REA Group's Resilient Growth in a Shifting Market: A Deep Dive into Q3 2025 Results

The real estate tech sector has long been a barometer of broader economic health, and REA Group—Australia’s dominant digital property platform—is no exception. In its fiscal third quarter (Q3) 2025 results, REA demonstrated resilience amid shifting macroeconomic conditions, with revenue growth outpacing expectations. Let’s dissect the numbers, the drivers, and what this means for investors.

Revenue Growth: A Tale of Two Reports

REA’s standalone update highlighted a 12% quarterly revenue rise, fueled by lower interest rates that reignited buyer confidence and pushed house prices upward. For the nine-month period ending March 2025, revenue surged 18% to $1.247 billion, with EBITDA (excluding associates) climbing 19%. These figures underscore the company’s ability to capitalize on cyclical market shifts.

However, News Corporation’s Q3 results—which include REA as part of its Digital Real Estate Services segment—paint a slightly different picture. REA reported $271 million in revenue for the quarter, a 6% YoY increase, with 5% of growth lost to currency headwinds (primarily the Australian dollar’s strength). When adjusted for currency, underlying growth was stronger, driven by price hikes, deeper market penetration in Australia, and contributions from REA India, its expanding venture in the subcontinent.

The Drivers: Interest Rates, Platforms, and Global Ambitions

1. Australian Residential Market Dominance:
   REA’s core business remains its Australian platforms, particularly realestate.com.au, which posted record audiences and widened its lead over competitors. In key markets like Sydney, buy listings rose 4%, offsetting softer demand in Melbourne. This geographic diversification and platform stickiness are critical in a fragmented market.

2. Interest Rate Cuts and Buyer Activity:
   The Reserve Bank of Australia’s recent rate reductions injected liquidity into the housing market, boosting buyer demand. REA’s listings data acts as a real-time indicator of this activity, with increased engagement translating directly into revenue through advertising and subscription services.

3. Global Expansion and Cost Efficiency:
   REA India contributed meaningfully to growth, while cost-cutting at subsidiary Move (a U.S. real estate tech firm under News Corp) improved segment EBITDA by 19% overall. Adjusted for currency, this figure jumps to 25%, highlighting operational discipline.

Currency Headwinds and Strategic Focus

While currency fluctuations dented reported figures, they also underscore REA’s global footprint—a double-edged sword. The company’s focus on enhancing user experience through AI-driven property recommendations and streamlined owner tools has kept engagement high. This tech-led strategy isn’t just about attracting buyers; it’s about monetizing every touchpoint in the property lifecycle.

Conclusion: A Strong Foundation, but Challenges Lurk

REA Group’s Q3 results are a testament to its execution in a transitioning market. With 18% annualized revenue growth and 25% adjusted EBITDA expansion (excluding currency), the company is solidifying its position as a tech-driven real estate leader. Its dominance in Australia’s listings market—bolstered by realestate.com.au’s record traffic—creates a high barrier to competition.

Yet risks remain. Currency fluctuations could continue to weigh on results, and while REA India shows promise, scaling in new markets requires sustained investment. Investors should also monitor broader housing trends: if interest rates reverse course or affordability constraints bite, REA’s growth could stall.

For now, the data speaks to a company thriving in its core market while diversifying risks. With $1.247 billion in revenue and a robust balance sheet, REA Group is a compelling bet for investors willing to ride the real estate tech wave.

Final Take: REA’s Q3 performance isn’t just about numbers—it’s a reflection of its adaptability. In a sector where platform scale and data depth matter most, REA’s lead is widening. For the long term, that’s a bullish sign.