REA Group Reports 5% Revenue Rise, 62% EBITDA Margin in H1 FY26

Financial Performance and Market Context

REA Group Ltd (ASX – REA) has delivered a robust half-year performance for the six months ending 31 December 2025, reporting a 5% increase in revenue to $916 million and maintaining a healthy operating EBITDA margin of 62%. The company’s net profit after tax rose 9% to $341 million, reflecting steady growth in its core Australian property marketplace business despite a challenging broader property market.

Market conditions showed signs of improvement, particularly in Melbourne and Sydney, where listings have begun to recover, supported by strong buyer demand. Nationally, buyer enquiries hit a four-year high with a 20% year-on-year increase, underscoring the platform’s continued relevance and engagement with consumers.

Strategic AI Integration and Audience Growth

REA Group’s strategic focus on artificial intelligence is reshaping how consumers experience property. The company reported record unique audiences of 13.2 million in November, with users spending an average of 35.8 minutes per visit on realestate.com.au. AI-powered features such as natural language search, conversational assistants, and personalised video hubs have enhanced user engagement and customer value.

On the customer side, REA’s Premiere+ and Elite Plus advertising products achieved record penetration, driving higher yield per listing and deeper market penetration. The acquisition of a 61.5% stake in Planitar Inc., known for its iGUIDE 3D tour technology, complements REA’s immersive consumer experience strategy.

Financial Services and International Operations

The financial services segment, including Mortgage Choice and PropTrack, grew revenue by 11%, supported by increased settlements and broker productivity. This segment is becoming an increasingly important revenue contributor, reflecting REA’s diversification beyond traditional property listings.

Internationally, REA’s North American operations showed promising growth, with Move, Inc. revenue up 10% driven by premium product sales and increased lead volumes. Conversely, the India segment underwent a strategic reset focusing on the core Housing.com business, resulting in a 40% revenue decline but with operating costs also reduced by 27%, aiming for improved profitability.

Capital Management and Outlook

REA Group announced an on-market share buy-back program of up to $200 million, signalling confidence in its financial position and future prospects. The company ended the half with a strong cash balance of $478 million and no external debt, maintaining financial flexibility for ongoing investment.

Looking ahead, REA expects a slight 1% decline in national residential buy listings for FY26, with Melbourne and Sydney markets remaining relatively flat. However, the company anticipates continued growth in residential buy yield and aims to maintain positive operating jaws, balancing revenue growth with disciplined cost management. Investment in AI and technology platforms remains a priority to sustain competitive advantage and customer value.