OFX Group (OFX) H2 2025 earnings summary

Executive summary

• Fiscal year 2025 results showed declines in revenue and net operating income due to weak business confidence, political instability, and tariff threats, especially impacting SMEs.

• Underlying EBITDA was $57.7M, down 10.7% year-over-year, with margins softening but strong cash generation and disciplined cost control maintained.

• Net cash held at $77.2M after $24M in debt repayment and a $13.7M share buyback.

• Strategic transformation through OFX 2.0 and investments in platform innovation and NCP rollout are underway, with accelerated product launches and integration milestones.

Financial highlights

• FY25 revenue was $221.9M, down 3.4% year-over-year; net operating income was $214.9M, down 5.5%.

• Underlying EBITDA was $57.7M, down 10.7%, with a margin of 26.8%.

• Statutory net profit after tax was $24.9M, down 20.6% year-over-year.

• NOI margin was 0.56%, down 3bps; operating cash conversion exceeded 90%.

• Bad and doubtful debts dropped 42.7% to $2.1M.

Outlook and guidance

• No specific FY26 NOI guidance due to ongoing macroeconomic uncertainty and global tariff impacts.

• FY26–FY27 will focus on accelerated NCP rollout and go-to-market strategy, with increased opex and intangibles investment, precluding operating leverage.

• Long-term targets include 15%+ NOI annual growth and ~30% EBITDA margin by FY28, with confidence in non-FX revenue growth.