Fund Manager Summary on OFX Group Ltd Fully Paid Ord. Shrs (ASX:OFX)
In January 2026, Forager Funds commented that OFX Group Ltd Fully Paid Ord. Shrs (ASX:OFX) was a beaten-up asset with a contracting revenue base and weaker profitability but could be valuable to a larger, scaled FX player if its internal turnaround does not succeed. Across fund manager commentary there is a clear consensus that OFX faces near-term headwinds from macro-driven lower FX volumes and market sentiment (including trade tariff concerns and election-driven volatility) that pressured FY25 results—reported revenue of $222m (down 3.4%) and underlying EBITDA of $58m (down 10.7%)—and prompted analysts to cut forecasts and the market to reprice the stock; managers nonetheless highlight the strategic pivot to OFX 2.0/New Client Platform (NCP) as the primary path to recovery, noting accelerated rollout plans, early traction (active NCP corporate clients and reported non‑FX revenue contribution in pilot cohorts), ongoing migration progress (Selector reported 39% of existing corporate customers onboarded and 2,544 active clients cited), and planned investment to complete the platform (additional spend cited at ~$29m across 2026–27 or incremental Opex $24m plus CAPEX ~$5m in some reports) that will weigh on near‑term margins but aims to lift recurring and non‑FX revenue over time; identified risks include continued weak transaction values, higher bad debts (Selector noted $3.2m in the quarter), competitive pressure from banks and evolved rivals, suspended guidance increasing earnings uncertainty, and the possibility that management may need to scale back spend or consider strategic alternatives if platform uptake and margin recovery do not materialize, while actionable monitoring points are NCP migration rates, non‑FX revenue growth, EBITDA trajectory and guidance reinstatement, bad‑debt trends and capex/opex milestones, and potential M&A interest given the company’s net cash buffer cited by managers.
Commentary From The Managers
There are 21 insights from 6 fund managers regarding their investment in OFX Group Ltd Fully Paid Ord. Shrs (ASX:OFX) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Forager Funds
22 Jan 2026
$0.49
Summary
- Forager Funds believes OFX remains an attractive opportunity and continues to hold because the core FX payments asset can generate significant value if execution improves or if acquired by a larger player.
- It was a detractor to performance last year: headline results weighed on the fund as the business underperformed expectations.
- The revenue base has not been growing and at the headline level has been contracting slightly, driven by lower volumes and pricing pressure.
- Profitability has deteriorated as margins compressed while fixed costs persisted, reducing earnings and cash flow.
- Despite weak near‑term results, the underlying FX payments platform, customer relationships and market position are a strategically attractive asset with durable structural value.
- If internal recovery efforts don’t succeed, the business could be very valuable in the hands of a larger scaled FX player, which could unlock synergies and restore margin power.
- Forager Funds is holding to allow time for execution and to retain optionality for upside from either operational recovery or a strategic outcome.
Forager Funds
31 Dec 2025
$0.49
Summary
- Forager Funds believes OFX's strategic shift and strong balance sheet justify continued ownership and continues to hold because non-FX revenue is ramping, platform adoption is accelerating and $47 million net cash provides runway despite near-term trading weakness.
- H1 results: net operating income down 5.6% year-on-year; consumer revenue -11%; management's preferred profitability measure halved due to softer trading and a deliberate step-up in costs.
- Drivers of weakness: lower transaction values and subdued FX volatility as macro uncertainty weighed on small business confidence.
- Corporate upside: corporate transaction volumes increased, new transacting corporate clients rose and enterprise revenue +48% year-on-year.
- Platform progress: non-FX revenue ramping from near zero via cards, wallets and payment products; active clients on the new platform more than doubled; wallet balances increased materially and cross-sell indicators are trending positively.
- Capital capacity: $47 million net cash provides ample capacity to fund the transition and ongoing investment.
- Key risks: increasing competition in FX and elevated investment spend to match rivals; the success of the improved platform with corporate customers by H2 (ending March) is pivotal—failure may force reduced spend or consideration of a sale to a group that can extract more value.
Selector Funds Management
31 Oct 2025
$0.62
Summary
- Selector Funds Management continues to hold its position in OFX Group (ASX:OFX) due to recent developments.
