AU1 Surges Ahead with $2.6bn Quarter as East Coast Powers Growth

The December quarter update from national property player The Agency Group Australia (ASX:AU1) reads like a sales brochure that actually delivers - with double-digit growth across all key operational metrics and an ambitious eye toward even bigger targets in 2026.

For the three months ending 31 December 2025, The Agency posted $29.7 million in revenue, a 17.2% year-on-year increase, while Gross Commission Income (GCI) surged 41.4% to $44.3 million. That jump wasn’t just a statistical quirk. It was underpinned by $2.6 billion in gross property sales value - a 40.2% increase on the prior corresponding period - and 1,915 settled sales, up 14%.

East Coast ascends while WA plays catch-up

The standout geographical contributor was the East Coast, which delivered $1.7 billion of those sales - a thumping 69% increase on the December 2024 quarter. New South Wales alone made up about $1.3 billion of that tally. Victoria and Queensland also kicked in strongly, with YoY transaction volumes rising 67% and 64% respectively.

In contrast, Western Australia continues to wrestle with tight housing supply. Sales there totalled $939.6 million, up just 8% from the prior year, while listings nationally remained largely flat at 1,825, with WA’s constrained volumes offsetting East Coast improvements.

This geographical imbalance underscores the benefits of a national footprint - a theme that Executive Director Paul Niardone was keen to highlight.

“With a $150 million GCI run-rate, a growing circa $10 million pipeline and improving market depth across the East Coast, we are well positioned to continue building scale, strengthening our brand of choice position and delivering sustainable earnings growth through FY26 and beyond,” Niardone said.

Agents, managements, and milestones

Agent headcount grew to 474 by quarter-end - up from 442 in June - with the company’s direct engagement model continuing to attract high performers looking for more control and better economics than traditional franchises can offer.

Meanwhile, property management also grew handsomely. The Agency now manages 12,413 properties, of which 5,499 are owned directly and 6,914 sit under service agreements. That's a 17.4% jump overall - including a 33% rise in the service agreement portfolio, which is typically less capital-intensive.

The business has hit its initial FY26 GCI run-rate target of $150 million - a figure flagged back in August and reiterated in the September quarterly update. Now, eyes are set on the next milestone: $175 million. The group reports a $10 million pipeline of annualised GCI from prospective agents already on the radar, offering clear visibility toward that next goalpost.

The march toward $175 million follows a five-year climb from $38.6 million in FY19, with the agent cohort growing from 272 to 474 over the same period.

Market landscape - tight in the west, deeper in the east

The broader market dynamics underpinning AU1’s performance are a tale of two coasts. WA remains characterised by historically low listing volumes, buyer competition that’s still red-hot, and sellers showing little urgency. Price strength persists, but supply simply isn’t keeping pace with demand.

On the East Coast, particularly in Victoria and Queensland, the picture is more balanced. Increased listings and stock levels have deepened the market, albeit with slightly moderated price momentum - perhaps a more sustainable backdrop for transaction growth as the year progresses.

Strategic footing and outlook

AU1 now ranks as the 9th largest residential agency by market share nationally - and notably, it’s the only one in the top ten that doesn’t rely on a franchise model. For a business that was flying under the radar not too long ago, that’s no small feat.

Importantly, the company is no longer just winning market share - it’s also converting that scale into operating leverage. According to the company, the first $25 million increment in new-agent GCI (if realised) is expected to contribute roughly $3 million in additional EBITDA margin - a not insignificant boost given the lean platform economics AU1 operates under.

The strategic focus from here is clear: continue scaling on the East Coast, support agents through investment in tech and training, and maintain dominance in WA while patiently waiting for that supply thaw.

The Agency’s growth story may not be a classic overnight success, but it’s certainly shaping up as a tale of disciplined national ambition paying off. As the business eyes a $175 million GCI run-rate and plots a path toward $200 million, the next few quarters could prove pivotal.

For now, shareholders can take comfort in the company’s ability to not only grow, but grow while strengthening margins - a rare combo in today’s real estate environment.