Pexa Group (ASX:PXA) has released its Q1 update for FY25. The total volume of transactions processed by Pexa’s flagship Exchange platform reached 999,000, marking an increase of 3% compared to the previous corresponding period.
Pexa operates a digital platform that automates and simplifies property exchange and settlement processes, making real estate transactions more efficient and secure. Since its launch in 2013, Pexa has processed over 20 million property transactions and now handles 90% of all property transfer transactions in Australia. The company also provides data analytics and insights to the real estate industry, improving decision-making for stakeholders.
“Trading for 1Q25 was generally in line with our expectations. Given this and the progress we are making, we reaffirm our guidance for fiscal 2025. However, we note uncertainties arising from the contrasting outlook for the performance of the Australian and UK economies and property markets for the remainder of fiscal 25 ,” said Glenn King, managing director and CEO of the group.
One highlight was a 14% increase in higher-value property transfer volumes, signaling a modest recovery in the Australian property market. However, the company noted a 21% decline in refinance volumes from the peak, continuing a downward trend from prior quarters. This decline in refinancing activity could signal potential challenges in maintaining certain transaction volumes, contributing to market concerns about the sustainability of revenue growth.
Internationally, Pexa’s expansion into the UK has shown encouraging growth. The company’s legal services unit, Optima Legal, reported an increase of 2,000 remortgage completions compared to 1Q24, bringing its market share to 16% by August 2024. Smoove, another division of Pexa, recorded a 17% increase in sales and purchase completions compared to 1Q24.
Pexa’s guidance for fiscal 2025 calls for a 13-19% increase in group revenues and an operating EBITDA margin of at least 34%.
Shares are trading 2.26% lower at $13.43.