- OFX reported a revenue of $31.3m in Q2, reflecting a 9% decline compared to the previous corresponding period, attributed to macroeconomic uncertainties.
- Management noted an increase in bad debts amounting to $3.2m, a 9% rise linked to incidents in the North American corporate segment.
- The company has implemented enhanced risk controls and is witnessing improvements, with a reduction in bad debts projected for Q3.
- The new client platform (NCP) is now operational in all major markets, with 39% of existing active corporate clients successfully onboarded.
- Management emphasized ongoing innovation, launching 80 new products and features in the quarter, including a two-way sync with Quickbooks.
- A refreshed go-to-market strategy has led to improved client acquisition on the NCP, with interest-bearing account balances exceeding expectations.
- OFX currently holds a market capitalisation of $137m.
Forager Funds
18 Aug 2025
$0.81
Summary
- Forager Funds has initiated a position in OFX Group due to its recent price recovery.
- The stock rallied over 10% after a significant decline of about 30% in May.
- OFX Group traded below $1 for the first time since its listing in October 2013.
- The recent results released by OFX missed nearly every key metric.
- Johnson views OFX and IDP as heavily beaten up small caps with potential for recovery.
- There are many former darlings in the small cap space that are becoming attractive.
- The current market environment is seen as prospective, especially given high valuations in larger companies.
Selector Funds Management
30 June 2025
$0.75
Summary
- OFX Group is an international payment services provider, offering solutions for 50+ currencies across 180+ countries.
- Founded in 1998 and listed on the ASX in 2013, the company has expanded its business model and remains debt-free.
- Management has repurchased 17.8 million shares, equating to 7.4% of the original shares issued.
- The current management team, led by CEO Skander Malcolm and CFO Selena Verth, has focused on targeting the B2B segment, particularly SMEs.
- At the March 2023 Investor Day, management emphasized a future of both organic and inorganic growth, including recent acquisitions.
- The acquisition of Paytron aims to enhance OFX's product offerings, moving beyond spot transactions.
- OFX's strategy is built on five pillars, focusing on scalable execution, risk management, and talent.
- The rollout of OFX 2.0 is expected to drive incremental revenue through a comprehensive ecosystem.
- Management anticipates non-FX revenue contributing over 10% of net operating income by 2028.
- Despite recent earnings misses, the company has the internal cash resources to fund its platform transformation.
- Selector Funds Management continues to hold due to the long-term growth potential of OFX's evolving business model.
Selector Funds Management
31 May 2025
$0.73
Summary
- Selector Funds Management continues to hold its position in OFX Group Ltd due to its strategic focus on expanding its New Client Platform (NCP).
- OFX reported FY25 revenue of $222m, reflecting a 3.4% decline (1% in constant currency).
- Underlying EBITDA decreased by 10.7% to $58m, indicating challenges in the traditional FX business.
- The decline is attributed to weak corporate confidence and uncertainty regarding interest rates.
- Management noted that the New Client Platform has successfully launched for new corporate clients in Australia, with active clients totaling 2,544.
- Non-FX revenue sources, including cards and platform subscriptions, now contribute 27% to the overall revenue mix.
- Plans are in place to accelerate the rollout of the NCP to corporate clients in Canada, U.S., UK, and Europe.
- Migration of existing domestic OFX corporate clients is expected to be completed by the end of FY26.
- Current market capitalisation of OFX stands at $180m.
Salter Brothers
31 May 2025
$0.73
Summary
- Salter Brothers indicated earlier this year that macro-driven issues were affecting OFX.
- In May, OFX released full-year results that were a considerable downside surprise to the market.
- OFX reported significantly lower active customers and volumes, leading to a 5.5% decline in net operating income on a year-over-year basis.
- To address the decline in FX volumes, OFX decided to accelerate the rollout of their NCP product.
- This strategy involves expanding operating expenses by $24 million in FY26 and an additional $5 million in capital expenditures.
- As a result, consensus estimates for EBITDA forecasts for FY26 were reduced from approximately $70 million to $35 million.
- Salter Brothers exited their position in OFX prior to the disappointing results.
- They are actively reviewing the business and its potential to maintain and grow current earnings.
