Earnings release
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ABN 23 629 193 764 | PEXA Group Limited ASX Announcement: PXA 12 May 2025 PEXA 3Q25 update 3Q25 trading in line with expectations; FY25 operating guidance reaffirmed PEXA Group Limited (ASX: PXA) (“PEXA” or “Group”) has today provided an update on the quarter ended 31 March 2025 (3Q25) performance of the Group1. Commenting on the update, Mr Russell Cohen, PEXA Chief Executive Officer and Group Managing Director said: ‘Trading volumes for our Australian Exchange have remained resilient through the quarter despite continued macroeconomic volatility. At this time, we reaffirm guidance for FY25, however as I continue to conduct an in-depth assessment of our business, matters may arise in the lead up to year end which could impact our guidance on Significant Items and Depreciation & Amortisation. In my first month at PEXA, I have been struck by the enthusiasm and pride of our people in our technology and solutions that make a real difference in people's lives, and I look forward to continuing my engagement with PEXA’s stakeholders.’ Total transaction volumes processed by the PEXA Exchange were 871k in 3Q25, an increase of 4% from the prior comparative period (PCP or 3Q24). In the quarter we saw transfer volume grow by 2% on the PCP to 549k, versus 9% growth in the PCP, as the Australian market was impacted by the slowing macroeconomic environment. Refinances in the quarter benefited from the 0.25% cut to the cash rate by the Reserve Bank of Australia in February 2025, increasing 13% versus 3Q24 resulting in a 2% increase in refinance mix versus 1H25. Further information on Exchange volumes is set out in Appendix Table 1. Key business updates include: • Total national market penetration was maintained at 90% (90% at 3Q24). • We continue to extend our coverage into Tasmania, with Phase 1 (refinance) of the Tasmanian rollout complete and Phase 2 (transfers) commenced on schedule in February 2025. With initial 1 All date references in this document are to fiscal periods unless otherwise stated. Exchange national transaction volumes (actual per quarter, #’000) Quarter Transfers Refinances Other Total Refinance mix (%) 3Q24 537 179 120 837 21% 3Q25 549 202 120 871 23% Change 2% 13% 0% 4% +2 ppt Exchange For personal use only
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ABN 23 629 193 764 | PEXA Group Limited volumes slow, we are now focused on driving uptake. In Northern Territory, rollout of Phase 1 (refinance) is on schedule to be delivered by the end of the 2025 calendar year. • During the quarter , we encountered a handful of service issues which required us to work with our partners to achieve a resolution. The system remained operational throughout, maintaining a 100% uptime. All matters were resolved efficiently. Noting these service issues , our customer satisfaction score fell marginally from 90.8% for 2Q25 to 88.5% for 3Q25. We take these incidents very seriously and have used the events as an opportunity to improve our service offering and protect against future recurrences. There remains ongoing softness in the UK remortgage market with 3Q25 2 volumes falling ~4% versus PCP (or down ~6% YTD to February ‘25). Optima Legal and Smoove instruction volumes for remortgages were down 20% and 13 % respectively versus the PCP but were up from 2Q25. Optima Legal and Smoove completion volumes f or r emortgages w ere down 9% and 6% on the PCP and also fell versus 2Q25. The Gr oup’ s UK r em ort g ag e m ark e t shar e d eclined in the quart er t o 24. 5%, down f r om 26.0% in 2Q 25, but remains above 3Q24 (23.9%) measured on a rolling 3-month basis3. Smoove sale and purchase instructions were up 3% on the PCP and increased by 16% compared to 2Q25, while completions soared by 41% on the PCP and increased by 8% on 2Q25, as the UK sale and purchase market continued its recovery. PEXA platform transactions in the quarter were 176% higher than in 3Q24 and 6% higher than in 2Q25. 2 Market share based on UK Finance data (Table RL5) to February 2025. 3 Market share based on UK Finance data (Table RL5) to February 2025 on a 3 month rolling basis. Calculated as Optima Legal and Smoove remortgage completions over Total Remortgages excluding Product Transfers. Optima Legal and Smoove instruction volumes (actual per quarter, #’000) Optima Smoove Smoove Quarter Remortgages Remortgages Sale and Purchase 3Q24 18.9 11.4 7.9 3Q25 15.2 9.9 8.1 Change (20%) (13%) 3% Optima Legal and Smoove completion volumes (actual per quarter, #’000) Optima Smoove Smoove Quarter Remortgages Remortgages Sale and Purchase 3Q24 10.9 6.6 3.7 3Q25 9.9 6.2 5.2 Change (9%) (6%) 41% International For personal use only
