OFX Group (OFX) H1 2025 earnings summary

Executive summary

• H1 2025 results were below expectations due to delayed macroeconomic improvements, with net operating income (NOI) at $111.2m, down 3.5%, and underlying EBITDA at $29.0m, down 8.8% year-over-year.

• Net profit after tax was $10.7m, down 32.3%, impacted by a $2.2m non-cash fair value loss on Paytron contingent consideration and absence of a prior year $3.7m escrow release.

• Strategic pivots to B2B, global expansion, and platform rollout drove a three-year CAGR in NOI of 17.4% and underlying EBITDA of 12.7%.

• Corporate and enterprise segments showed growth, with new platform adoption accelerating non-FX revenue.

• No dividends were paid; a share buyback program continued, with $3.3m spent to repurchase shares.

Financial highlights

• Fee and trading income was $114.5m, flat year-over-year; NOI margin was 0.60%, flat versus H1 2024 (excluding one-off escrow payment).

• Underlying operating expenses were $82.1m, down 1.4% year-over-year, with employee expenses down 1.7% and promotional expenses down 4.1%.

• Statutory EBITDA was $25.7m, down from $30.7m in the prior year; underlying EBITDA margin at 26.1%.

• Net cash held at $74.7m at period end, with net available cash at $45.9m, reflecting share buyback and debt repayment.

• Bad and doubtful debts were down 41.7% and less than 0.6% of revenue.

Outlook and guidance

• Fiscal year 2025 NOI expected to be stronger in H2 than H1, with a full-year EBITDA margin target of 28%.

• Medium-term NOI annual growth target of 10%+ and long-term target of 15%+; EBITDA margin expected to improve to 28-30% medium term and ~30% long term.

• Focus on accelerating non-FX product growth and platform adoption, with further international expansion planned.

• Medium-term guidance will be updated with FY25 results after assessing New Client Platform performance.

• Additional $1m investment committed to accelerate New Client Platform rollout in Australia, Canada, and the UK.