Ellerston Capital
31 May 2025
$0.73
Summary
- May showed a strong performance for OFX, with a share price increase of 27.7% over the month.
- OFX released its FY24 results, highlighting a strong second half.
- Net Operating Income (NOI) was in line with market expectations, indicating stability.
- The company exhibited operating leverage and synergies from the recent Firma acquisition.
- Results exceeded expectations at the EBITDA and NPAT levels.
- Medium-term targets were issued, projecting 10%+ NOI CAGR with underlying EBITDA margins of 28-30%.
- The market has adjusted estimates significantly upwards for the next three years.
- FY25 is anticipated to have political elections and catalysts that may increase FX trading.
- Ellerston Capital continues to hold OFX as a key stock in the Microcap portfolio.
- There is potential for further upside as management executes on their medium-to-long term strategy.
Salter Brothers
28 Feb 2025
$1.20
Summary
- OFX Group LTD (OFX) is under continued downward pressure on share price.
- No financial results reported due to the March year-end reporting period.
- Negative market sentiment attributed to speculation over Trump-era tariffs affecting import/export volumes.
- Concerns regarding FX markets are influencing market perceptions.
- No removal from key ASX indices during the March rebalancing.
- Salter Brothers continues to hold their position while actively reviewing investment thesis.
Selector Funds Management
31 Dec 2024
$1.42
Summary
- Selector Funds Management continues to hold OFX Group due to its strong leadership under CEO Skander Malcolm and CFO Selena Verth.
- Both leaders bring an entrepreneurial spirit, transparency, and resilience, fostering a strong company culture.
- OFX is in a transition phase, aiming to scale its offerings with a new platform for consistent growth.
- The company has a diverse client base of over 1 million, providing 24/7 support across 170+ countries.
- Mergers and acquisitions have shifted OFX's focus from consumer to corporate transactions, enhancing revenue stability.
- With a Total Addressable Market under 1% penetration, there is significant growth potential for OFX.
- The acquisition of Paytron adds a complementary revenue stream and supports the transition to OFX 2.0.
- OFX's New Client Platform (NCP) is expected to deliver higher-margin revenue and consistency in earnings growth.
- Management targets medium-term topline growth of 10% to 15%, with upside potential from NCP performance.
- Recent trading updates show a need for improved consistency, acknowledged by management.
- OFX maintains a strong balance sheet with net cash of $75m and no debt, supporting its growth strategy.
- Capital management focuses on prudent cash use, with no dividends paid but an incremental buyback strategy in place.
Salter Brothers
30 Nov 2024
$1.39
Summary
- Ozforex Group Ltd (OFX) continues to face challenges due to a lack of news flow.
- Market concerns surrounding volatility in international trade markets.
- Impact of Donald Trump's election contributing to market uncertainty.
- Salter Brothers remains confident that the business is not facing any permanent underlying issues.
- The investment team retains confidence in OFX's experienced executive leadership.
- Viewing the reduced valuation as an opportunity to reposition in a high-quality company.
Selector Funds Management
30 Nov 2024
$1.39
Summary
- Selector Funds Management continues to hold their position in OFX Group Ltd.
- For the half, OFX reported net operating income (NOI) of $111.2m, down 3.5%.
- Underlying after tax profit was $13.5m, reflecting a decrease of 21%.
- The softer results were attributed to reduced activity from corporate customers in the UK and Canada.
- This reduction in activity was due to a later than anticipated shift in interest rates and a stronger U.S. dollar.
- Management expects improved second half NOI and underlying operating (EBITDA) margins of 28%, up from 25% in the first half.
- Long-term targets remain unchanged, with management guiding to annualised revenue growth of +15%.
- Operating margin target is circa 30%.
- OFX has a market capitalisation of $323m.
Ellerston Capital
31 Oct 2024
$1.46
Summary
- Ellerston Capital notes that OFX Group faced a challenging month, with shares down over 30%.
- 1H25 Net Operating Income and EBITDA fell below expectations, influenced by slower corporate confidence and later-than-anticipated rate cuts.
- The strong USD negatively impacted average transaction values, particularly in the UK and Canada, which dropped by 22% and 7% respectively.
- Conditions began to improve in October, with early signs from the new corporate client platform showing promise.
