The REA Group Ltd (ASX: REA) share price is getting attention after reporting earnings growth in its FY26 first quarter.
REA Group is the owner of realestate.com.au, various other Australian property businesses and a majority stake in REA India.
REA Group FY26 first quarter
The company reported in the three months to 30 September 2025 that its revenue increased 4% to $429 million, while operating expenses only increased by 3% to $175 million.
This led to EBITDA (EBITDA explained) climbing by 5% to $247 million and free cashflow rising by 16% to $86 million.
REA Group said that its delivered strong yield growth (with its property advertisements) in a healthy property market as customers continued to adopt premium products and “recognised the increasing value” of its audience.
Australia performance
While national listings were down 8%, the market is benefiting from strong buyer demand and listing activity relative to historical averages – last year had an exceptionally high volume.
Australian revenue increased 6% year on year, with buy revenue growth driven by a 13% increase in the yield, partly thanks to a 7% average Premiere+ price rise.
Realestate.com.au saw 147.9 million average monthly visits, 111.4 million more monthly visits than the nearest competitor on average. There were 2.7 million average monthly realestate.com.au buyer enquiries, up 19% year on year.
India performance
REA India revenue declined by 20% year on year. While housing core revenue saw modest growth, this was more than offset by a reduction in adjacency services on Housing Edge and lower PropTiger revenue.
The company said Housing.com continues to be its strategic priority.
In July, REA India divested PropTiger to Aurum for a 5.5% equity interest in that business.
After recent regulatory changes impacting the commercial viability of the Housing Edge offering, REA India made the decision to discontinue this business in October. It made $12 million of EBITDA in FY25.
iGUIDE acquisition
On 10 October 2025, REA Group acquired a 61.5% controlling stake of Planitar Inc, the maker of iGUIDE for $55 million.
iGUIDE is based on Canada, providing a proprietary camera and software platform that uses advanced AI capabilities to identify property features and produce “immersive 3D virtual tours, precise floor plans and reliable property measurement data.”
It produced revenue of $21 million in FY25 and was broadly EBITDA neutral.
Outlook for the REA Group share price
The company said there is strong buyer demand nationally, with continued house price growth.
Supply has improved in Melbourne and Sydney, which is supporting strong new listings activity. Limited stock in other cities is resulting in some vendors delaying the listing of their properties.
National listing volumes are still expected to be broadly in line with last year. October national listings were down 3%, but up 2% in Melbourne and up 6% in Sydney.
It continues to target double-digit residential buy yield growth, with a 7% national average Premiere+ price rise. It’s also targeting higher profit margins.
I think the REA Group share price is worth buying at this level for the long-term, particularly if it’s able to continue growing its prices without negative impacts.
But, there are other ASX growth shares that could deliver even more growth.
