OFX Group Limited

FY26 fee and trading income was $203.9 million, down 8.1%. Net operating income was $196.6 million, down 8.5% versus the prior period, and NOI margin was 51 basis points, around 5 basis points lower than FY25. Underlying EBITDA was $25.2 million versus $57.7 million in FY25; underlying NPAT was $2.3 million and statutory loss was $0.4 million. Underlying operating expenses rose 9.1% to $171.5 million. Net cash held for own use was $49.6 million; net cash held at year-end was $71.6 million, with remaining debt at $18 million. Forward-looking guidance: management expects corporate active clients to grow in FY27, cross-currency ATVs to remain steady, consumer revenue to stabilize as attention shifts back to the segment, enterprise revenue to continue growing in the teens, operating expenses to be broadly flat aside from normalization of performance costs/commissions, and capex to be managed tightly. It reiterated a medium-term target of 15% NOI growth and around 30% underlying EBITDA margins, without pinning that to FY28 because of macro uncertainty.

The CEO framed OFX as moving from a single-purpose cross-border payments business to a broader platform for corporate financial operations, with consumer as the next rollout by year-end. He repeatedly emphasized that the corporate migration to the new platform was done on time, on budget, and with most clients and revenue retained, calling it the best platform build and client migration he has seen in 30-plus years. His tone was upbeat on the strategic direction but cautious on timing, especially given uncertainty around the economy and the still-open strategic review.

The CFO focused on the impact of softer trading and investment spending on FY26 results. He cited fee and trading income of $203.9 million, NOI of $196.6 million, underlying EBITDA of $25.2 million, and operating expenses of $171.5 million, while also noting operating cash conversion above 100% and net available cash of $49.6 million after collateral and guarantees. He said the forward book was down about 15% as clients stayed cautious, bad and doubtful debts were $6.3 million, and performance-related costs were lower because revenue underperformed; he expects those costs to normalize in FY27, with overall expenses broadly flat apart from inflation and the rebasing of incentives.

Analysts focused on three main issues: the strategic review, the role of AI, and the timing of longer-term growth targets. Management said there are still multiple credible parties in the strategic review, but would not give details because the process is sensitive. On AI, the CEO said AI is already helping onboarding through automated KYC/data gathering and that client-facing AI agents are being tested for workflow automation, FX hedging, and invoice timing, though they need to be 'industrial strength' before rollout. He also said enterprise revenue should remain in the teens rather than accelerating beyond the mid-teens, and that FY28 is not being specifically confirmed because macro conditions are too uncertain.