- New revenue growth from the platform was nearly 40% compared to the prior period, with non-FX revenue contributing around 50% of total revenue.
- Ellerston Capital believes this growth is crucial for sustaining net operating income growth and achieving operating leverage in the medium term.
- OFX is scheduled to report its first half results in mid-November.
Blackwattle Investment Partners
31 Oct 2024
$1.46
Summary
- OFX Group is a global FX and payments platform for SMB’s and Consumers.
- Share price fell 32% in October due to a downgrade in growth outlook.
- Weakness in activity observed in September contributed to the downgrade.
- Blackwattle Investment Partners used market weakness as an opportunity to increase their position.
- Management provided a positive update on the rollout of a new technology platform.
- This new technology platform has the potential to transform the business.
- OFX is currently trading at ~10x P/E, compared to its historical average of 18x.
- The transformative technology rollout is a primary reason for continued investment.
Salter Brothers
31 Oct 2024
$1.46
Summary
- Salter Brothers notes a significant decline in OFX Group Ltd's share price following a surprising negative trading update in October.
- The trading update contradicted previous optimistic statements regarding company performance.
- The primary impact on OFX stemmed from a decrease in corporate transactions in the UK and Canada as customers delayed purchases.
- This delay was attributed to increased uncertainty surrounding global interest rate changes.
- Despite these challenges, Salter Brothers sees strong growth in Australia, the first market to adopt the new client platform.
- Revenue, including non-FX, reported a 38% increase compared to the previous corresponding period (PCP).
Selector Funds Management
31 Oct 2024
$1.46
Summary
- Selector Funds Management continues to hold its position in OFX Group (OFX) following the recent trading update for H1 2025.
- OFX reported softer than expected Corporate revenue, with declines of 21.8% in the UK and 7.1% in Canada.
- Management attributes the revenue dip to a later than anticipated shift in the interest rate cycle and a stronger U.S. dollar, which has impacted Corporate confidence.
- Net Operating Income (NOI) growth is now expected to be below the previously indicated 10% growth rate from FY24 results.
- Underlying operating profit (EBITDA) margins are forecasted to remain within the guided range of 28%-30%, with an expectation of approximately 28%.
- Management maintains a confident outlook for the long term, targeting 15%+ annual NOI growth and operating margins of around 30%.
- Domestically, the rollout of OFX's new client platform is progressing well, with 40% of new corporate clients utilizing non-FX products/services.
- Non-FX revenue from these new clients comprises around 50% of total revenue.
- OFX aims to migrate existing customers to the new platform by the end of Q1 FY26 and has allocated an additional $1 million for investment to expedite the rollout.
- As of now, OFX has a market capitalisation of $335 million.
Salter Brothers
31 Aug 2024
$2.07
Summary
- Salter Brothers continues to hold confidence in OFX Group Ltd's potential for consistent shareholder value.
- The investment thesis is underpinned by the company's strong market position.
- Management capabilities are highlighted as a key strength in driving value.
- The macro environment has had an impact, with no new news flow following the FY24 results released in May.
Ryder Capital
30 June 2024
$2.20
Summary
- Ryder Capital initiated a ~2.5% position in OFX Group (OFX).
- Investment made at what is perceived as a deep discount to intrinsic worth.
- Recent downgrades contributed to record lows in both price and sentiment.
- Fund manager views current valuation as an attractive entry point.
- Potential for recovery as market sentiment improves.
Selector Funds Management
30 June 2024
$2.20
Summary
- OFX Group is an international payment services provider with solutions for 50+ currencies across 170+ countries.
- Founded in 1998, OFX employs 700+ staff across eight global offices.
- In FY2024, net operating income grew 6.3% to $227.5m, aided by improved pricing arrangements and strong interest income.
- Despite a 3.3% decline in turnover to $38.9b, the net operating income margin expanded from 0.54% to 0.59%.
- OFX's focus on the B2B market has led to its revenue share increasing from 46% in FY19 to 64% in FY2024.
- The B2B segment is highly recurring, with 86% of revenue coming from corporate customers averaging 24 transactions a year.
- The Corporate segment saw a 26.5% increase in new revenue to $18.5m due to investments in customer onboarding.
