OFX Faces Uncertainty as CFO Departs and Strategic Review Begins

Strategic Review Initiated to Unlock Shareholder Value

OFX Group Limited (ASX, OFX), a global player in cross-border payments, has announced the commencement of a strategic review aimed at maximising shareholder value. The review will consider a broad spectrum of organic growth initiatives alongside potential inorganic opportunities, including a possible sale of the company. The Board has engaged Goldman Sachs Australia to advise on this process, underscoring the seriousness of the review.

This move comes amid a backdrop of subdued topline growth and a softer macroeconomic environment that has weighed on the company’s net operating income (NOI). Despite these challenges, the Board remains confident in OFX’s long-term prospects, citing its robust global infrastructure, strong cash generation, and the growth potential embedded in its 2.0 strategy.

Mixed Trading Update for 3Q FY26

OFX’s 3Q FY26 results reveal a nuanced picture. Net operating income declined 4.0% compared to the previous quarter and 11.7% against the prior corresponding period, reflecting ongoing global economic headwinds and historically low foreign exchange volatility. Corporate client activity was temporarily disrupted due to the migration of clients to the new client platform (NCP), which is on track for completion by the end of FY26.

On a positive note, non-FX revenue surged 44% quarter-on-quarter, driven by increased adoption of new products such as corporate cards and the Pay By Card feature. This growth signals successful execution of OFX’s diversification strategy beyond traditional foreign exchange services. Wallet balances also grew, contributing to a 5.1% rise in interest income.

Client Migration and Product Innovation Progress

The migration to the NCP is a critical component of OFX’s 2.0 strategy, with 71.1% of global corporate clients already transitioned. This platform upgrade is designed to enhance client experience and enable cross-selling of additional financial products. Recent product enhancements include in-product marketing tools, global accounting system integrations, and improved payment controls to combat fraud.

While active corporate clients dipped slightly during the quarter due to migration-related disruptions, December saw a rebound in client activity. New transacting clients remain up year-to-date, suggesting the refreshed go-to-market approach is gaining traction despite a temporary slowdown in promotional spending.

Leadership Change Amid Strategic Transition

In a significant leadership development, CFO Selena Verth announced her resignation after more than eight years with OFX. Verth has been instrumental in strengthening OFX’s financial controls and integrating key acquisitions. She will remain with the company until June 2026 to ensure a smooth handover during this pivotal period, which includes the ongoing strategic review.

CEO Skander Malcolm praised Verth’s contributions, highlighting her role in OFX’s transformation and growth. The search for a new CFO is underway, adding another layer of change as the company navigates its strategic options.

Outlook and Market Position

Looking ahead, OFX expects the second half of FY26 to deliver lower NOI compared to the prior corresponding period, reflecting continued macroeconomic uncertainty. Nevertheless, the company’s balance sheet remains strong, with net cash holdings increasing to $79.8 million. The strategic review and ongoing platform enhancements position OFX to capitalise on a large global market opportunity, though investors will be watching closely for clarity on the review’s outcomes and leadership succession.