PEXA Group (PXA) – Trading update

PEXA Group provides a digital property settlements platform in Australia and the UK, operating through three divisions: 1) its core exchange platform; 2) its international arm which offer settlement and refinancing services in the UK; and 3) a digital solutions development unit.

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Pexa Group reiterated its FY26 guidance in a strong March-quarter trading update that highlighted ongoing momentum in Australian property transaction volumes. Domestic volumes are tracking well ahead of internal expectations, with total transactions up 7.3% year on year (YoY). This compares with prior assumptions for a modest decline in second-half volumes, and marks a robust start to the second half of FY26.

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The strength was evident across key transaction categories, including transfers, refinances and other transactions, all recording solid year-on-year growth. National market penetration remained stable at around 90%, consistent with recent periods. Operationally, the Australian business continues to perform well, supporting confidence around earnings delivery in the near term. That said, there are emerging risks to fourth-quarter activity, including consecutive interest rate increases, softer auction clearance rates and the potential for tax reform affecting investment properties.

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The UK business showed mixed trends, although currency movements provided a short-term tailwind by reducing losses in the segment. Remortgage instruction volumes were strong as borrowers moved to lock in fixed rates ahead of anticipated interest rate rises, although some market share softness was evident. Importantly, many of these instructions are expected to convert to completions in the first quarter of FY27, providing some forward earnings support.

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Despite these positives, the review of integrated property accounting service prices by the NSW Independent Pricing and Regulatory Tribunal (IPART) remains a key near-term overhang for investors, with a final report not due until September. Resolution of the pricing review is likely to be the catalyst required to unlock investor confidence in Pexa’s prospects and valuation upside. We maintain our Buy recommendation and target price of $20.00.

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