The REA Group Ltd (ASX: REA) share price is up after the company announced its FY26 third-quarter update.
REA Group is the owner of realestate.com.au, as well as other property businesses such as realcommercial.com.au.
FY26 third-quarter performance
The company reported that for the three months to 31 March 2026, its core operations delivered revenue growth 11% to $398 million, with operating expenses of $178 million (up 5%).
The above figures led to EBITDA (EBITDA explained) excluding associates climbing by 16% to $220 million.
REA Group also gave its numbers including the effects of acquiring iGUIDE, divesting PropTiger and discontinuing Housing Edge. Unadjusted revenue climbed 6%, unadjusted operating expenses climbed 1% and unadjusted underlying EBITDA rose 11%.
The key driver of this performance was the 12% residential revenue growth of 12%, driven by strong buy yield growth of 14%.
National buy listing volumes grew 1%, with 4% growth for Sydney and 7% growth for Melbourne. It reported record Australian audiences, with 12.9 million people visiting each month on average in the quarter. It reported 150 million monthly visits (up 12% year on year).
There was also double-digit revenue growth in commercial & new homes and financial services.
REA Group also reported that AI is continuing to enhance its capability and delivery, with expansion of “conversational search to app experience, and next generation of AI-powered customer and broker tools.”
iGUIDE Australia launched operations in Australia in March, with several large photography networks signed up.
Outlook for the REA Group share price
The ASX tech share noted that amid higher interest rates and more normalised levels of buyer demand, customers and their vendors will be seeking to differentiate their listings, and it’s “incredibly well positioned in this more balanced market”.
REA Group is still expecting national residential buy listing volumes to decline by between 1% to 3% in FY26.
April listings were up 19% year on year, with Melbourne increasing 20% and Sydney rising 25%, though the company had been expecting this because of easier comparables in April 2025.
It’s expecting residential buy yield growth of approximately 13%. The business is expecting profit margins to increase in FY26, with expectations for operating cost growth improved.
Is this one of the best ASX tech shares to buy now? It depends on how/if AI changes how property buyers and vendors behave. Even if AI does reduce earnings from people using AI I don’t think that it’s going to be a large proportion of people using AI to choose a property to buy. So, it could be undervalued at this valuation.