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ABN 23 629 193 764 | PEXA Group Limited Further information on Optima Legal and Smoove volumes is set out in Appendix Table 2 and Table 3. Further information on UK Remortgage and Sales & Purchase volumes is available in Appendix Table 4. Key business updates include: • Platform and product development o Development of the Sale & Purchase proposition is well progressed with a two-sided product delivered on schedule in 3Q25, enabling the planned launch of the Sale & Purchase product later in the calendar year. o Subsequent to the end of the quarter, the UK Financial Conduct Authority (“FCA”) granted its approval of PEXA to become an Authorised Payment Institution. • Customers and Relationships o PEXA continues to work with NatWest and other lenders to progress through the pipeline. o PEXA has continued to deepen its remortgage proposition and embed it in the UK market. During the quarter, PEXA’s remortgage-focused proposition announced over £100M of property transfers using PEXA since its launch in the UK market in 2022. It has built on this progress through the introduction of ‘transfer of equity’ functionality to its product. As such, its platform can now support approximately 80% of the total addressable market for remortgage transactions in England and Wales, subject to onboarding of financial institutions and conveyancers. PEXA continues to work towards obtaining Lender commitments to the Sale & Purchase product in addition to existing Refinancing capabilities. The recently received FCA approval also allows PEXA to act as a Third Party Managed Account provider to UK Conveyancers for Sale & Purchase and Refinancing shortfall transactions. Engagement with UK Conveyancers regarding this service is underway. Digital Solutions continued its steady progress in 3Q25. • Subscriptions revenue grew by 11% relative to 3Q24, reflecting continued customer retention. Subscriptions revenue accounted for 73% of 3Q25 revenue (3Q24: 82% of revenue). • Project and consulting revenue grew by 78 % relative to the PCP, reflecting increased demand for our unique and deep consulting expertise. • Transaction related revenue grew by 111% over the PCP, driven by increased requests for customisation and configuration of our offering. Key business updates include: • Retention performance for .ID r e m a i n s s t r o n g , w i t h c h u r n a t i t s l o w e s t p o i n t o f 2 . 6 % , an improvement over the PCP churn of 4.3%. The business has also secured 6 new local, and 20 new non-local, government clients on a year-to-date basis. • We are now achieving top performance in our residential Automated Valuation Model and are focusing on building and converting a strong sales pipeline. Digital Solutions For personal use only
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ABN 23 629 193 764 | PEXA Group Limited The macroeconomic environment for both Australia and the UK remains mixed despite recent interest rate cuts. The impact of changing global tariffs and other broad economic conditions on property settlement and refinancing activity levels remains uncertain . We continue to focus on improving our operating performance, while delivering positive outcomes for our customers and stakeholders. Since Russell Cohen commenced as Chief Executive Officer and Group Managing Director on 31 March 2025, he has been undertaking a thorough assessment of the business. We will update the market on his findings at the FY25 Results