REA Group Ltd's stock experienced a sharp decline of 13.33% during intraday trading on Friday. The significant drop followed the release of the company's fiscal first-half financial results.
The company reported earnings per share of AU$2.545 for the six months ended December 31, 2025, which represents a decrease from AU$3.339 reported in the same period a year earlier. This result fell short of the AU$2.64 per share anticipated by analysts surveyed by FactSet. Furthermore, while revenue increased year-over-year to AU$915.8 million, it also missed the analyst consensus estimate of AU$927 million.
Alongside the earnings report, REA Group announced an increased interim dividend of AU$1.24 per share and plans for an on-market share buy-back of up to AU$200 million. However, the market reaction was dominated by the earnings and revenue miss against expectations.