The REA Group Ltd (ASX: REA) share price is in focus after the company reported Q1 FY26 revenue of $429 million, up 4% year-on-year, and core EBITDA of $254 million, up 5%.
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What did REA Group report?
- Group revenue rose 4% year on year to $429 million
- EBITDA (excluding associates) increased 5% to $254 million
- Australian revenue up 6% to $405 million; India revenue down 20% to $24 million
- Free cash flow jumped 16% to $86 million
- Operating expenses increased 3% to $175 million
- Residential revenue up 4% despite an 8% drop in national listings, driven by a 13% rise in yield
What else do investors need to know?
REA Group delivered strong performance in a healthy property market, with increased adoption of premium products and heightened buyer demand helping boost yield. The company's flagship site, realestate.com.au, continued to grow its audience with record monthly visits and a 19% increase in buyer enquiries year-on-year.
On the international front, REA India's revenue declined, reflecting weaker performance in adjacency services and lower PropTiger revenues, though Housing.com saw core revenue growth. The company completed the divestment of PropTiger and discontinued Housing Edge following regulatory changes.
What did REA Group management say?
Commenting on the result, Cameron McIntyre, Chief Executive Officer said:
This is a great time to be joining REA Group. The business has a clear strategy and I am impressed with the strong talent across our team. Our focus remains on delivering the greatest value in the market for our customers, and REA is well positioned with the financial strength, momentum and expertise to deliver the next generation of products and experiences.
I congratulate the team on the strength of this Q1 result. It's clear to me that we are well placed for continued growth, supported by a healthy property market and an exciting product pipeline. I look forward to working with the team to build on this foundation and deliver for our customers and consumers.
What's next for REA Group?
Looking ahead, REA Group expects national residential Buy listing volumes to be broadly steady compared to last year's strong market. The group plans to maintain double-digit yield growth, with a 7% national average price rise for its key Premiere+ product.
Operating expenses are expected to increase mid single-digits, reflecting ongoing tech investment and the integration of iGUIDE. The business will focus on building momentum in Australia, completing strategic changes in India, and continuing to grow its premium offerings.
REA Group share price snapshot
REA Group shares have declined 10% over the past 12 months, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.
