REA Group Posts Strong Q3 FY26 Growth with Record Australian Audiences and Improved Cost Guidance

Strong Australian Market Performance Drives Revenue Growth

REA Group Ltd (ASX:REA) posted an 11% revenue increase excluding mergers and acquisitions in Q3 FY26, powered largely by a 12% jump in Australian residential revenue. The lift was fuelled by a 14% rise in Buy yield, underpinned by a 7% increase in average Premiere+ listing prices and greater uptake of add-on products. National listing volumes returned to growth, with Sydney and Melbourne leading the charge at 4% and 7% respectively. This marks a notable rebound after several quarters of flat or declining listings, reflecting resilient buyer demand and a property market that is keeping pace with supply.

Commercial and New Homes segments also contributed double-digit revenue growth, driven by higher prices and increased listing volumes. Financial Services, including Mortgage Choice and PropTrack, posted strong results with a 21% increase in mortgage settlements and expanded data contract revenues. These gains underline REA's diversified revenue streams beyond core residential listings.

Record Engagement on realestate.com.au Amid AI Enhancements

REA’s flagship platform, realestate.com.au, set new engagement records with an average of 12.9 million monthly visitors in the quarter, a 19% increase in active members, and a 28% surge in seller leads. The platform attracted 150 million monthly visits, far outpacing its nearest competitor by over 100 million visits. Buyer enquiries rose 10%, highlighting the site’s effectiveness in connecting buyers and sellers. CEO Cameron McIntyre highlighted the role of artificial intelligence in enhancing user experiences, with conversational search expanding to the app and next-generation AI-powered tools rolling out for customers and brokers. Additionally, the launch of iGUIDE Australia in March, following its acquisition in October 2025, expands REA’s footprint in immersive property photography services.

These developments build on earlier momentum from REA’s strategic AI investments, which were key drivers of the group's 5% revenue growth in the first half of FY26 and the $200 million on-market share buy-back announced in February $200 million share buy-back. The company’s focus on AI and product innovation appears to be strengthening its market position amid a more balanced property market.

International Operations Show Mixed Results

REA’s international performance was uneven. Indian operations, including Housing.com, saw a 17% decline in Australian dollar terms due to intense competition and pricing pressures, with overall India revenues down 65% following the divestment of PropTiger and discontinuation of Housing Edge. The strategic reset in India has led to a 45% reduction in operating costs there, reflecting a simplified structure and cost discipline.

Conversely, North American revenue from Move, Inc. rose 10% to US$148 million, driven by premium product sales and growth in Seller, New Homes, and Rentals segments. REA’s 20% stake in Move reported a flat equity accounted loss of $4 million, while iGUIDE contributed $5 million in revenue since consolidation in October 2025.

Cost Management and Outlook Improvements

Operating expenses rose modestly by 1% unadjusted and 5% excluding M&A impacts, with Australian costs up 9% due to marketing campaigns like the Australian Open and higher costs of goods sold linked to Audience Maximiser. Excluding these factors, Australian operating expenses increased by 6%, indicating disciplined cost control amid growth initiatives.

REA lowered its FY26 operating cost growth guidance to low to mid single digits for the group and mid to high single digits for Australia, signaling improved efficiency. The group expects positive operating leverage for the full year, supported by anticipated 13% growth in residential Buy yield despite a forecast 1-3% decline in national listing volumes. April listings notably surged 19% year-on-year, with Melbourne and Sydney up 20% and 25% respectively, although this was against easier comparables.

These results and guidance updates follow a series of strategic moves, including REA’s acquisition of iGUIDE and the leadership transition to CEO Cameron McIntyre in late 2025, whose digital marketplace expertise is steering the group’s innovation and growth trajectory Cameron McIntyre CEO appointment. The company’s ability to leverage AI and maintain audience dominance will be critical as it navigates market headwinds and competitive pressures.