OFX Group Ltd. (OFX) AI Stock Analysis

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OFX Group Ltd.

(Sydney:OFX)

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Neutral 60 (OpenAI - 4o)

Rating:60Neutral

Price Target:

AU$0.50

▼(-18.03% Downside)

OFX Group Ltd.'s overall stock score is driven by its strong financial performance and attractive valuation, suggesting potential for future growth. However, bearish technical indicators and challenges highlighted in the earnings call, such as declining financial performance and increased expenses, temper the outlook. Investors should be cautious and consider the company's strategic direction and market conditions.

Positive Factors

Enterprise Segment Growth

The significant growth in the enterprise segment indicates a strong market position and potential for sustained revenue expansion, enhancing long-term business prospects.

Non-FX Revenue Growth

Diversification into non-FX revenue streams supports resilience against market volatility and aligns with strategic goals for revenue composition by fiscal year 2028.

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility to invest in growth opportunities, supporting long-term strategic initiatives.

Negative Factors

Decline in Corporate Revenue

A decline in corporate revenue signals potential challenges in maintaining market share and could impact future revenue growth if not addressed strategically.

Increased Operating Expenses

Rising operating expenses, driven by strategic investments, may pressure profit margins if revenue growth does not offset these costs, impacting long-term profitability.

Macro Environment Challenges

External macroeconomic challenges can hinder client activity and transaction volumes, potentially affecting revenue stability and growth prospects in the medium term.

OFX Group Ltd. (OFX) vs. iShares MSCI Australia ETF (EWA)

Market Cap

AU$136.71M

Dividend YieldN/A

Average Volume (3M)815.94K

Price to Earnings (P/E)5.6

Beta (1Y)0.68

Revenue Growth-5.73%

EPS Growth-36.36%

CountryAU

Employees690

SectorFinancial

Sector Strength70

IndustryFinancial - Capital Markets

Share Statistics

EPS (TTM)0.01

Shares Outstanding231,709,690

10 Day Avg. Volume331,586

30 Day Avg. Volume815,939

Financial Highlights & Ratios

PEG Ratio-0.47

Price to Book (P/B)1.48

Price to Sales (P/S)32.16

P/FCF Ratio5.12

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

AU$0.90

Price Target Upside47.54% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

OFX Group Ltd. Business Overview & Revenue Model

Company DescriptionOFX Group Limited provides international payments and foreign exchange services. It offers international payment services, such as bank to bank currency transfer services to businesses and consumers. The company also provides international payment solutions, including OFX IT platform; client service; compliance; banking relationships; and payments services. It operates in the Asia Pacific, Europe, the Middle East, Africa, North America, and internationally. The company was formerly known as OzForex Group Limited and changed its name to OFX Group Limited in September 2016. OFX Group Limited was founded in 1998 and is headquartered in Sydney, Australia.

How the Company Makes MoneyOFX generates revenue primarily through transaction fees and foreign exchange spreads. The company charges customers a fee for transferring money internationally, which varies based on the transaction amount and destination. Additionally, OFX earns money from the difference between the wholesale exchange rate it receives from liquidity providers and the rate it offers to customers, known as the spread. This dual revenue model allows OFX to benefit from both volume and margin on transactions. Significant partnerships with banks and financial institutions enhance its capabilities and market reach, contributing to its overall earnings. Furthermore, the company may also explore additional revenue streams through value-added services, such as risk management tools for businesses engaged in international trade.

OFX Group Ltd. Earnings Call Summary

Earnings Call Date:Nov 10, 2025

(Q2-2026)

% Change Since: |

Next Earnings Date:May 25, 2026

Earnings Call Sentiment Neutral

The earnings call reflects a challenging period for OFX Group Limited, characterized by declining financial performance, increased expenses, and a difficult macroeconomic environment affecting client confidence. Despite these challenges, there are positive developments such as strong growth in the enterprise segment, increased client engagement, and progress in non-FX revenue and client migration. However, the balance of highlights and lowlights suggests a need for caution and strategic reassessment.

Q2-2026 Updates

Positive Updates

Enterprise Segment Growth

Enterprise revenue grew strongly, up 47.7% versus the prior corresponding period (PCP) and 27.5% versus the second half of '25.

Engagement and Transactions

Transactions were up 5.7% on the prior corresponding period, with transactions per active client growing for the third quarter in a row, achieving a healthy CAGR of 11% since fiscal year '24.