- Revenue in the Enterprise division increased 33% to $8.1m, supported by existing client usage and new deals in North America.
- OFX has successfully expanded internationally, with 65% of revenue now generated outside Australia.
- The acquisition of Paytron in May 2023 is a significant step towards creating a more valuable service ecosystem for customers.
- OFX 2.0 aims to drive incremental revenue through more frequent transactions and potential new revenue streams.
- Management expects to grow NOI by at least 10% per annum over the next three years, targeting underlying EBITDA margins of 28%-30%.
- Longer-term, OFX anticipates NOI growth of at least 15% per annum with approximately 30% underlying EBITDA margins.
- CEO Skander Malcolm expressed optimism about achieving these goals through organic growth and new revenue contributions.
- OFX currently has a market capitalisation of $528m.
Salter Brothers
31 May 2024
$2.12
Summary
- OFX Group Ltd (OFX) has shown strong performance following its impressive full-year results in May, surpassing market expectations.
- The integration of Firma and Paytron is progressing well, with synergies from Firma exceeding initial targets.
- OFX generated strong cash flows, reporting $60.6M in net cash from operating activities as of March 31, 2024.
- As of the latest update, the company holds $88.0M in net cash.
- The outlook for OFX is promising, with plans to enhance support for B2B clients and introduce new services beyond FX.
- OFX projects a growth in NOI of at least 10% per annum and anticipates an underlying EBITDA margin of 28%-30% over the next three years.
- The Manager’s conviction in OFX's future prospects remains high, continuing to categorize it as one of the core holdings within the fund.
Salter Brothers
31 Mar 2024
$1.57
Summary
- Salter Brothers continues to hold OFX Group Ltd as a core investment.
- OFX, a quality small cap company, has shown positive movement influenced by broader market sentiment.
- The financial year for OFX ends on 31 March 2024.
- There has been limited news flow regarding OFX in recent months.
- Salter Brothers expects the upcoming announcement of the FY24 results and outlook for FY25 to serve as a positive catalyst.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in OFX Group Ltd Fully Paid Ord. Shrs (ASX:OFX)?
Fund managers including Blackwattle Investment Partners, Salter Brothers, Ellerston Capital, Selector Funds Management, Ryder Capital and Forager Funds have invested in OFX Group Ltd Fully Paid Ord. Shrs (ASX:OFX).
Why do fund managers invest in OFX Group Ltd Fully Paid Ord. Shrs?
Fund managers invest in OFX Group Ltd Fully Paid Ord. Shares due to its established position as an international payment services provider and its strategic pivot towards business-to-business offerings. Despite recent financial pressures, including a decline in active customers and net operating income, the rollout of its New Client Platform aims to enhance services and create recurring revenue streams. Additionally, OFX's focus on expanding into underserved markets and innovative product offerings presents potential for growth, appealing to investors seeking exposure in the payment services sector.
What happened to OFX Group Ltd Fully Paid Ord. Shrs (ASX:OFX)?
Fund managers view OFX Group Ltd (ASX:OFX) as a strategic investment due to its proactive management response to macroeconomic challenges, including enhanced risk controls that have begun reducing bad debts. Despite a 9% decline in revenue to $31.3 million, the company’s successful launch of a new client platform and accelerated onboarding of corporate clients, coupled with 80 innovative product features, positions it for improved client acquisition and future growth. With a market capitalization of $137 million, OFX demonstrates resilience and potential despite current market fluctuations.
What is the short interest in OFX Group Ltd Fully Paid Ord. Shrs (ASX:OFX)?
The short interest in OFX Group Ltd Fully Paid Ord. Shrs (ASX:OFX) is 0.47% which makes it the 284th most shorted stock on the ASX. Of the 231.7M shares that OFX Group Ltd Fully Paid Ord. Shrs has on issue, 1.1M have been sold short.
What does OFX Group Ltd Fully Paid Ord. Shrs (ASX:OFX) do?
OFX Group Ltd. engages in providing international payment and foreign exchange services. It also provides international payment solutions to partner companies which assist them to offer international payment services to their end-users. The firm operates through following segments: Consumer, Corporate, Enterprise, and Online Sellers. The company was founded by Matthew Gilmour in 1998 and is headquartered in Sydney, Australia.