OFX Group Ltd

ASX:OFX

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.