Non-FX Revenue Growth

Non-FX revenue showed positive signs, growing by 23.8% quarter-on-quarter, supporting the target of non-FX revenue contributing 10% to NOI by fiscal year '28.

Successful Client Migration

Almost 60% of corporate clients have been successfully migrated to the new platform, with positive feedback on client experience and technical execution.

Negative Updates

Disappointing Financial Performance

Net operating income (NOI) was $105 million, down 5.6% versus PCP, and underlying EBITDA was $14.5 million, a disappointing outcome below expectations.

Decline in Corporate Revenue

Corporate revenue was down 5.7% versus PCP, despite a 2.3% increase compared to the second half of '25.

High-Value Consumer Segment Decline

Revenue in the High-Value Consumer segment fell 11.3% versus PCP and 8.7% versus the second half of '25, primarily due to low market volatility.

Increased Operating Expenses

Underlying operating expenses increased by 10.2% to $90.5 million, driven by investments in the OFX 2.0 transition and higher employment and promotional costs.

Macro Environment Challenges

A difficult macro environment has affected corporate client confidence, resulting in a 9% reduction in average transaction value (ATV) from the first to the second quarter.

Loss of Shareholder Value

The company has faced a significant loss of shareholder value, with a $400 million decrease in market capitalization over 14 months, raising concerns about its strategic direction.

Company Guidance

In the recent earnings call for OFX Group Limited, CEO Skander Malcolm outlined the company's strategic focus and financial targets. The company aims for a 15% net operating income (NOI) growth by fiscal year 2028, with underlying EBITDA margins of approximately 30%. OFX has expanded its total addressable market (TAM) from USD 34 billion to USD 66 billion by broadening its service offerings beyond cross-border payments, particularly targeting small and medium-sized enterprises (SMEs) traditionally served by banks. The first half of fiscal year 2026 saw an NOI of $105 million and an underlying EBITDA of $14.5 million, reflecting a challenging macroeconomic environment. Despite a decline in corporate revenue, there was significant growth in the enterprise segment, up 47.7% from the prior corresponding period. The company is investing in its transition to OFX 2.0, targeting non-FX revenue to contribute at least 10% to NOI by fiscal year 2028. Although the company reported a disappointing performance in the first half, it remains committed to its growth strategy, supported by a strong balance sheet with net cash of $75.4 million.

OFX Group Ltd. Financial Statement Overview

Summary

OFX Group Ltd. demonstrates strong financial performance with a solid balance sheet, low debt-to-equity ratio, and robust profitability margins. Despite a slight decline in net profit margin, the company shows positive revenue growth and healthy cash flow generation, positioning it well for future growth.

Income Statement

Positive

OFX Group Ltd. has demonstrated a strong gross profit margin with consistent improvement in revenues and profits over the years. The net profit margin shows a slight decline in the most recent year, which may indicate rising costs or operational challenges. However, the company's EBIT and EBITDA margins indicate healthy profitability levels. The revenue growth rate over the analyzed period shows a positive trajectory, boosting the overall income statement score.

Balance Sheet

Positive

The company's balance sheet is solid, characterized by a low debt-to-equity ratio, indicating strong financial stability and low leverage risk. The return on equity (ROE) is robust, demonstrating efficient use of equity to generate profits. The equity ratio also reflects a healthy balance between assets and equity, signifying a well-capitalized company. This strong balance sheet position enhances the company's ability to withstand market fluctuations.

Cash Flow

Neutral

OFX Group Ltd. has shown a significant improvement in its free cash flow, reflecting strong cash generation capabilities. However, the operating cash flow to net income ratio suggests some variability, potentially indicating fluctuations in operational efficiency. Despite this, the free cash flow to net income ratio is favorable, underscoring the company's ability to convert its earnings into cash effectively.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	231.37M	8.34M	242.74M	228.86M	158.42M	134.69M
Gross Profit	214.91M	3.64M	227.51M	200.92M	137.06M	106.82M
EBITDA	32.43M	55.48M	64.56M	62.43M	44.50M	29.07M
Net Income	24.86M	24.86M	31.30M	31.41M	24.46M	12.78M
Balance Sheet
Total Assets	566.91M	566.91M	569.50M	680.85M	408.70M	378.04M
Cash, Cash Equivalents and Short-Term Investments	360.59M	360.59M	88.01M	93.80M	327.01M	60.57M
Total Debt	32.93M	32.93M	56.38M	79.14M	8.35M	17.30M
Total Liabilities	385.08M	385.08M	399.86M	536.74M	304.80M	297.75M
Stockholders Equity	181.82M	181.82M	169.64M	144.11M	103.89M	80.29M
Cash Flow
Free Cash Flow	71.32M	52.41M	-43.23M	152.05M	37.08M	52.23M
Operating Cash Flow	72.53M	72.53M	-18.64M	172.92M	48.55M	61.35M
Investing Cash Flow	-45.10M	-45.10M	-16.76M	-94.96M	-15.66M	-3.96M
Financing Cash Flow	-43.66M	-43.66M	-43.26M	58.03M	-6.17M	-12.77M

