PEXA posts $76m loss on tech impairments, revenue climbs 16%
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The news: Electronic property settlement giant PEXA has reported a full-year statutory net loss after tax of $76.1 million, a 323% larger loss than in FY24.
PEXA has faced impairments, including on technology development towards making its network interoperable with others.
The numbers: In FY24, PEXA posted a $18 million loss. The market consensus estimate for NPAT was for a $52 million loss.
Meanwhile, full-year group revenue came in at $393.6 million, which is 16% higher than the $340.1 million reported in the previous year.
No dividend was declared, which was in line with the previous year and market expectations.
For FY26, PEXA is guiding group revenue of between $405 million and $430 million and group NPAT of between $5 million and $15 million.
Group capital expenditure is expected to increase from $58 million in FY25 to the range of between $60 million and $65 million.
The context: PEXA's revenue increased over the year, driven by single digit revenue growth for its exchange business and the double-digit revenue growth in its international and digital solutions arm.
However, the company attributed its full-year loss to non-cash impairments from changing market conditions, a strategic review of its digital solutions and its interoperability assets becoming outdated, as flagged earlier in the year.
The program to make PEXA's system interoperable with other networks in Australia was paused in late June 2024.
It also captures the end of recognising of some deferred tax assets in Australia.
According to PEXA CEO and group managing director "the Exchange in Australia now has 90% market coverage, and in the UK our product suite is ready for launch in early FY26".
The source: ASX
