PEXA Group Limited

Thank you. Good morning and thank you for joining us for PEX's 2026 full-year results briefing.

I'm joined today by PEX's CEO and Group Managing Director, Russell Cohen, and Interim CFO, Liz Worrell, who will discuss the Group's performance for financial year-ended 30 June 2026. At the end of the presentation, we'll open up to questions. Before we begin, we acknowledge the traditional custodians of the land on which we meet today and pay our respects to elders past and present. I'll now hand over to Russell.

Good morning, everyone, and thank you for joining us today as we share our full year results. As usual, I'll start by taking you through our FY26 highlights. Following that, I'll hand over to Liz, who will walk you through our financial results for the year in more detail. We'll wrap up by discussing our FY27 strategy and key focus points and providing you with our FY27 guidance. At the end of our presentation, we'll be very happy to take any questions. Turning now to page four, I'm incredibly proud of our team for the performance we've delivered this financial year. We implemented significant cost efficiency measures in September last year in Australia, which together with record Australian transaction volumes in Q2, drove strong operating leverage and EBITDA margin expansion. In the UK, we were pleased to deliver NatWest remortgage implementation three months ahead of schedule. Following Go Live in late March of this year, NatWest is fully functional on the PEXA UK platform. As most of you are aware, the impact of our Australian regulatory environment was mixed this year. In March, ARNIC decided to conclude the interoperability program, and on the same day, IPART released its proposed pricing methodology as part of its review of PEXA's service fees. Following this, in July of 2026, IPART released its draft report, and I'll go into this in more detail shortly. Lastly, we executed well against our strategic priorities by focusing on our core business and customer groups. We completed the strategic review of our digital solutions segment and have now substantially exited the portfolio. We launched our AML solution, PECSA Clear, to help real estate agents and conveyances meet the new AML CTF requirements which commenced in July of 2026. We're also in the final stages of preparations for the launch of a pilot in New Zealand, which will commence later this calendar year. Moving on now to our financial snapshot on page five. The results on this reflect the result from continuing operations. Financial Year 26 was a strong year for PEXA, with group revenue exceeding $400 million for the first time, up 7% on FY25. Our EBITDA increased by 12% and our EBITDA margin expanded to 37.3%, reflecting strong operating leverage as well as savings from our cost efficiency programs and continued cost discipline. Our net profit after tax, adjusted for acquired amortisation, increased 35%, excluding significant and non-recurring items. Statutory NPAT from continuing operations returned to a profit of $19.2 million, compared with a loss of $65.6 million in FY25. The Australian exchange continued to demonstrate excellent cash generation, with free cash flow up 39%. Overall, these results demonstrate strong underlying earnings growth and the continued improvement in the quality of our financial performance and execution. Turning to page six, I'll now take you through the performance of each of our businesses, starting with Australia. FY26 was a strong year for the business, with revenue growth supported by record transaction volumes, particularly in December. The second half volumes remained relatively resilient. We saw changes in market sentiment impacting volumes in July 2026, which Liz will come back to later in the presentation. Operationally, we now serve customers in every state and territory in Australia. We launched remortgages in the Northern Territory in August 2025 and continue to build traction in Tasmania. We're also pleased to see digitization advance in Tasmania with the removal of the paper title requirement from the 1st of September, 2026. And we are grateful to the Land Registry and other industry stakeholders who have collaborated to bring e-conveyancing to the state. We also continue to invest in Australia with $35 million in CapEx directed towards strengthening platform security, reliability, and resilience, enhancing our customers' experience, as well as developing PECs are clear. Turning to page 7, as most of you would know, PEXA operates in a highly regulated environment. We are required to meet stringent service standards and maintain a comprehensive compliance regime of consumer protections, most notably our regulated exchange pricing, which has not increased by more than CPI since 2014. Financial Year 26 was a year of significant regulatory activity and scrutiny. We participated in federal and state inquiries into e-conveyancing, which enabled us and other industry participants to share our view on significant industry issues. One significant development during the year was the conclusion of the Interoperability Program. Following the release in December of two independent reports commissioned by ARNIC, they decided not to proceed with the Interoperability Program as it was originally conceived. On the same day that decision was announced, IPART released its proposed methodology for its regular review of PEX's exchange service fees. In July, IPART released its draft report recommending a 20% reduction in our regulated revenue from FY28, followed by CPI increases thereafter. As I said earlier, we strongly disagree with both the methodology and a number of the inputs IPART has used to arrive at their recommendation. So let's turn to the next slide and give you some additional colour on why we believe substantial changes are warranted to IPART's draft approach. The charts on this page come directly from our submission to IPART in their response to their draft report. To support our own submission, we commissioned independent analysis from RBB Economics and four leading academics. You can read all of these materials on our investor relations website. Starting with chart one on the top left, we share eight alternative approaches to assessing PEXA's initial asset base. This asset base is the primary driver of the proposed revenue reduction of 20%. Starting from the top of this chart, we have three views from expert economists. We also have the PEXA 2019 trade sale price rolled forward to adjust for inflation. We just show the PEXA asset base consistent with how the tax office recognises the asset base. We show an extension of IPART's own 2019 review of our prices. We show PEXA's asset base valued using the original investor risk premium. And lastly, we show PEXA's view, our calculation of the initial asset base, with a series of what we believe are more appropriate inputs. Looking at this chart, two things