OFX Group Ltd. (OFX) AI Stock Analysis

• Market Cap: AU$137.87M
• Dividend Yield: N/A
• Average Volume (3M): 815.94K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.01
• Revenue Growth: -5.73%
• EPS Growth: -36.36%
• Country: AU
• Employees: 690
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.01
• Shares Outstanding: 231,709,690
• 10 Day Avg. Volume: 331,586
• 30 Day Avg. Volume: 815,939
• PEG Ratio: -0.47
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 32.16
• P/FCF Ratio: 5.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.86
• Price Target Upside: 72.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): AU$214.15M

• Rating: 63 Neutral
• Price Target: AU$0.61 ▲(22.40% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is primarily supported by solid financial strength (low leverage, healthy profitability) and a relatively low P/E valuation. Offsetting this are mixed technical signals and a cautious earnings-call backdrop due to recent operating underperformance, expense pressure, and macro challenges despite some strategic and segment-growth positives.

Positive Factors

Balance Sheet Strength

A low debt-to-equity profile and strong equity ratio give OFX durable financial flexibility. This capital strength supports continued investment in platform migration, underwriting of FX liquidity, and resilience through macro cycles, reducing refinancing risk and preserving strategic optionality.

Enterprise Segment Expansion

Rapid enterprise revenue growth signals successful penetration of higher-value, stickier customers. Expanding enterprise mix diversifies revenue away from volatile retail FX spreads, increases average contract value, and creates durable recurring flows that improve long-term revenue visibility and margin potential.

Platform Migration & Product Mix

Successful migration of ~60% of corporate clients to OFX 2.0 reduces operational fragmentation and enables new product delivery. It underpins non-FX revenue growth, lowers per-transaction costs over time, and supports scalable cross-sell, strengthening long-term unit economics and competitive positioning.

Negative Factors

Recent NOI & EBITDA Weakness

Declining NOI and underwhelming EBITDA reflect margin pressure and operational headwinds. If sustained, weaker operating profitability can delay target margin improvements, constrain reinvestment capacity for OFX 2.0, and raise execution risk on the company’s multi-year growth targets.

Rising Operating Expenses

A structural rise in operating costs tied to platform investment and higher personnel/promotional spend can compress margins if revenue gains lag. The payback on these investments must materialize in improved unit economics; otherwise elevated ongoing opex risks persistent margin erosion.

High-Value Consumer Revenue Decline

A meaningful drop in high-value consumer revenue highlights exposure to market volatility and lowers predictability of fee and spread income. Continued weakness in this cohort reduces overall revenue quality and increases reliance on enterprise and non-FX growth to meet profit targets.

OFX Group Ltd. Business Overview & Revenue Model

Company Description

OFX 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 Money

OFX 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. Financial Statement Overview

Summary

Financial statements indicate solid fundamentals: improving revenue/profit trends and healthy EBIT/EBITDA margins, supported by a robust balance sheet with low leverage and strong equity position. The score is tempered by a recent net profit margin decline and some variability in operating cash flow efficiency despite improved free cash flow.

Income Statement

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

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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	225.56M	8.34M	242.74M	228.86M	158.42M	134.69M
Gross Profit	183.73M	3.64M	227.51M	200.92M	137.06M	106.82M
EBITDA	18.99M	55.48M	64.56M	62.43M	44.50M	29.07M
Net Income	16.52M	24.86M	31.30M	31.41M	24.46M	12.78M
Balance Sheet
Total Assets	527.92M	566.91M	569.50M	680.85M	408.70M	378.04M
Cash, Cash Equivalents and Short-Term Investments	96.89M	360.59M	88.01M	93.80M	327.01M	60.57M
Total Debt	42.12M	32.93M	56.38M	79.14M	8.35M	17.30M
Total Liabilities	346.76M	385.08M	399.86M	536.74M	304.80M	297.75M
Stockholders Equity	181.16M	181.82M	169.64M	144.11M	103.89M	80.29M
Cash Flow
Free Cash Flow	34.43M	52.41M	-43.23M	152.05M	37.08M	52.23M
Operating Cash Flow	35.72M	72.53M	-18.64M	172.92M	48.55M	61.35M
Investing Cash Flow	-30.95M	-45.10M	-16.76M	-94.96M	-15.66M	-3.96M
Financing Cash Flow	-31.94M	-43.66M	-43.26M	58.03M	-6.17M	-12.77M

OFX Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OFX, the sentiment is Positive. The current price of 0.5 is below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.56, and below the 200-day MA of 0.69, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:OFX.

OFX Group Ltd. Peers Comparison

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	63 Neutral	AU$137.87M	21.16	9.10%	―	-5.73%	-36.36%
COG	54 Neutral	AU$286.01M	10.89	12.36%	2.86%	-26.30%	40.12%
PPS	52 Neutral	AU$307.11M	9.65	15.42%	2.81%	24.56%	59.32%
RZI	48 Neutral	AU$56.91M	5.73	-0.15%	―	5.03%	52.31%

OFX Group Ltd. Corporate Events

OFX names seasoned finance leader James Georgeson as new CFO amid strategic review

OFX Group Ltd has appointed experienced finance executive James Georgeson as its new Chief Financial Officer, with his tenure beginning on 23 February 2026 under an initial contract through 31 March 2027. Outgoing CFO Selena Verth will stay with the company until 30 June 2026 to ensure a smooth handover, reflecting a managed leadership transition during an ongoing strategic review.

Georgeson brings extensive financial services and public company experience from his recent role as CFO of EML Payments and more than two decades at AMP, where he led major M&A transactions and transformation programs including business separations and asset sales. OFX’s leadership highlights that his expertise in international operations, transformation and M&A is expected to support the execution of the company’s 2.0 strategy and to strengthen its financial leadership as it navigates its next phase of growth and strategic options.

The most recent analyst rating on (AU:OFX) stock is a Hold with a A$0.69 price target. To see the full list of analyst forecasts on OFX Group Ltd. stock, see the AU:OFX Stock Forecast page.

OFX Group Cancels 48,751 Performance Rights After Conditions Not Met

OFX Group Limited has disclosed the lapse of 48,751 performance rights, which ceased on 19 December 2025 after the conditions attached to those rights were not met or became incapable of being satisfied. The cancellation of these conditional securities slightly reduces the company’s potential future share issuance under its incentive arrangements, tightening the capital structure and potentially signaling that certain performance hurdles or strategic milestones were not achieved within the specified period.

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 to Issue 7.5 Million Unquoted Performance Rights Under Employee Incentive Plan

OFX Group Limited has notified the market of the planned issue of 7,471,447 unquoted performance rights under its employee incentive scheme, with an issue date of 15 December 2025. The new performance rights, which will not be quoted on the ASX, reflect the company’s ongoing use of equity-based remuneration to incentivise and retain staff, aligning employee interests with shareholder value and potentially leading to future dilution if the rights vest and are converted into ordinary shares.

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.