REA Group FY26 Core Net Profit $650m, Up 15%

REA Group (ASX:REA) reported its results for the year ended 30 June 2026. From core operations, revenue was $1,793 million, up 7% on the prior year, with Australian revenue up 11% to $1,712 million. Group operating expenses of $705 million were flat on the prior year, while EBITDA excluding associates rose 12% to $1,088 million and net profit from core operations attributable to owners of the parent rose 15% to $650 million, with earnings per share of $4.93, also up 15%. Reported net profit of $552 million decreased 19%, which the company said largely reflected the $111 million impairment of REA India in FY26 and the $117 million reversal of impairment on the sale of PropertyGuru in FY25. Free cash flow increased 17%. Residential revenue increased 12% to $1,290 million, driven by a 13% increase in Buy yield with national listings flat; Commercial and New Homes revenue increased 9% to $238 million and Financial Services revenue increased 11% to $114 million.

The Board determined a final dividend of $1.73 per share fully franked, an increase of 25%, taking full year dividends to $2.97 per share, up 20%. REA said its $200 million on-market share buy-back announced on 6 February has been executed, with 1,257,405 shares acquired, and that it had no external drawn debt and a cash balance of $366 million at 30 June 2026. In North America, Move, Inc. revenue increased 11% to US$610 million and the equity accounted loss on REA's 20% stake narrowed to $14 million from $19 million; Planitar Inc, the maker of iGUIDE, consolidated from 1 October 2025, generated revenue of $18 million. REA acquired a 70% controlling stake in commercial lending brokerage Simplicity Loans & Advisory for $47 million on 5 June 2026, and REA India has announced the sale of Housing.com to Aurum PropTech Limited, with REA India to hold a 24.9% stake in Aurum post completion, subject to customary conditions including Aurum shareholder approval. For FY27, REA anticipates new national Buy listings to be flat to down low single-digits, noting July listings were 2% lower on the prior corresponding period, and expects low double-digit controllable Residential Buy yield growth, excluding the impact of geographical mix, driven by an 8% Premiere+ price rise and growth in add-ons. Including M&A, group operating costs are expected to increase mid to high single-digits off a base of $609 million in FY26, being the continuing operations base that excludes India.