REA Group Q3 2026: Double-Digit Revenue Growth Fuels "Excellent" Quarter

REA Group has reported what it described as an "excellent" third quarter for FY26. The ASX-listed portal operator delivered double-digit revenue growth across all of its Australian businesses as a cleanup in India took shape.

Highlights include:

• Revenue of AUD$398 million, up 6% year on year
• Operating EBITDA of AUD$220 million, up 11%
• Operating EBITDA margin of 55.3%, up from 53.2% in Q3 FY25
• Residential revenue in Australia was up 12%
• REA India revenues down 65% post the PropTiger and Housing Edge divestments
• Housing.com's core revenue was AUD$12 million, down 17% in AUD terms (down 3% constant currency)
• National Buy listings up 1%, the first quarterly growth in four quarters, with Sydney up 4% and Melbourne up 7%
• On-market share buyback of up to AUD$200 million underway, with AUD$75.5 million completed to date
• Free cash flow of AUD$135 million, up 2%

The result extends a steady multi-year revenue march. Q3 revenue has lifted from AUD$334 million in 2024 to AUD$374 million in 2025 and AUD$398 million in 2026, equating to year-on-year growth of 12% and then 6% respectively, or a cumulative 19% rise across two years.

Residential revenue in Australia, the heart of the business, grew 12% year-on-year. REA Group says the revenue growth is attributable to a 14% increase in Buy yield, and a 7% price increase for the Premiere+ advertising package.

Listing volumes grew for the first time in four quarters, up 1% nationwide, with single-digit growth in Sydney and Melbourne.

Commercial and New Homes, alongside Financial Services, also posted double-digit revenue growth. Mortgage Choice, the broking franchise owned by REA, benefited from a 21% jump in settlements, while PropTrack revenues lifted on customer data contracts.

REA Group Chief Executive Officer, Cameron McIntyre, said:

"REA Group's third quarter performance reflects our focus on enhancing our immersive consumer experiences, and increasing the value delivered to customers. The result was underpinned by double digit revenue growth across our Australian businesses and strong double-digit yield growth in our core residential business. Strong underlying fundamentals supported the health of the property market and supply kept pace with buyer demand.

"While global events and interest rate increases impacted broader economic sentiment, listing activity in the two largest property markets, Sydney and Melbourne, remained strong. More Australians than ever before turned to realestate.com.au in the quarter with a new quarterly record of 12.9 million average monthly visitors. New data in the quarter highlighted that REA attracts and engages the buyer for 9 in 10 properties that sell on our platform, further strengthening the value proposition for our customers and their vendors."

realestate.com.au attracted a record number of eyeballs in Q3, with 12.9 million average monthly visitors, 150 million visits and 2.6 million buyer enquiries, up 10% year on year. Meanwhile, Active membership lifted 19%, while the number of properties tracked by their owner climbed 16% to 5 million. Seller leads were up 28%.

REA India, however, is a different story. Revenues collapsed 65% in the quarter following the September 2025 divestment of PropTiger and the Q2 wind-down of Housing Edge, leaving Housing.com as the last asset standing.

Housing.com's core revenues were down 17% lower in Australian dollars at AUD$12 million, as competition on pricing and packaging eats into yields. Operating costs in the region fell 45%, in what REA described as a "strategic reset and simplified structure."

With Housing.com now generating just AUD$12 million in quarterly revenue, contributing little to group profitability, and going toe-to-toe with entrenched domestic players such as Magicbricks, 99acres and NoBroker, is the portal itself the next candidate for divestment?

The India platform has yet to deliver meaningful returns. A sale to a domestic operator, on a cleaner standalone basis, would arguably tidy the picture up nicely, and after the PropTiger and Housing Edge exits, it would be a logical next step rather than a surprise. CoStar Group's entry into the Australian market will only tighten strategic focus on maintaining realestate.com.au's market leadership position.

Back at home, the group continued to lean into AI, expanding conversational search across its app experience and rolling out a new generation of AI-powered tools for customers and brokers. iGUIDE Australia, the 3D tour and floor plan business REA took a majority stake in last October, launched local operations in March, with several large photography networks already signed up.

McIntyre said: "With more normalised levels of buyer demand, customers and their vendors will be seeking to differentiate their listings, and REA is incredibly well positioned in this more balanced market. Increasingly, our product features are powered by AI, accelerating our speed to market and enhancing the experiences we deliver."

Share prices ticked up slightly this morning, rising from A$174.48 to A$176.8, at a market capitalisation of A$22.96B.