REA Group Ltd (AU:REA)
ASX:REA
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REA Group Ltd
(Sydney:REA)
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Rating:69Neutral
Price Target:
AU$173.00
▲(12.04% Upside)
Action:DowngradedDate:03/26/26
The score is driven primarily by strong underlying financial performance and a broadly positive earnings update with continued product momentum and shareholder returns. This is tempered by weak technical signals (downtrend across key moving averages with negative MACD) and near-term operating risks highlighted in guidance (listing softness, cost pressures, and India losses).
Positive Factors
High Profitability & Margins
REA's exceptionally high gross and net margins reflect a digital marketplace model with low incremental costs and strong pricing power for agent and advertiser products. Durable margin structure supports cash generation and reinvestment capacity across cycles, underpinning long-term profitability.
Negative Factors
Declining Free Cash Flow Growth
A notable fall in free cash flow growth reduces optionality for sustained elevated shareholder returns or incremental investment. If the decline persists, it could pressure balance between buybacks/dividends and funding for product development, elevating execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
REA's exceptionally high gross and net margins reflect a digital marketplace model with low incremental costs and strong pricing power for agent and advertiser products. Durable margin structure supports cash generation and reinvestment capacity across cycles, underpinning long-term profitability.
Read all positive factors
REA Group Ltd (REA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$20.37B
Dividend Yield1.33%
Average Volume (3M)249.67K
Price to Earnings (P/E)18.0
Beta (1Y)0.93
Revenue Growth13.09%
EPS Growth123.97%
CountryAU
Employees3,406
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)2.58
Shares Outstanding131,900,120
10 Day Avg. Volume245,328
30 Day Avg. Volume249,671
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)16.61
Price to Sales (P/S)16.47
P/FCF Ratio59.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$216.01Price Target Upside39.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)4.8
Revenue Forecast (FY)AU$1.80B
REA Group Ltd Business Overview & Revenue Model
Company Description
REA Group Limited engages in online property advertising business in Australia, India, and internationally. It provides property and property-related services on websites and mobile applications. The company operates residential, commercial, and s...
How the Company Makes Money
REA primarily makes money by monetising its online property marketplaces through B2B and advertising-led products sold to real estate industry customers. The core revenue stream is listing and depth products paid for by real estate agents and prop...
REA Group Ltd Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presented solid financial results (revenue +5%, EBITDA +6%, NPAT +9%), strong audience and engagement gains, clear momentum in AI adoption and product innovation, and proactive capital returns (dividend +13% and $200m buyback). Offsetting these positives were persistent listing volume weakness (notably in smaller capitals), geo mix uncertainty that could affect yield, increased operating costs from wage inflation and tech/licensing, and continued losses in India. On balance the company showed operational strength, disciplined capital management and confidence in AI-driven product levers, while acknowledging near-term regional listing challenges and cost pressures.Positive Updates
Revenue, EBITDA and Profit Growth
Group revenue increased 5% year-on-year to $916 million; EBITDA excluding associates rose 6% to $569 million; net profit after tax grew 9% to $341 million (H1 FY26).
Negative Updates
National Listing Volume Weakness and Two-Speed Market
National new buy listings declined 6% for the half (January down 8% YoY). Smaller capitals softened: Brisbane down ~12% and Perth down ~20% in the half, creating geo mix headwinds and prompting updated guidance that national residential buy listings are expected to decline 1%–3% for FY26.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue, EBITDA and Profit Growth
Group revenue increased 5% year-on-year to $916 million; EBITDA excluding associates rose 6% to $569 million; net profit after tax grew 9% to $341 million (H1 FY26).