in August. The Group today reconfirms its previously announced guidance for FY25, as shown in the table below. This assumes there will be no further adjustments to non-cash non -operating items from Mr Cohen’s assessment of the business. Group Business Revenue +13% – 19% Group Operating EBITDA Margin ≥ 34% Specified items4 ($35m) – ($40m) Depreciation and amortisation4 ($98m) – ($102m) Net interest expense ($5.5m) – ($7.5m) Income tax benefit / (expense) ($40m) – ($45m) Australian capex / Australian revenue 10% – 14% International operating cash outflows ($55m) – ($58m) Net debt / operating EBITDA ≤ 2.5x This release was authorised by the CEO and Group Managing Director of PEXA Group Limited. - Ends - 4 Guidance on specified items and depreciation and amortisation is subject to change as part of the ongoing assessment of the business by the new CEO and Group Managing Director. Measure FY25 Guidance Outlook For personal use only
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ABN 23 629 193 764 | PEXA Group Limited Investors Lisa Newns-Smith M: +61 405 670 981 E: investors@pexa.com.au Media Clare Gill M: +61 467 284 154 E: corporateaffairs@pexa.com.au About PEXA PEXA (Property Exchange Australia) is a world-leading, digital property exchange and data insights business, listed on the Australian Stock Exchange. Since 2013, PEXA has facilitated more than 20 million property settlements, and today, 90% of all property transfer settlements in Australia are processed on the PEXA platform. In 2022 PEXA launched its refinancing capability in the UK. For personal use only
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ABN 23 629 193 764 | PEXA Group Limited APPENDIX Table 1: Exchange national transaction volumes (actual per quarter, #’000) Table 2: Optima Legal and Smoove instruction volumes5 (actual per quarter, #’000) 5 Instructions occur when Optima or a conveyancer introduced by Smoove agree to provide conveyancing services for a remortgage, sale or purchase transaction. A completion occurs when these transactions are concluded. For transaction related work both Optima and Smoove recognise revenue on completion. Attachment revenue for Smoove is recognised when the attachment service is delivered, which usually precedes completion for the associated transaction. Not all instructions convert into a completion, and the timeframe for conversion of a given instruction into a completion can vary. Quarter Transfers Refinances Other Total Refinance mix (%) 1Q23 586 241 136 962 25% 2Q23 586 239 131 957 25% 3Q23 492 230 121 843 28% 4Q23 592 264 132 988 27% 1Q24 567 271 131 969 28% 2Q24 654 215 129 998 22% 3Q24 537 179 120 837 21% 4Q24 670 202 136 1009 20% 1Q25 645 215 138 999 22% 2Q25 681 223 134 1038 22% 3Q25 549 202 120 871 23% Optima Smoove Smoove Quarter Remortgages Remortgages Sale and Purchase 1Q23 29.9 14.5 7.6 2Q23 12.2 8.2 4.2 3Q23 11.1 11.4 6.2 4Q23 9.0 12.8 7.3 1Q24 11.3 7.9 6.5 2Q24 12.7 7.6 5.9 3Q24 18.9 11.4 7.9 4Q24 14.3 10.0 8.5 1Q25 13.4 9.1 7.6 2Q25 14.6 8.5 7.0 3Q25 15.2 9.9 8.1 For personal use only
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ABN 23 629 193 764 | PEXA Group Limited Table 3: Optima Legal and Smoove completion volumes (actual per quarter, #’000) Table 4: Remortgage and S&P market volumes (actual per quarter, #’000) 6 Source: UK Finance: Table RL5 7 Previously reported data has been changed from seasonally adjusted to as reported data. Source: UK Government Statistics – residential monthly property transactions in the UK with value £40k+ 8 Three months ending February 2025 9 3Q25 S&P market data is provisional Optima Smoove Smoove Quarter Remortgages Remortgages Sale and Purchase 1Q23 18.6 8.2 5.2 2Q23 20.8 8.5 5.4 3Q23 13.7 9.4 3.5 4Q23 7.4 8.0 3.1 1Q24 7.7 8.9 4.0 2Q24 7.4 6.5 3.9 3Q24 10.9 6.6 3.7 4Q24 11.9 8.1 4.0 1Q25 10.4 7.4 4.7 2Q25 10.9 6.7 4.8 3Q25 9.9 6.2 5.2 Market Market Quarter Remortgages6 S&P7 1Q23 93.4 337.7 2Q23 94.7 329.9 3Q23 92.2 246.2 4Q23 74.9 236.8 1Q24 79.6 273.1 2Q24 64.6 263.4 3Q24 73.0 227.4 4Q24 76.7 261.5 1Q25 65.4 297.0 2Q25 69.8 315.9 3Q25 69.98 338.39 For personal use only