PEXA Faces Statutory Loss Amid Impairments Despite Strong Core Earnings

Strong Financial Performance Amid National Expansion

PEXA Group Ltd delivered a solid set of results for the fiscal year ended June 2025, reporting group revenue of AUD 393.6 million, marking a 16% increase over the prior year. This growth was underpinned by the company’s continued rollout across Australia, now achieving over 90% market coverage, including new enablement in Tasmania and groundwork laid for the Northern Territory launch.

Group EBITDA rose 21% to AUD 134.4 million, with the EBITDA margin improving to 34.1%, reflecting operating leverage from expanding transaction volumes and cost efficiencies. Free cash flow surged 45% to AUD 56 million, enabling PEXA to reduce net debt to 1.8 times EBITDA, down from 2.5 times in FY24, strengthening the balance sheet.

Statutory Loss Reflects One-Off Charges and Strategic Investments

Despite operational progress, statutory net profit after tax (NPAT) showed a loss of AUD 76.1 million, primarily due to significant non-operating items including AUD 48.5 million in impairments related to intangible assets and restructuring costs totaling AUD 6.3 million. These charges reflect PEXA’s ongoing strategic reset, including the integration of the UK-based Smoove acquisition and pausing of certain interoperability programs.

UK Market Entry Gains Momentum

Internationally, PEXA made notable strides with the completion of its UK platform build and receipt of Financial Conduct Authority approval as an Authorised Payment Institution. The company achieved the UK’s first digital property transaction using its Sale & Purchase platform and secured a written commitment from NatWest in July 2025, a key Tier 1 lender representing approximately 72% of the UK mortgage market.

With beta testing underway and broader launch imminent, PEXA is positioning itself to capture growth in the UK’s digital conveyancing market. The integration of Smoove has reached EBITDA breakeven in the second half of FY25, signaling improved operational performance.

Digital Solutions Segment Under Strategic Review

The Digital Solutions division, focused on data and analytics products, nearly doubled revenue to AUD 19.1 million and improved EBITDA losses, but remains unprofitable. PEXA announced a strategic review to assess options for this segment, including potential divestments or further investment to drive profitable growth.

Outlook and Strategic Priorities for FY26

Looking ahead, PEXA projects FY26 group revenue between AUD 405 million and AUD 430 million, with an EBITDA margin range of 32% to 35%. The company plans to focus on profitable growth through AI adoption, enhancing anti-money laundering capabilities, and continuing platform development, particularly in the UK. Regulatory engagement remains a priority, alongside investments in cyber security and resilience.

PEXA’s management emphasizes execution discipline, aiming to deliver shareholder value by balancing growth initiatives with cost control and capital efficiency.