REA Group delivered strong full year results for FY26, with revenue growing 12% to $1,793 million and EBITDA expanding 15% to $1,088 million. Net profit after tax increased 17% to $650 million, demonstrating the company’s ability to convert revenue growth into earnings expansion. This performance reflects the diversity and quality of REA Group’s digital property platform across Australia, with leading positions in residential and commercial real estate advertising, mortgage broking, property data services, and emerging fintech solutions.
The reported results include India as a discontinued operation, which impacts the headline figures and warrants attention from investors seeking to understand the group’s strategic evolution. Excluding India, revenue grew 12% to $1,730 million while EBITDA expanded 12% to $1,121 million, with operating EBITDA margin reaching 65%. This margin profile is exceptional and reflects the high-quality nature of REA Group’s core Australian and international platforms. The group’s earnings per share of $2.97 (or $5.17 excluding India with growth of 14%) underscores the operational leverage embedded in the business model once revenue scale is achieved across its diverse suite of property-focused services.
Free cash flow declined 19% to $628 million on a reported basis, though this masks stronger underlying cash generation of $676 million, or 18% growth, when India is excluded. The distinction between reported and excluding-India figures is critical, as it signals a material cleanup of the portfolio and a refocus on higher-quality, more profitable assets. This strategic realignment, combined with a strong cash position, has enabled REA Group to return substantial capital to shareholders. The company declared a full year dividend of $4.93 per share and successfully completed a $200 million on-market share buyback that purchased over 1.25 million shares, reflecting management confidence in the group’s intrinsic value and commitment to shareholder returns.
Looking ahead, investors should monitor how the discontinuation of India reshapes the growth trajectory and margin profile of the business. The announcement indicates REA Group is evolving its focus around three shared enterprise missions while serving both consumers and customers within the property ecosystem. The strategic clarity around consumer platforms, growth engines, and organizational acceleration should clarify the capital allocation priorities and drive future earnings accretion. Key watch points include the execution of these enterprise missions, the performance of high-margin Australian operations, and whether further portfolio rationalization or consolidation opportunities emerge in the fintech and property services segments. This announcement is classified as price sensitive by the ASX and constitutes material information for investors.
View the full ASX announcement (PDF)
About REA Group Limited (ASX: REA)
REA Group operates realestate.com.au, Australia’s leading property platform, connecting buyers, sellers, and renters. It also has property portal operations in India and other markets.
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