OFX Group Ltd. (OFX) Q2 2027 Earnings Report

The call acknowledged substantial first-half deterioration, including a 15% decline in NOI, a $4 million underlying EBITDA result, reported losses, lower cash, subdued transaction activity, and higher bad debts. However, management emphasized improving quarter-on-quarter revenue, rapid growth in non-FX revenue and wallet balances, stronger multiproduct client economics, targeted cost reductions, completed transformation investment, and expectations for positive operating leverage and materially stronger EBITDA in the second half. The forward-looking tone was optimistic despite the continuing macroeconomic challenges.

For fiscal year ’27, the company expects underlying OpEx to be down to between $159 million and $162 million, a decline of around $10 million, with $10 million of annualized cost savings in the second half of ’27 and the residual $5 million in full year ’28; second half ’27 operating expenses are expected to be between $74 million and $77 million. The company is targeting NOI to grow modestly in the second half, with guidance of 2% to 3% NOI growth on the first half results, assuming the broader backdrop of interest rates, business confidence and those kind of things are fairly steady, and expects positive operating leverage on an underlying basis and clearly a much stronger underlying EBITDA in the second half. Full year CapEx investments are expected to be approximately $17 million to $19 million, slightly lower than prior guidance, and net available cash is expected to improve by year-end. For fiscal year ’28, assuming we can again generate modest NOI growth, the company expects operating leverage, with its cost base slightly down on fiscal year ’27, including the impact of resuming STI funding, short-term incentive funding, to 100%, supported by the additional $5 million in cost savings and a return to more normal and modest bad debts; bad and doubtful debt should level out at circa 2% of revenue going forward.