OFX Q1 FY26 Net Operating Income Climbs 11.3% Amid Platform Rollout

A Mixed but Promising Start to FY26

OFX Group Limited has delivered a cautiously optimistic trading update for the first quarter of the 2026 financial year. The company reported net operating income (NOI) of $54.9 million, marking an 11.3% increase compared to the previous quarter, though still down 3.0% against the prior corresponding period. This reflects a market environment that is stabilizing after recent volatility, coupled with solid execution of strategic initiatives.

Key to this performance is the ongoing rollout of OFX’s New Client Platform (NCP), which is gaining traction across multiple regions. In Australia, approximately 40% of corporate clients have migrated to the NCP, with client retention improving to the lowest lapse rate in five quarters. The platform also launched in Canada and the EMEA region during the quarter, attracting strong early interest and boosting foreign exchange activity by more than 10% for migrated clients.

Segment Performance Highlights

The Enterprise segment stood out with a remarkable 42.3% revenue increase quarter-on-quarter and a 33.5% rise year-on-year, signaling strong momentum in this area. Consumer revenue showed a modest 2.4% increase from the previous quarter but remains down 9.1% compared to last year, reflecting ongoing challenges in transaction volumes despite higher average transaction values.

OFX also introduced 35 new features during the quarter, including digital forwards that allow clients to lock in exchange rates amid economic uncertainty, customized pricing, AI-driven expense allocation, and enhancements to payment processing. The popular Pay By Card feature was reinstated in July following a vendor transition, expected to contribute positively to revenue from the second quarter onward.

Capital Management and Outlook

In a significant move, OFX announced a new on-market share buy-back program allowing the repurchase of up to 10% of its ordinary shares over the next 12 months. This decision follows a period of prioritizing cash preservation amid market volatility and signals confidence in the company’s financial position. The buy-back will commence after the upcoming AGM in August, subject to regulatory and market conditions. Additionally, OFX plans to recommence debt repayments, further strengthening its balance sheet.

CEO Skander Malcolm expressed optimism about the company’s trajectory, highlighting improved client confidence and the promising early adoption of non-foreign exchange products. With the NCP rollout advancing and new features enhancing client offerings, OFX appears well positioned to accelerate growth in both FX and non-FX revenues.