OFX Group has almost completed migrating its corporate clients to a new platform, driving a 177% jump in non-FX revenue despite a quarterly dip in overall income. The company targets a return to growth in FY27 amid ongoing strategic review.
- New Client Platform migration 91% complete for corporate clients
- Non-FX revenue up 177% year-on-year and 16% quarter-on-quarter
- Corporate multi-product adoption nearly doubled in Australia
- Net Operating Income down 9.6% quarter-on-quarter due to soft February
- Strategic review progressing with multiple interested parties
Platform Migration Nears Completion
OFX Group (ASX:OFX) is on the cusp of completing a major technology overhaul, with 91% of its corporate clients migrated to the New Client Platform (NCP) across its key markets by the end of March 2026. This milestone marks a significant step in the company’s OFX 2.0 transition, aimed at modernising its service delivery and expanding product offerings. The remaining corporate clients are expected to transition by the end of the first quarter of FY27, with launches planned for Singapore and New Zealand.
Surge in Non-FX Revenue and Multi-Product Uptake
The platform upgrade appears to be paying off in revenue diversification. Non-FX revenue soared 177.4% compared to the previous corresponding period and climbed 16.4% quarter-on-quarter, driven by a rebound in March activity after a quieter start to the quarter. Subscription services, Pay by Card, and corporate card revenues all contributed to this growth, with card revenue alone up 31.5% month-on-month in March.
Client engagement is deepening, with the share of corporate clients using multiple OFX products rising to 8.4% overall and nearly doubling in Australia to 13.1%. This trend suggests the platform’s expanded capabilities; like the launch of physical corporate cards in the US, UK, and EU, and enhanced accounting integrations; are resonating with customers and fostering stickiness.
Quarterly Income Dip Amid Soft February Trading
Despite these positives, OFX reported a 9.6% decline in Net Operating Income (NOI) quarter-on-quarter to $43.5 million, and an 11.8% fall against the prior year. CEO Skander Malcolm attributed this to an unusually soft February, particularly in major markets such as Canada, the US, UK, and Australia, where geopolitical uncertainty and recession fears weighed on business and consumer confidence. However, March showed signs of recovery, with NOI momentum improving.
Corporate segment revenues also fell 11.5% quarter-on-quarter, impacted by a 12.2% drop in transaction volumes despite a modest 2.2% rise in average transaction values. Consumer revenue remained stable quarter-on-quarter but was down 10.7% year-on-year. The enterprise segment experienced seasonal softness but recorded a 23.2% revenue increase over the full year.
Strategic Review Advances Amid Uncertainty
OFX continues to explore strategic options following the review announced in February 2026. The company has engaged with multiple interested parties and progressed some to the next phase of discussions. While this signals potential for a significant transaction, OFX cautions there is no certainty of an outcome. The strategic review follows a period of operational transition and financial challenges, including the CFO resignation earlier this year, as detailed in the company’s launches strategic review amid mixed 3Q FY26 results.
Outlook for FY27
Looking ahead, OFX is targeting a return to growth in Group NOI and corporate active clients in FY27. This optimism rests on stabilising consumer revenues and accelerating corporate client engagement, supported by lower lapse rates and increased multi-product adoption. The company expects the recent uptick in new transacting clients to continue, underpinned by a healthier promotional pipeline and deeper client wallet balances, which rose to $232.9 million at the end of March.
Operating expenses are expected to come in below prior guidance, reflecting disciplined cost management. The balance sheet remains robust, with net cash held at $71.6 million despite a modest reduction from the previous quarter, supporting ongoing investment in growth initiatives.
Bottom Line?
OFX’s near-complete platform migration and strong non-FX revenue growth set a foundation for FY27, but the soft quarterly income and uncertain strategic review outcome warrant close attention.
Questions in the middle?
- Will OFX’s multi-product adoption gains translate into sustained revenue growth?
- How will the strategic review shape OFX’s capital structure and market positioning?
- Can consumer segment revenues stabilise amid ongoing macroeconomic uncertainty?