OFX Group Ltd
ASX:OFX
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OFX Group Ltd
OFX Group Ltd. engages in providing international payment and foreign exchange services. The company is headquartered in Sydney, New South Wales. The company went IPO on 2013-10-11. The firm's business is operated on a cloud-based platform. The firm's segments include North America, the United Kingdom and Asia and International Payment Solutions. The company offers two products: International payment services and International payment solutions. International payment services are monitored by geographic region, which is based on client location and offers bank-to-bank currency transfers servicing businesses and consumers. International payment solutions offer strategic partners a package, which includes OFX information technology (IT) platform; client service; compliance; banking relationships, and payments capabilities. The firm operates in approximately 190 countries in 50 different currencies.
OFX Group Ltd. engages in providing international payment and foreign exchange services. The company is headquartered in Sydney, New South Wales. The company went IPO on 2013-10-11. The firm's business is operated on a cloud-based platform. The firm's segments include North America, the United Kingdom and Asia and International Payment Solutions. The company offers two products: International payment services and International payment solutions. International payment services are monitored by geographic region, which is based on client location and offers bank-to-bank currency transfers servicing businesses and consumers. International payment solutions offer strategic partners a package, which includes OFX information technology (IT) platform; client service; compliance; banking relationships, and payments capabilities. The firm operates in approximately 190 countries in 50 different currencies.
NOI & Profit: Net operating income (NOI) for the half was $105 million, down 5.6% year-on-year and below management's expectations. Underlying EBITDA was $14.5 million, with margins compressed by both softer trading and increased investment.
Margin Pressure: NOI margin was 0.55%, falling 4 basis points mainly due to lower pricing in North America and weaker High-Value Consumer activity. Underlying EBITDA margin sits at roughly 13%, with management focused on top-line growth as the lever for future expansion.
Strategic Investments: Operating expenses rose by 10.2% due to deliberate investments in staff, technology, and marketing to accelerate the OFX 2.0 transition. CapEx guidance for FY26 was lowered to $20–21 million.
Segment Trends: Corporate revenue fell 5.7% versus last year but saw a modest sequential improvement; Enterprise grew strongly (up 47.7% YoY); High-Value Consumer revenue declined 11.3% due to unusually low market volatility.
Non-FX Revenue: Non-FX revenue reached $0.6 million in the half, rebounding sharply in Q2 and on track to reach at least 10% of NOI by FY28.
Client Migration: 39% of existing corporate clients migrated to the new platform in H1 (nearly 60% by early November), with wallet balances and new product adoption exceeding expectations.
Outlook: Management reaffirmed medium-term targets: at least 15% NOI growth and ~30% EBITDA margin by FY28, with higher NOI growth targeted for 2H26 versus 2H25.
Shareholder Concerns: Analysts questioned management on the share price collapse and whether strategic alternatives (like a sale) are being considered; management emphasized its conviction in current strategy and is not pursuing a sale.
