OFX Group Ltd. (AU:OFX)
ASX:OFX
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OFX Group Ltd.
(Sydney:OFX)
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Rating:61Neutral
Price Target:
AU$0.56
▲(11.80% Upside)
Action:Reiterated
Date:05/20/26
The score is driven primarily by solid financial footing (manageable leverage and strong cash generation) but is held back by the latest profitability/revenue deterioration. Technicals remain soft with the stock below key longer-term moving averages, and valuation is unattractive/unclear due to negative earnings (negative P/E). The latest earnings call adds moderate support from a clear FY27 improvement plan and strong platform execution, tempered by materially weaker FY26 results and macro-dependent timing.
Positive Factors
Strong operating cash generation
Sustained >100% operating cash conversion and a sharp FCF rebound provide durable liquidity to fund platform investment, hedge FX risk and absorb volatility. Strong cash conversion helps de-risk medium-term targets and supports reinvestment without needing external financing.
Negative Factors
Revenue and NOI decline
Top-line pressure and NOI contraction reflect structural sensitivity to transaction volumes, mix shifts to lower-margin flows and macro-driven hedging pullbacks. Persistent revenue weakness undermines sustainable margin expansion and delays achievement of medium-term growth targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash generation
Sustained >100% operating cash conversion and a sharp FCF rebound provide durable liquidity to fund platform investment, hedge FX risk and absorb volatility. Strong cash conversion helps de-risk medium-term targets and supports reinvestment without needing external financing.
Read all positive factors
OFX Group Ltd. (OFX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$133.25M
Dividend YieldN/A
Average Volume (3M)815.94K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth-7.93%
EPS Growth-101.72%
CountryAU
Employees690
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding231,744,670
10 Day Avg. Volume331,586
30 Day Avg. Volume815,939
Financial Highlights & Ratios
PEG Ratio3.13
Price to Book (P/B)0.71
Price to Sales (P/S)0.58
P/FCF Ratio0.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)<0.01
Revenue Forecast (FY)AU$216.04M
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...
How the Company Makes Money
OFX primarily makes money from fees and FX-related revenue earned when customers execute international transfers and currency conversions. A key revenue driver is the spread (or margin) between the exchange rate OFX offers a customer and the rate ...
OFX Group Ltd. Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong operational and strategic progress with the OFX 2.0 platform migration, clear signs of product traction (multiproduct adoption, rising NTCs), improved technology delivery, growing non-FX revenue and a solid cash position. These positives are offset by a notable decline in top-line trading revenues, a severe reduction in underlying EBITDA versus the prior year, weaker consumer and corporate transaction activity driven by macro uncertainty and a meaningful increase in certain operating costs and bad debts. Management outlines a path to recovery but timing is dependent on market conditions.Positive Updates
Major OFX 2.0 Migration Largely Complete, On Time and On Budget
Completed migration of over 90% of corporate clients and major markets to the new client platform (NCP); launched in Canada, EMEA, Australia upgrades, U.S. launch with partner bank and New Zealand launch; management states migrations executed within budget and time frames.
Negative Updates
Revenue and NOI Decline
Fee and trading income down 8.1% to $203.9m; Net Operating Income (NOI) $196.6m, down 8.5% year-over-year; management cited macro uncertainty, lower volumes and mix shift to lower-margin same-currency transactions and spots.
Read all updates
Q4-2026 Updates
Positive
Negative
Major OFX 2.0 Migration Largely Complete, On Time and On Budget
Completed migration of over 90% of corporate clients and major markets to the new client platform (NCP); launched in Canada, EMEA, Australia upgrades, U.S. launch with partner bank and New Zealand launch; management states migrations executed within budget and time frames.
