PEXA Group (PXA) H2 2024 earnings summary

Executive summary

• Group revenue rose 21% to $340.1m, with operating EBITDA up 16% to $114.9m and NPATA up 22% to $21.1m compared to FY23, driven by revenue growth, cost and CapEx management, and operational improvements.

• Free cash flow increased to $38.5m, and the group achieved a 54.5% exchange margin.

• Non-exchange revenue now represents 15% of total revenues, reflecting successful diversification since IPO.

• Strategic position improved with strong digital infrastructure, deeper customer relationships, and business scaling; Digital Solutions reached operating EBITDA break-even in June 2024.

• CEO announced intention to retire by end of FY 2025, with succession planning underway.

Financial highlights

• Statutory revenue grew 21% year-over-year to $340.1m; operating EBITDA margin was 33.5%.

• Free cash flow increased by 175% to $38.5 million; cash balance at period end was AUD 90.5 million.

• Net debt/operating EBITDA improved to 2.4x, with $10m debt repaid in 2H24.

• CapEx remained flat at around AUD 69 million; capex to business revenue ratio improved to 20.0%.

• Operating cashflow yield increased to 13.4% from 11.0% year-over-year.

Outlook and guidance

• FY25 group revenue expected to grow 13–19%, with group margin above 34%.

• Net interest expense to remain broadly aligned with FY24; international cash outflow to fall to AUD 55–58 million.

• Effective tax rate to remain elevated due to Australian profits and conservative tax treatment of UK losses.

• Focus on sustainable growth, operational efficiency, and capital-light mechanisms for expansion; no material acquisitions planned.

• Specified items forecast at $15–20m, depreciation/amortisation at $98–102m.