Read all positive updates
Company Guidance
Management guided that FY‑26 national residential buy listings are expected to decline 1–3%, with residential buy yield growth of 12–14%; they expect mid‑single‑digit group operating expense growth (Australia high single‑digit) with Australian jaws modestly open and underlying OpEx growth at high single digits, India EBITDA losses of $40–45m and associates’ losses marginally improved vs FY‑25; capex is expected near the midpoint of the 7–9% of revenue target (H1 was 7%), FY‑26 depreciation & amortisation $138–147m, and the company finished H1 with $478m cash and $373m operating cash flow — capital returned to shareholders includes a $1.24 interim dividend (up 13%) and an on‑market buyback of up to $200m.REA Group Ltd Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.96B | 1.93B | 1.68B | 1.39B | 1.43B | 1.01B |
| Gross Profit | 884.20M | 1.86B | 1.08B | 636.50M | 598.00M | 498.40M |
| EBITDA | 1.00B | 1.06B | 683.00M | 622.20M | 649.30M | 544.90M |
| Net Income | 572.90M | 677.90M | 302.80M | 356.10M | 384.80M | 322.68M |
Balance Sheet | ||||||
| Total Assets | 2.97B | 2.83B | 2.65B | 2.63B | 2.57B | 2.36B |
| Cash, Cash Equivalents and Short-Term Investments | 478.40M | 428.80M | 205.10M | 259.80M | 248.20M | 168.90M |
| Total Debt | 176.00M | 70.70M | 281.20M | 403.20M | 487.00M | 495.60M |
| Total Liabilities | 873.80M | 881.30M | 1.08B | 1.11B | 1.21B | 1.22B |
| Stockholders Equity | 2.06B | 1.91B | 1.54B | 1.47B | 1.30B | 1.07B |
Cash Flow | ||||||
| Free Cash Flow | 717.70M | 537.40M | 464.40M | 355.10M | 392.60M | 254.50M |
| Operating Cash Flow | 723.20M | 675.40M | 589.40M | 472.70M | 487.60M | 321.40M |
| Investing Cash Flow | -207.10M | 71.10M | -205.20M | -133.60M | -194.70M | -381.50M |
| Financing Cash Flow | -373.00M | -521.60M | -439.40M | -329.30M | -219.40M | 11.90M |
REA Group Ltd Technical Analysis
Negative
154.41
Price Trends
166.97
Negative
178.34
Negative
205.20
Negative
Market Momentum
-3.49
Positive
42.49
Neutral
59.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REA, the sentiment is Negative. The current price of 154.41 is below the 20-day moving average (MA) of 161.58, below the 50-day MA of 166.97, and below the 200-day MA of 205.20, indicating a bearish trend. The MACD of -3.49 indicates Positive momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of 59.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:REA.
REA Group Ltd Peers Comparison
UnderperformOutperform
Sector (60)
AU:REA
REA Group Ltd
154.41
-66.28
-30.03%
AU:RMY
RMA Global Ltd.
0.04
<0.01
20.59%
REA Group Ltd Corporate Events
REA Group Updates Market on Progress of On‑Market Share Buy‑Back
Mar 25, 2026
REA Group Ltd has provided an updated notification to the ASX regarding its ongoing on‑market share buy‑back of ordinary fully paid shares. The latest daily report shows the company has repurchased a cumulative 354,941 shares prior to ...
REA Group updates market on daily on‑market share buy-back
Mar 24, 2026
REA Group Ltd has continued its on-market share buy-back program, focusing on its ordinary fully paid shares traded on the ASX under the code REA. The company reported that it had repurchased a total of 330,088 shares prior to the latest trading d...
REA Group issues daily update on ongoing on-market share buy-back
Mar 23, 2026
REA Group Ltd has provided an updated daily notification on its ongoing on-market share buy-back, covering ordinary fully paid shares under its existing capital management program. The company reported that it had repurchased a cumulative total of...
REA Group Reports Ongoing On-Market Share Buy-Back Activity
Mar 22, 2026
REA Group Ltd has disclosed an update to its on-market share buy-back program involving its ordinary fully paid shares traded under the ASX code REA. The company reported that a total of 258,090 shares had been repurchased prior to the latest repo...
REA Group logs daily progress in ongoing on‑market share buy‑back
Mar 12, 2026
REA Group Ltd has reported an update to its ongoing on‑market share buy‑back program for its ordinary fully paid shares. The company disclosed that, as of the latest daily notification dated 13 March 2026, it had repurchased a cumulati...
REA Group Continues On-Market Share Buy-Back With Daily Repurchases
Mar 9, 2026
REA Group Ltd has reported an update to its on-market share buy-back program, confirming a cumulative total of 138,013 ordinary fully paid shares repurchased prior to the latest trading day. The company also disclosed that it bought back an additi...
