Pexa Group (ASX:PXA) has released its first-quarter update for FY25. Total transaction volumes processed by Pexa’s flagship Exchange platform reached 999,000, marking a 3% increase from the prior corresponding period.
Pexa operates a digital platform that automates and streamlines 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 settlements and now handles 90% of all property transfer settlements in Australia. The company also provides data analytics and insights to the real estate sector, enhancing 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 FY25. However, we note the uncertainties arising from the mixed outlook for the performance of the Australian and UK economies and property markets over the remainder of FY25,” said Glenn King, Group Managing Director and CEO.
A key highlight was the 14% increase in higher-value property transfer volumes, signalling a modest recovery in the Australian housing market. However, the company noted a 21% drop in refinance volumes from their peak, continuing a downward trend from previous quarters. This decline in refinance activity may signal potential challenges in maintaining certain transaction volumes, contributing to market concerns about revenue growth sustainability.
Internationally, Pexa’s expansion into the UK showed encouraging growth. The company’s legal services unit, Optima Legal, recorded a 2,000 increase in remortgage completions compared to 1Q24, lifting its market share to 16% by August 2024. Smoove, another Pexa division, posted a 17% rise in sale and purchase completions over 1Q24.
Pexa’s FY25 guidance anticipates a 13-19% increase in group revenue and an operating EBITDA margin of at least 34%.
Shares are trading 2.26% lower at $13.43.