. With record audience engagement on realestate.com.au and expanding digital offerings, REA is well positioned to capitalize on evolving market dynamics and deliver enhanced value to customers and investors alike.
Bottom Line?
REA Group’s blend of yield growth, strategic acquisitions, and disciplined cost management sets the stage for a compelling FY26 trajectory.
Questions in the middle?
- How will the integration of iGUIDE impact REA’s product innovation and revenue streams?
- What are the long-term prospects for REA’s Indian operations post-divestments and regulatory changes?
- Can REA sustain double-digit yield growth amid fluctuating listing volumes and market conditions?