OFX Group Ltd. Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price0.61

Price Trends

50DMA

0.72

Negative

100DMA

0.77

Negative

200DMA

0.89

Negative

Market Momentum

MACD

-0.03

Negative

RSI

43.27

Neutral

STOCH

75.56

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OFX, the sentiment is Neutral. The current price of 0.61 is above the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.72, and below the 200-day MA of 0.89, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.27 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:OFX.

OFX Group Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OFX	60 Neutral	AU$136.71M	5.64	9.31%	―	-5.73%	-36.36%
COG	55 Neutral	AU$489.39M	24.55	12.36%	2.79%	-26.30%	40.12%
RZI	53 Neutral	€99.07M	-151.61	-0.15%	―	5.03%	52.31%
PPS	50 Neutral	AU$430.58M	31.80	12.27%	2.62%	24.56%	59.32%

* Financial Sector Average

Performance Comparison

AU:OFX

OFX Group Ltd.

0.61

-0.77

-55.80%

AU:RZI

Raiz Invest Ltd.

0.86

0.41

92.13%

AU:PPS

Praemium Ltd

0.86

0.16

22.86%

AU:COG

COG Financial Services Limited

2.15

1.29

150.00%

OFX Group Ltd. Corporate Events

OFX Group Director Increases Shareholding

Nov 13, 2025

OFX Group Limited has announced a change in the director’s interest, specifically regarding Robert Bazzani, who has increased his indirect interest in the company through an on-market trade. The transaction involved the acquisition of 52,500 ordinary fully paid securities, raising his total holdings to 84,285 shares. This change reflects a strategic decision by the director, potentially indicating confidence in the company’s future performance and impacting stakeholder perceptions.

The most recent analyst rating on (AU:OFX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on OFX Group Ltd. stock, see the AU:OFX Stock Forecast page.

OFX Group Earnings Call: Navigating Challenges and Opportunities

Nov 12, 2025

The recent earnings call for OFX Group Limited painted a picture of a company navigating through a challenging period. The sentiment expressed during the call was a mix of cautious optimism and concern. While the company is experiencing declining financial performance and increased expenses, there are bright spots such as robust growth in the enterprise segment and increased client engagement. However, the overall tone suggests that OFX Group may need to reassess its strategies in light of the difficult macroeconomic environment impacting client confidence.

OFX Group Ltd Advances OFX 2.0 Strategy Amidst Financial Challenges

Nov 10, 2025

OFX Group Ltd reported a decline in its financial performance for the first half of 2026, with Fee and Trading Income down 4.7% due to global economic uncertainties. Despite challenges, the company is making progress with its OFX 2.0 strategy, including a global rollout of a new client platform and a refreshed go-to-market strategy, which has led to increased client acquisition and product adoption. The company continues to generate strong cash flows and is ahead of schedule in migrating clients to its new platform, which is expected to enhance revenue and client engagement.

The most recent analyst rating on (AU:OFX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on OFX Group Ltd. stock, see the AU:OFX Stock Forecast page.

OFX Group Reports Growth in Corporate Clients Amidst OFX 2.0 Transition

Oct 26, 2025

OFX Group Ltd has reported a 15.6% growth in new transacting corporate clients in the second quarter of FY26, driven by its new go-to-market strategy and the successful rollout of its New Client Platform (NCP) across major markets. Despite facing challenges from macroeconomic uncertainties that have impacted net operating income and transaction values, the company is seeing positive engagement from its corporate clients, particularly those migrated to the NCP. The transition to OFX 2.0 is showing promising results, with increased adoption of new products and higher account balances, positioning the company for future growth.