Read all positive updates
Company Guidance
Guidance from the call was that OFX expects to return to positive operating leverage in FY27 with a medium‑term target of ~15% NOI growth and underlying EBITDA margins of around 30%; near‑term expectations include growth in corporate active clients (after >90% of corporate clients migrated to the NCP and 23,000+ active corporate clients on the platform, up ~70% vs H1), steady cross‑currency ATVs (down just over 4% in FY26), stabilization of consumer revenue, and continued mid‑teens growth in enterprise, while controlling costs (operating expenses to be broadly flat in FY27 with absolute cost growth limited to inflation and a slight increase for rebased incentives). Key FY26 baselines cited were fee & trading income $203.9m, NOI $196.6m, underlying EBITDA $25.2m (operating cash flow $26.7m; operating cash conversion >100%), operating expenses $171.5m (up 9.1%), net cash held $71.6m (net available cash $49.6m, debt $18m), non‑FX revenue $1.8m (non‑FX almost tripled over four quarters, Q4 interest from balances ≈$1m), wallet balances ≈$233m, new trading clients +8% FY26 (April +20% YoY), multiproduct adoption 8.4% in Q4 (from 4.5% in Q3), forward book down ~15%, turnover down 6.4% and total revenue down just under 10% (consumer revenue down 13.8%).OFX Group Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
80
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 213.01M | 8.34M | 242.74M | 228.86M | 158.42M |
| Gross Profit | 149.48M | 3.64M | 227.51M | 200.92M | 137.06M |
| EBITDA | 23.54M | 55.48M | 64.56M | 62.43M | 44.50M |
| Net Income | -391.00K | 24.86M | 31.30M | 31.41M | 24.46M |
Balance Sheet | |||||
| Total Assets | 689.89M | 566.91M | 569.50M | 680.85M | 408.70M |
| Cash, Cash Equivalents and Short-Term Investments | 109.28M | 360.59M | 88.01M | 93.80M | 327.01M |
| Total Debt | 35.01M | 32.93M | 56.38M | 79.14M | 8.35M |
| Total Liabilities | 514.38M | 385.08M | 399.86M | 536.74M | 304.80M |
| Stockholders Equity | 175.51M | 181.82M | 169.64M | 144.11M | 103.89M |
Cash Flow | |||||
| Free Cash Flow | 140.25M | 52.41M | -43.23M | 152.05M | 37.08M |
| Operating Cash Flow | 141.13M | 72.53M | -18.64M | 172.92M | 48.55M |
| Investing Cash Flow | -18.11M | -45.10M | -16.76M | -94.96M | -15.66M |
| Financing Cash Flow | -11.28M | -43.66M | -43.26M | 58.03M | -6.17M |
OFX Group Ltd. Technical Analysis
Positive
0.50
Price Trends
0.55
Positive
0.55
Positive
0.64
Negative
Market Momentum
<0.01
Negative
58.36
Neutral
73.68
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 0.54, below the 50-day MA of 0.55, and below the 200-day MA of 0.64, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 73.68 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | AU$318.84M | 10.89 | 13.31% | 2.86% | -38.87% | 60.62% | |
61 Neutral | AU$133.25M | -318.09 | -0.22% | ― | -7.93% | -101.72% | |
52 Neutral | AU$333.92M | 9.65 | 15.42% | 2.81% | 12.61% | 69.59% | |
48 Neutral | AU$61.65M | 5.73 | 10.48% | ― | 15.57% | ― |
* Financial Sector Average
AU:OFX
OFX Group Ltd.
0.58
-0.15
-20.14%
AU:RZI
Raiz Invest Ltd.
0.59
-0.06
-9.30%
AU:PPS
Praemium Ltd
0.69
-0.03
-3.66%
AU:COG
COG Financial Services Limited
1.50
0.06
4.25%
OFX Group Ltd. Corporate Events
OFX Seeks ASX Quotation for New Ordinary Shares After Option Conversions
May 5, 2026
OFX Group Ltd. has applied for quotation on the ASX of 34,982 new ordinary fully paid shares, with an issue date of May 5, 2026. The additional securities arise from the exercise or conversion of existing options or other convertible instruments, ...
OFX Flags Softer Q4 but Marks Major Milestone in Platform Transition
Apr 22, 2026
OFX Group reported a softer fourth quarter for the year to 31 March 2026, with net operating income down 9.6% on the prior quarter and 11.8% year on year amid weak business and consumer confidence in key markets and an unusually soft February, tho...
OFX Group Cancels More Than 3.2 Million Lapsed Performance Rights
Mar 20, 2026
OFX Group Ltd. has announced the lapse of 3,285,644 performance rights that formed part of its equity-based remuneration arrangements. The securities ceased on 31 March 2026 after the conditional rights became incapable of being satisfied, effecti...
OFX Group Reports Lapse of 530,884 Performance Rights
Mar 20, 2026
OFX Group Ltd. has notified the market that 530,884 performance rights, classified as OFXAC securities, have ceased as of 31 January 2026. The rights lapsed because the conditions attached to them were not met or could no longer be satisfied, resu...
S&P Dow Jones Revises March 2026 All Ordinaries Rebalance, Adds New Constituents
Mar 10, 2026
SP Dow Jones Indices has updated its March 2026 quarterly rebalance of the All Ordinaries index, reversing earlier decisions regarding African Gold Limited and American Rare Earths Limited. African Gold will no longer be added, while American Rare...
OFX names seasoned finance leader James Georgeson as new CFO amid strategic review
Feb 22, 2026
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 t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.