OFX Group Limited

FY26 fee and trading income fell 8.1% to $203.9 million. Net operating income was $196.6 million, down 8.5%, with NOI margin at 51 basis points, around 5 basis points lower than FY25 and 2 basis points lower excluding higher same-currency flows. 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; bad and doubtful debts were $6.3 million. Net cash held for own use was $49.6 million, while net cash held at year-end was $71.6 million and net available cash was $49.6 million after collateral and cash-back guarantees. For FY27, management expects corporate active clients to return to growth, cross-currency ATVs to remain steady, consumer revenue to stabilize, enterprise revenue to keep growing in the teens, operating expenses to be broadly flat aside from normalizing performance costs, and positive operating leverage to return; longer term, it retained its target of 15% NOI growth and underlying EBITDA margins of around 30%.

The CEO framed OFX as moving from a single cross-border payments business to a broader platform that helps corporate clients run more of their financial workflows in one place. He emphasized that the corporate transition is largely complete, that the company is now positioned to grow, and that the new client platform is already driving better product adoption and new client wins. His tone was upbeat but measured, repeatedly noting uncertainty in the macro backdrop and saying the FY28 timing for the medium-term targets is not being specified.

The CFO highlighted that FY26 results reflected softer trading and deliberate investment in OFX 2.0. He cited fee and trading income of $203.9 million, NOI of $196.6 million, underlying EBITDA of $25.2 million, underlying NPAT of $2.3 million, and operating expenses of $171.5 million, with op ex up 9.1% but below the lower end of prior guidance after excluding bad debts the increase was 6.5%. He also pointed to strong cash generation, with operating cash conversion above 100%, net cash held at $71.6 million, net available cash of $49.6 million, and remaining debt of $18 million, while noting performance-related costs should normalize upward in FY27 and bad debts are being actively addressed.

Analysts focused first on the strategic review, asking how many credible parties remain; management would only say there are still multiple credible parties. Questions on AI centered on whether it is being used internally or exposed to clients: management said AI is already helping onboarding by automating KYC/data collection, and client-facing agents are being tested but must be ‘industrial strength’ before launch. The analyst also asked about the timing of the medium-term margin and growth goals, and management said it still wants to achieve them but would not firmly specify FY28 because of economic uncertainty.