Platform Business Model & Network EffectsPEXA’s platform connects banks, conveyancers and land registries, creating durable network effects tied to transaction volume. The transaction-fee model scales as adoption rises, raising switching costs and client lock-in that support steady revenue generation over months to years.
High Gross MarginsAn 82.12% gross margin indicates software-like economics and strong unit economics for settlement workflows. High recurring incremental margins allow the business to absorb SG&A, fund innovation and sustain profitability if volumes recover, underpinning long-term margin resilience.
Operating Cash ConversionOperating cash flow exceeding net income shows the company converts accounting earnings into real cash. Persistent cash generation supports reinvestment in product and working capital while reducing near-term reliance on external financing, improving medium-term financial flexibility.