Earnings call transcript: PEXA falls 18% as FY 2027 outlook turns cautious

PEXA's earnings call highlighted a mixed outlook for the upcoming fiscal year, with revenue surpassing AUD 400 million for the first time in FY 2026 while profit surged. However, investors focused on a cautious forecast for FY 2027 and regulatory uncertainty. The company's shares fell 18.05% to $6.63 from $8.09, nearing its 52-week low.

Despite strong growth in FY 2026, including a 7% revenue increase to AUD 401 million and a 186% jump in core net profit to AUD 26.3 million, management expects a double-digit decline in Australian transfer volumes in the next year. Factors such as higher interest rates, weaker consumer sentiment, and potential tax impacts on property turnover are contributing to the concern.

The company's U.K. rollout and PEXA Clear product showed progress, but they are still early-stage contributors. PEXA's FY 2026 results were driven by record transaction volumes, cost savings, and strong operating leverage in its core exchange business. However, the company faces challenges, including a more difficult property market and lower transaction volumes due to economic factors.

The earnings call underscored the disconnect between the company's strong FY 2026 performance and the softer outlook for FY 2027, leading to a sharp decline in PEXA shares following the update.