Key Highlights

• In FY26 the Australian segment generated Revenue of $345.6 million, up 8%, with average revenue per transaction of $80.6, up 2.2% on CPI-linked price increases.

• The company reported 4.2 million Exchange transaction volumes for the year, made up of about 2.67 million transfers, 0.97 million refinances and 0.55 million other transactions.

• Group revenue was $406.9 million, up 7% from $379.5 million.

• EBITDA rose 12% to $151.7 million, lifting the Margin to 37.3%.

Can PEXA Group (ASX:PXA) keep growing profit while a regulator decides how much it may charge? That is the central question for the property settlements platform, which reported a return to statutory profit for FY26 but guided to a softer FY27 and is waiting on a fee review in New South Wales. For now, the company is financially more encouraging than a year ago, yet the outcome of that review remains unresolved.

What PEXA does and how it earns revenue

PEXA operates an electronic lodgement network in Australia, where lawyers, conveyancers, lenders and revenue offices settle property transactions and lodge documents online. Revenue is largely transaction-based, so it rises and falls with the number of transfers and refinances, and with the price charged for each.

In FY26 the Australian segment generated revenue of $345.6 million, up 8%, with average revenue per transaction of $80.6, up 2.2% on CPI-linked price increases. The company reported 4.2 million Exchange transaction volumes for the year, made up of about 2.67 million transfers, 0.97 million refinances and 0.55 million other transactions.

A smaller International segment, centred on the United Kingdom, supplies remortgage and sale-and-purchase technology to lenders and conveyancers. It is still loss-making as the company invests.

The FY26 result in numbers

PEXA reported results on 28 August 2026. Group revenue was $406.9 million, up 7% from $379.5 million. EBITDA rose 12% to $151.7 million, lifting the margin to 37.3%. NPATA, which is profit before Amortisation of acquired intangibles, was $65.3 million, up 35%.

Statutory NPAT from continuing operations was $19.2 million, against a $65.6 million loss a year earlier. Including the discontinued Digital Solutions business, which carried a $35.1 million after-tax loss mostly from impairments, group NPAT was $26.3 million as shown in the company's guidance table.

Cash generation improved. Free Cash Flow was $93.5 million, up 39%, and net Debt fell by $92.4 million to $158.7 million. Net Leverage dropped to 1.0 times from 1.8 times, and Interest Cover reached 9.6 times. No final Dividend was declared.

Australia carries the profit

The Australian segment delivered EBITDA of $192.8 million, a margin of 55.8%, with operating expenses broadly flat at $107.7 million. That Operating Leverage helped Earnings grow faster than revenue.

The International segment is a different picture. Revenue was $61.3 million, up 1% reported, or 12% excluding currency effects and a low-margin search contract that ended. EBITDA was a loss of $41.1 million, and operating cash outflow was $57.6 million, little changed from the prior year.

NatWest's digital remortgage capability went live in March 2026, and the company targets sale-and-purchase capability for NatWest in the third quarter of FY27. Against that, UK remortgage market penetration fell 1.2 percentage points as lenders spread Volume across several conveyancers.

The fee review at the centre of the story

The Independent Pricing and Regulatory Tribunal (IPART) is reviewing electronic lodgement network operator service fees for the NSW Government. Its draft report, released on 3 July 2026, proposed a 20% cut to PEXA's regulated revenue from FY28, with CPI increases thereafter, according to the company's results release.

PEXA has said it has concerns about the methodology and assumptions, and lodged a submission with independent expert reports proposing alternative approaches to setting fees and rates of return. On 4 September 2026 it announced that IPART now expects to deliver its final report to the Minister by 30 October 2026, later than the 30 September date previously flagged.

The draft is a recommendation, not a decision, so the eventual outcome is uncertain.

FY27 guidance and market conditions

PEXA guided to FY27 group revenue of $385 million to $415 million, an EBITDA margin of 31.5% to 33.5%, and NPAT of $5 million to $20 million. Capital Expenditure is guided at $45 million to $55 million, and International operating cash outflow at $55 million to $65 million.

The midpoint of revenue guidance sits slightly below FY26 revenue, and the margin range is lower than the FY26 outcome of 37.3%. Management cited an uncertain Australian economy, softer transfer volumes in July 2026 of about 192,000, and the regulatory review. On 18 August the company said it expected volumes to fall in FY27 because of recent macroeconomic changes.

Competitive position

PEXA has long been the dominant platform for online property settlement in Australia, and that scale underpins its high Australian margins.

In the United Kingdom, the conveyancing market is more fragmented, and lender panels determine volumes.

Recent corporate activity

On 30 October 2026 PEXA announced completion of the sale of Value Australia, following the exit from Digital Solutions disclosed in the results. On 26 October it withdrew resolution 8(b) from its 2026 Annual General Meeting notice, which had been issued on 9 October. We make no inference about the purpose of either.

Index membership

A 28 August 2026 reports described PEXA as among the weakest performers in the S&P/ASX 200 over the prior year. The 4 September 2026 the index provider rebalance, effective 21 September, did not list PEXA among additions or removals.

Risks and what to watch

The main uncertainty is the IPART outcome and how governments apply it, including timing and any transition. A lower regulated revenue base would flow quickly to a Business with high incremental margins.

Property volumes are sensitive to interest rates, housing affordability and tax settings. The company itself flags changes to property taxation and evolving regulation as risks.