This article first appeared on GuruFocus .
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Revenue Growth:Increased by 10% compared to the first half of FY25.
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EBITDA Growth:Increased by 19%, with a margin expansion from 36.8% to 39.9%.
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Net Profit After Tax:Adjusted for acquired amortisation, rose by 33%.
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Statutory Impact from Continuing Operations:$15.4 million.
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Earnings Per Share:$0.87.
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Free Cash Flow:Increased by 25% compared to the first half of FY25.
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Net Debt to EBITDA Ratio:Reduced from 2 times to 1.4 times.
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Transaction Volume Record:41,000 transactions processed on December 19, 2025, with a settlement value of $15.1 billion.
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CAPEX in Australia:$17 million spent in the half.
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International Revenue Growth:Up almost 14%, with a gross margin increase of 20%.
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Group Operating Costs:Grew by just 3% compared to a 10% revenue growth.
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Core Net Profit After Tax:$20.8 million, up from $10.9 million in the first half of 2025.
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Free Cash Flow Conversion:49.9%, up from 32.2 million in the first half of 25.
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Debt Repayment:$25 million repaid, reducing leverage ratio to 1.4 times.
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Release Date: February 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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PEXA Group Ltd ( ASX:PXA ) reported double-digit half-year revenue growth driven by robust transaction growth across its platform.
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The company successfully managed expenses, leading to an uplift in FY26 EBITDA margin guidance.
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PEXA's UK operations are progressing well, with the NatWest implementation expected to be completed ahead of schedule.
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The Australian exchange demonstrated strong cash generation, supporting a 25% increase in group free cash flow.
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PEXA reduced its net debt to EBITDA ratio from two times to 1.4 times, enhancing financial flexibility.
Negative Points
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The interoperability program in Australia remains paused with no implementable outcome, raising concerns about future regulatory changes.
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PEXA's digital solutions segment reported a loss after tax of $29.6 million due to impairments.
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The company anticipates lower volumes and revenues in the second half of FY26, which may impact margins.
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PEXA faces potential challenges in the UK market with the need for additional resources to meet lender demand.
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The company has not provided specific guidance on the revenue impact of its new AML solution, PEXA CLEAR, creating uncertainty about its financial contribution.
Q & A Highlights
Q: Why hasn't PEXA upgraded its full-year guidance despite strong first-half results? A: Russell Cohen, CEO, explained that while they have upgraded from previous guidance, they expect normal seasonal revenue drops in the second half and an uptick in expenses due to the launch of PEXA Clear in Australia and new hires in the UK. They are trending towards the top end of their guidance range.
Q: How should we think about the Australian margin and any costs related to AML? A: Russell Cohen stated that AML costs will be included in the Australian segment and won't be separated unless they become material. They expect a slowdown in transfer momentum and a seasonal revenue drop in the second half, but aim to maintain margins.
Q: Can you provide insights on engagement with lenders outside of NatWest in the UK? A: Russell Cohen mentioned they are engaged with multiple lenders through workshops and explorations but are not sharing specifics until there is concrete news to report.
Q: How might the interoperability reports influence the IPART pricing review in Australia? A: Russell Cohen noted that while interoperability is not a formal policy, the reports suggest the current platform is the best solution. IPART's review will consider ELNO pricing, and the landscape allows for other ELNOs to build their networks.
Q: What are the expectations for UK costs and margins moving forward? A: Russell Cohen indicated that additional hires in the UK are to meet lender demand, and while costs may rise, the business is largely fixed-cost. The expansion of sale and purchase transactions in FY27 is expected to have a commensurate uplift in costs.
Q: How is PEXA Clear expected to impact revenue next year? A: Russell Cohen stated that PEXA Clear has already launched, and customers need to be compliant by July 1. Revenue uplift is expected next year, but early sales and marketing costs will appear in the second half.
Q: What progress has been made with conveyancers in the UK? A: Russell Cohen reported strong initial interest from conveyancers following roadshows. They are moving interested parties through a compliance-heavy funnel and aim to have a critical mass ready for sale and purchase transactions.
Q: Are there any updates on the total addressable market (TAM) for PEXA in the UK? A: Russell Cohen did not provide an updated TAM, noting that it depends on the timing of lender and conveyancer onboarding. They will update when appropriate.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