stand out. First, the outcome under a building block methodology is highly dependent on the assumptions and inputs used. Relatively small changes in those inputs can have a very significant impact on the resulting asset base, such as the early rate of return, the useful asset lives, and the year of commencement of depreciation. Second, each one of the eight alternative approaches produces an initial asset base materially above IPART's draft calculations. These divergences are significant and, in our view, need to be reconciled before such a substantial change to our pricing is made. Chart 2 helps explain why we believe the methodology itself is a poor fit for PEXA. PEXA has a different mix of capital and operating expenditure compared to a traditional physical infrastructure business. As you can see from the table, a traditional physical infrastructure business spends between 49% and 69% of its total expenditure on capital. Conversely, only 17% of PEX's 2025 total expenditure was capital. This would result in PEXA realising a significantly lower return on its total expenditure throughout the life of the asset compared to a physical asset. If IPART ultimately determines that a building block model should be retained, we have identified a number of material issues with the inputs it has used. As Chart 3 demonstrates, correcting those inputs would increase PEX's initial asset base to about to between approximately 1.6 and 3.5 times IPART's draft assessment. Chart 4 provides another useful perspective. It compares the EBIT margins of the PEXA exchange with a range of comparable businesses. This chart shows that PEXA's EBIT margins are comparable and in many cases lower than other familiar platform businesses in Australia. More importantly, we need to consider what this methodology means over the longer term. Our submission to IPART includes a hypothetical cash flow scenario using IPART's methodology and assumptions. If that framework were maintained beyond the current regulatory period with all other factors held constant and no management intervention, the modelling shows PEXA becoming cash flow negative within the next decade. Clearly, that cannot be a sustainable long-term regulatory outcome and we don't believe this is what IPART intended. PEXA Exchange is designated national critical infrastructure in Australia and requires continued investment to remain secure, resilient and current. A significant fee reduction could compromise this critical Australian asset. We do not believe IPART intends to create an outcome that compromises the security and resiliency of e-conveyancing. We therefore believe there is a strong case for IPART to reconsider both the methodology and its key inputs ahead of the final report. Turning now to page nine, let's focus on PECSA Clear. This is a natural extension of our capabilities in Australia and a good example of the growth opportunities available to us outside the regulated exchange. PECSA Clear is our end-to-end AML CTF compliance solution developed to help real estate agents, conveyances and legal practitioners meet the new obligations that commenced on the 1st of July, 2026. We've deliberately kept the pricing model simple and transparent with no subscription fees or ongoing commitments. customers pay only when they use the service. This pay-as-you-go model lowers the barrier to adoption, particularly for smaller real estate agencies and conveyancing practices, and allows customers to scale their use of PECSA Clear in line with their transaction volumes. While it is still early days, we've been encouraged by the strong interest in PECSA Clear from real estate agents, which is a new customer segment for PECSA in Australia. We expect revenue growth in FY27 to be modest as we build adoption and continue to develop the product. Over time, we believe Pexacly represents an attractive opportunity to solve a genuine customer need and extend our role across the broader property transaction ecosystem. Turning to page 10, we'll move on to our international segment, which currently is represented by our UK business. As I mentioned earlier, we made important progress with NatWest during the year, delivering remortgage capability ahead of schedule and successfully scaling volumes following launch. I want to focus here on what this progress means for the broader UK opportunity. The successful NatWest implementation has demonstrated our platform operating successfully with a major UK lender and provided a proof point as we engage with other lenders and conveyances. At the same time, we're seeing growing momentum across the government and industry to improve the UK home buying and selling process. That reform agenda is increasing the focus among lenders on modernising transaction processes and strengthening the case for PEX's proposition. Customer satisfaction has been high, providing further validation of the platform as we focus on driving broad industry adoption. While we would have liked lender adoption of our UK platform to progress more quickly, we've established some important foundations. The technology is built and operational. NatWest is live and we have received positive feedback from customers using the platform. With refreshed UK leadership, we are now adjusting our approach to place greater emphasis on our technology strength and execution quality. This includes working more closely with lenders and conveyances to identify and remove practical barriers to adoption and using our expertise to support the changes occurring across the UK property market as government and industry work together to improve the home buying and selling process. Turning now to page 10, we've spoken previously with you about the measured exploration of New Zealand as a potential growth opportunity. We've also been clear with shareholders about the criteria we will apply to any new market entry. This entry should be capital light. It should be de-risked through local partnerships wherever possible and supported by a regulatory environment conducive to digitization. New Zealand meets those criteria. We are now in the final stages of preparing for a phased pilot. Phase one will focus on the purchaser's bank and solicitor. During the pilot, we'll test a defined set of AI-enabled capabilities, including simplifying document review, preparing and executing electronic signatures, and automating communications throughout the workflow. This initial phase does not include lodgement or financial settlement. However, we have formulated the high-level solutions and partnerships should we progress past our pilot. We have deliberately structured the pilot this way to test the proposition and validate customer and industry demand before committing significant capital. We expect to be in a position to update the market on our progress at our first half 27 results in February. I will now hand over to Liz for a review of our financial results.