OFX Group reports a modest decline in revenue for 1H26 but highlights strong progress in its OFX 2.0 platform rollout and client acquisition, setting the stage for future growth.
- Fee and Trading Income down 4.7% to $109.1 million
- Net Operating Income decreased 5.6% to $105.0 million
- Corporate transaction volumes up 5.7% despite lower average transaction values
- Global rollout of new client platform ahead of schedule with 11.8% growth in new corporate clients
- Share buy-back program underway and capex guidance lowered due to strong execution
Financial Performance Amid Macroeconomic Headwinds
OFX Group Limited (ASX, OFX) has released its financial results for the first half of FY26, revealing a modest decline in key revenue metrics amid a challenging global economic environment. Fee and Trading Income fell 4.7% to $109.1 million, while Net Operating Income (NOI) dropped 5.6% to $105.0 million compared to the prior corresponding period. The company attributes these declines primarily to ongoing macroeconomic uncertainty and softer consumer confidence, which have impacted average transaction values across its corporate client base.
Despite these headwinds, OFX’s corporate transaction volumes increased by 5.7%, signaling resilient client activity even as individual transaction sizes shrank. The Enterprise segment showed robust growth, with revenue up 46.7%, marking the third consecutive half of double-digit expansion.
Progress on OFX 2.0 Strategy and Platform Migration
Central to OFX’s outlook is its OFX 2.0 strategy, designed to capture a substantial US$66 billion SME market opportunity by expanding beyond traditional foreign exchange revenue streams. The global rollout of its new client platform (NCP) is progressing ahead of schedule, with the platform now live for new clients across all major markets including Australia, Canada, EMEA, and the US.
Corporate new transacting clients (NTCs) have grown by 11.8%, reflecting strong market acceptance of the refreshed go-to-market approach. Migration of existing corporate clients to the NCP is on track, with nearly 50% migrated in key regions and an expectation to reach 80% by the end of the third quarter of FY26. This migration is already driving increased product adoption and a 23.8% growth in non-foreign exchange revenue from the first to the second quarter of FY26.
Capital Management and Outlook
OFX continues to generate healthy cash flows, reporting $16.5 million in net cash from operating activities and maintaining a cash conversion rate above 100%. The Group’s net available cash stood at $47.1 million as of 30 September 2025. Debt repayments are ongoing, with $18.5 million remaining due by May 2027.
The company has also initiated a share buy-back program, acquiring 2.3 million shares for $1.9 million in the second quarter of FY26, with plans to continue the program through the second half of the year. Capex guidance for FY26 has been revised downward to approximately $20-21 million, reflecting strong execution efficiencies.
Looking ahead, OFX targets NOI growth in the second half of FY26 and expects to complete the migration of all corporate active clients across its major markets. The High Value Consumer segment migration to the new platform is planned for FY27. The Group reaffirms its long-term guidance of delivering annual NOI growth exceeding 15% from FY28, supported by an underlying EBITDA margin of around 30%.
Bottom Line?
OFX’s strategic platform rollout and disciplined capital management position it well for a rebound, but macroeconomic uncertainties remain a watchpoint.
Questions in the middle?
- How will ongoing macroeconomic volatility affect average transaction values and revenue in 2H26?
- What impact will the full migration to the new client platform have on client retention and revenue diversification?
- How aggressively will OFX pursue its share buy-back program amid evolving market conditions?