- 01PEXA cuts FY27 revenue guidance to $355m–$380m.
- 02Australian Exchange volumes fell 11.5%; October transfers were down 26%.
- 03Core NPAT forecast: -$6m to +$6m.
PEXA Group (ASX: PXA) has lowered its FY27 revenue and earnings guidance after weaker Australian property transactions weighed on its September-quarter performance.
The digital property settlements operator now expects revenue of $355 million to $380m, down from its previous forecast of $385m to $415m.
Its expected group EBITDA margin has narrowed to 29%–31.5%, compared with the earlier 31.5%–33.5% range.
The downgrade follows an 11.5% annual fall in transactions processed through its Australian Exchange to 934,000 in 1Q27, with conditions deteriorating further in October.
A pricing review of electronic lodgement network operator services remains another consideration, with the New South Wales Government expected to make the final regulatory report public by 18 November before further consideration of any pricing changes.
Australian Transfers Under Pressure
Property transfers accounted for the sharpest decline during 1Q27, falling 15.2% from the corresponding quarter to 566,000 as interest rate rises and lower property prices affected buyer confidence.
Refinancing transactions slipped 6.4% to 233,000 while other transactions decreased 3.2% to 135,000, lifting refinancing’s share of total Exchange activity to 25% from 24%.
The pressure persisted into October, when Australian transfer volumes were 26% below the corresponding month a year earlier although refinancing volumes were broadly unchanged.
Its network coverage expanded in Tasmania after paper titles were removed from Land Titles Office processes from 1 September, while Northern Territory transfer capability was scheduled for launch during the week of 9 November.
Reduced Profit Expectations
The revised forecast for core net profit after tax from continuing operations ranges from a $6m loss to a $6m profit, replacing an earlier expectation of $5m–$20m in profit.
PEXA reduced its planned capital expenditure range to $45m–$50m from $45m–$55m, while leaving its international operating cash outflow forecast unchanged at $55m–$65m.
The group is tightening cost control and capital allocation to moderate the margin impact from lower cyclical transfer volumes without compromising the Exchange network and customer operations.
“Through this challenging period of lower cyclical volumes, we are maintaining disciplined cost control while protecting the integrity of our platform and customer operations, and the strategic direction of the business,” managing director Russell Cohen said.
“Against the backdrop of a significant decline in Australian property transaction market activity, PEXA’s Australian Exchange customer satisfaction has continued to remain broadly stable at approximately 90%, in line with historical levels, demonstrating our focus on providing outstanding service to our customers nationally.”
UK Expansion Continues
In the United Kingdom, Optima Legal completed 15,400 remortgages during 1Q27, an increase of 12.7% as customers sought to lock in rates before expected increases.
Smoove recorded 7,400 remortgage completions, down 17.8% because of weaker volumes from a panel lender, while its sale and purchase completions dipped 1.2% to 5,300.
NatWest continued processing remortgages through PEXA’s UK platform, with faster transaction processing and improved customer satisfaction reported during the quarter.
Implementation work also began on NatWest sale and purchase transactions, with the first such transaction targeted by the end of March 2027.
Alongside the offshore rollout, PEXA Clear began generating revenue in Australia following the introduction of new anti-money laundering and counter-terrorism financing requirements on 1 July, with customer onboarding deliberately paced to support reliability.
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