PEXA Group (ASX: PXA) has posted an impressive set of first-half results for FY25, with revenue and operating EBITDA both climbing by 25% and 24%, respectively. However, statutory net profit took a hit due to non-cash charges, resulting in a $32.7 million loss. Despite this, PEXA’s balance sheet and cash flow position remain strong, prompting the announcement of an on-market share buyback of up to $50 million.
Solid Performance Across the Board
PEXA’s core Exchange business continues to deliver, with revenue up 9%, driven by modest property market growth, improved transaction mix, and CPI-linked price adjustments. Meanwhile, the company’s International segment is making progress in the UK, where platform development is on schedule, and Optima Legal has grown its market share to 15%. The Digital Solutions division is also gaining traction, achieving operating EBITDA breakeven on the back of strong demand and improved cost management.
Cash Flow Strength and Deleveraging
One of the standout figures from the results was free cash flow, which surged 82% to $27.9 million. This has allowed PEXA to reduce its leverage ratio to 1.9x from 2.9x a year ago, reflecting its improved financial position.
$50M Buyback Signals Confidence
PEXA’s announcement of a $50 million on-market share buyback is a clear sign of confidence in its future. The buyback will be funded through cash and existing debt facilities, and its timing will depend on market conditions.
CEO Glenn King, who will soon step down, highlighted the company’s strategic progress and operational improvements, emphasizing that all business units contributed to growth. While statutory profits were impacted by non-cash adjustments, the company’s underlying cash generation remains strong.
Looking Ahead
PEXA remains well-positioned as it continues its UK expansion and refines its technology platforms. With a solid balance sheet, strong cash flows, and an active capital management strategy, the company is looking to build on its momentum in the second half of FY25.
