REA Group shares: Q3 revenue climbs and user engagement breaks records

The REA Group Ltd (ASX: REA) share price is in focus after the company reported third-quarter revenue of $398 million, up 11% excluding acquisitions, and delivered a 16% lift in EBITDA to $220 million from its core operations.

What did REA Group report?

• Q3 FY26 revenue of $398 million, up 11% excluding M&A (6% unadjusted)
• Operating EBITDA (excluding associates) of $220 million, up 16% excluding M&A (11% unadjusted)
• Operating expenses of $178 million, up 5% excluding M&A (1% unadjusted)
• Record 12.9 million monthly average Australian users and 150 million average monthly visits
• Residential revenue up 12% driven by 14% buy yield growth and higher listing volumes
• Q3 free cash flow of $135 million, up 2%

What else do investors need to know?

REA Group achieved double-digit revenue growth in Commercial, New Homes, and Financial Services during the quarter. Its core residential business saw strong yield growth and a return to growth in listing volumes, especially in Sydney and Melbourne.

Product innovation remains a focus, with artificial intelligence powering new consumer and broker tools and the launch of iGUIDE’s operations in Australia. Record user engagement was highlighted by more properties being tracked, an increase in seller leads, and more active members on realestate.com.au.

REA Group updated its full-year guidance, now expecting group operating costs to rise by low to mid single-digits—an improvement on prior forecasts. The company also continued its share buy-back, reflecting confidence in its long-term outlook.

What did REA Group management say?

REA Group CEO 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.

What’s next for REA Group?

REA Group maintains its guidance for a 1–3% decline in national residential Buy listing volumes for FY26, while expecting around 13% buy yield growth to continue driving results. The company anticipates “positive operating jaws” with revenue growth outpacing costs in both Australia and the broader group.

Innovation remains central, with further rollouts of AI-driven features and a focus on differentiated listing products to meet more normalised buyer demand. The group continues to invest in digital solutions for property and financial services across its Australian and international businesses.

REA Group share price snapshot

Over the past 12 months, REA Group shares have declined 30%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

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The post REA Group shares: Q3 revenue climbs and user engagement breaks records appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.