The REA Group Ltd (ASX: REA) share price has surged 7% in response to its FY25 result.
REA Group is the parent company behind property portals realestate.com.au, realcommercial.com.au, PropTrack and several other Australian businesses. It has also invested in leading US and India property portals.
REA Group FY25 result
Here are some of the financial highlights from the 12 months to 30 June 2025:
- Total revenue increased 15% to $1.67 million
- Expenses grew 12% to $704 million.
- EBITDA (EBITDA explained) grew 18% to $969 million
- Net profit after tax (NPAT) rose 23% to $564 million
- Final dividend up 35% to $1.38 per share
Australian performance
The business reported a strong level of growth for both Australia and India, with revenue growth of 14% and 25%, respectively, for Australia and India to $1.54 billion and $129 million.
Australian residential income increased 16% to $1.16 billion thanks to a 14% increase in the buy ‘yield’ and a 1% increase in national listings. Sydney listings increased 2%, while Melbourne listings declined 1%.
Commercial and developer revenue increased 10% to $218 million, with commercial revenue growth driven by an average 12% price rise.
Other revenue, including CampaignAgent and PropTrack, increased 8% to $89 million. CampaignAgent delivered “strong growth”.
Financial services revenue grew 10% to $81 million – improving market activity saw a 15% increase in submissions and 10% growth in settlements. The broker network increased by 4% to 1,119 brokers.
India
In India, revenue from ‘adjacent services’ in Housing Edge increased 72%, driven by increased customer acquisition and usage. Housing.com revenue grew 7%, benefiting from stronger customer events and improved monetisation, though the yield was impacted in a competitive market. PropTiger revenue fell 17%.
In July, REA India entered into a binding agreement with listed proptech company Aurum PropTech to divest its PropTiger business in exchange for a 5.5% equity stake in Aurum. This will allow REA India to focus on Housing.com. In FY25, PropTiger was 11% of REA India’s revenue and was broadly.
Profitability
Pleasingly, profit grew both businesses too. Australian EBITDA increased 16% to $998 million and India EBITDA went up 20%.
It has minority stakes in other businesses.
Total losses from its equity-accounted investments were $26 million, with Move being the main element of that. Revenue from Move Inc, which operates realtor.com in North America, increased 1% in FY25 to US$552 million.
Growth in seller, new homes and rentals revenue at Move was largely offset by the continued impact of the macroeconomic environment on the US housing market, which resulted in lower transaction volumes and a 9% decline in leads.
Move’s equity accounted loss was $19 million, an improvement from the $21 million loss in the prior period.
The other businesses include Athena Home Loans and Arealytics.
FY26 outlook
REA Group said that market conditions “remain healthy, with strong employment and expectations of further interest rate cuts likely to continue to support buyer demand and vendor confidence to list.”
The company expects national residential buy listing volumes to be “broadly in line” with last year’s healthy market.
The FY26 first quarter listings are expected to be lower due to “very strong comparables”, with July listing volumes down 8% year on year. Sydney listings were down 5% and Melbourne listings were down 9%.
REA Group is targeting a double-digit residential buy yield growth, including a 7% national average Premiere+ price rise. It’s also targeting higher profit margins.
The loss contributions from its minority investments are expected to “improve modestly” year on year.
Final thoughts on the REA Group share price
Investors clearly liked the news and the market has already reacted, it’s not cheap. I think it has a promising long-term future, but I’m not sure how much more market share it can gain in Australia or how much further it can grow its prices before there’s significant pushback.
For now, there are other ASX growth shares I’m focused on.
