OFX Analysis: OFX Group Ltd 1H FY26 Results

Event: OFX Group Ltd 1H FY26 Results | Date: 2025-11-11 | Source: ASX Announcements

1H FY26 Results: Migration Weighs on Clients and Margins

OFX released its 1H FY26 results on 11 November 2025, reporting Net Operating Income (NOI) of $105.0m, down 6.3% from $112.0m in 1H FY25, with EBITDA falling 47% to $13.8m and EBITDA margin compressing to 13.2% from 23.4%. Active Clients declined 7.3% year-on-year to 31,000, attributed primarily to NCP platform migration friction, while average transaction value (ATV) dropped 9.1% quarter-on-quarter to $27.5k amid macro headwinds. Bad debt provisions remained elevated at $3.2m (3.0% of NOI), with management noting ongoing recoveries from North American incidents, and capex reached $10m as NCP migration progressed to 39% global completion (71% in Australia). Management reaffirmed 2H FY26 NOI growth on prior corresponding period, targeting NOI above $103.7m, and maintained long-term aspirations for 15% revenue growth and 30% EBITDA margins, with no changes to FY26 guidance. Source: OFX 1H FY26 Results Announcement.

The results highlighted ongoing transformation costs, with sales and marketing up 9.5% to $17.5m (16.7% of NOI) to support client migration, while technology and operations costs held steady at $29m despite revenue decline. No dividend was declared, consistent with the investment phase, and net cash position strengthened slightly to $56.9m.