REA Group Logs Daily Progress in Ongoing On‑Market Share Buy‑Back
Mar 8, 2026
REA Group Ltd has notified the market of ongoing on‑market share buy‑back activity in its ordinary fully paid shares. The company reported that a cumulative 129,980 shares had been repurchased before the most recent trading day, with a...
REA Group Provides Daily Update on Ongoing Share Buy‑Back
Mar 5, 2026
REA Group Ltd has disclosed updated details of its on‑market share buy‑back, involving its ordinary fully paid shares traded under ASX code REA. The latest notification shows that a cumulative 110,671 shares had been repurchased prior ...
REA Group Provides Daily Update on On-Market Share Buy-Back
Mar 4, 2026
REA Group Ltd has issued an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares under the code REA. The latest daily update, dated 5 March 2026, reports that a total of 90,673 s...
REA Group Updates Market on Progress of On-Market Share Buy-Back
Mar 3, 2026
REA Group Ltd has reported an update to its on-market share buy-back program, confirming that it repurchased 12,920 ordinary fully paid shares in the most recent trading day. This takes the total number of shares bought back under the current prog...
REA Group issues daily update on ongoing on-market share buy-back
Mar 2, 2026
REA Group Ltd has provided an updated daily notification on its ongoing on-market share buy-back program for its ordinary fully paid securities. The company reported that a total of 67,440 shares had been repurchased before the previous trading da...
REA Group Updates Market on Progress of On-Market Share Buy-Back
Mar 1, 2026
REA Group Ltd has provided an update on its on-market share buy-back program for its ordinary fully paid shares traded on the ASX. The latest notification, dated 2 March 2026, reports that the company repurchased 2,533 shares on the previous tradi...
REA Group Updates Market on Ongoing On-Market Share Buy-Back
Feb 25, 2026
REA Group Ltd has provided an updated notification to the ASX on its ongoing on-market share buy-back program for its ordinary fully paid shares. The update, dated 26 February 2026, confirms the company is continuing to repurchase its own stock as...
REA Group continues on-market share buy-back with latest daily update
Feb 24, 2026
REA Group Ltd has issued an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares. The company reported that it repurchased 17,386 shares on the previous trading day, bringing the cumulative t...
REA Group Begins Daily On‑Market Buy‑Back of Ordinary Shares
Feb 23, 2026
REA Group Ltd has updated the market on its on‑market share buy‑back program, confirming that it is repurchasing its ordinary fully paid shares on the Australian Securities Exchange. The latest daily notification reports that 27,477 sh...
News Corp Files Quarterly 10-Q, Affirms Compliance and Discloses Key Financial Information
Feb 8, 2026
News Corporation has filed its quarterly Form 10-Q with the U.S. Securities and Exchange Commission for the period ended December 31, 2025, confirming it has met all required filing and electronic data submission obligations over the past 12 month...
REA Group Declares Interim Dividend of $1.24 per Share
Feb 5, 2026
REA Group Ltd has declared an ordinary fully paid share dividend of AUD 1.24 per share for the six-month period ended 31 December 2025. The dividend will trade ex-dividend on 3 March 2026, with a record date of 4 March 2026 and payment scheduled f...
REA Group Posts Higher Revenue and Core Profit but Lower Statutory Earnings as Portfolio Reshapes
Feb 5, 2026
REA Group Ltd reported a 5% rise in revenue to A$915.8 million for the half-year to 31 December 2025, while net profit after tax fell 24% to A$332.8 million, contrasting with a 9% increase in net profit after tax from core operations to A$340.6 mi...
REA Group sets 6 February date for half-year results briefing
Jan 19, 2026
REA Group Ltd has advised the market that it will release its financial results for the half-year ended 31 December 2025 on 6 February 2026, accompanied by a webcast briefing hosted by CEO Cameron McIntyre and CFO Janelle Hopkins. The scheduled up...
REA Group Reports Lapse of 13,500 Performance Rights in Capital Adjustment
Jan 13, 2026
REA Group Ltd has notified the market of the cessation of 13,500 performance rights, which lapsed in December 2025 after the conditions attached to those rights were not met or became incapable of being satisfied. The lapsing of these conditional ...
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.