Iress (IRE) investor relations material

Executive summary

• Delivered a strong first half with improved earnings quality, significant margin expansion, and disciplined execution, supported by business efficiency initiatives and a simpler operating model.

• Business efficiency program delivered AUD 31.5m in annualized savings, strengthening the balance sheet and enabling self-funded investment in product evolution; further AUD 6m–9m in efficiencies targeted for 2H26.

• Strategic focus shifted to product evolution, embedding AI into product and engineering strategy, and accelerating delivery through a partnership with Thoughtworks.

• Updated FY2026 guidance: softer revenue growth (1%-2%) due to lower non-recurring revenue, but higher Cash EBITDA growth (21%-26%) from stronger profitability.

• Declared a fully franked interim dividend of 14.0 cents per share, up 27.3% year-over-year.

Financial highlights

• Revenue from continuing business up 2.5% year-over-year to $250.0m; recurring revenue up 3.4% and now 95% of total revenue.

• Cash EBITDA increased 47.1% to $61.1m, with margin expanding over 740 basis points to 24.5%.

• Statutory NPAT rose 85% year-over-year to $32.0m; underlying profit after tax up 18.4% to $38.8m.

• Operating expenses fell 22.8% to $181.4m, driven by efficiency initiatives.

• Interim dividend up 27.3% to 14.0 cps, fully franked.

Outlook and guidance

• FY2026 revenue expected at $509m–$515m (1%-2% growth), reflecting lower non-recurring revenue.

• Cash EBITDA outlook raised to $121m–$126m (21%-26% growth); UPAT expected at $84m–$88m; margin exit run-rate of 25% remains on track.

• CapEx to increase in 2H26 as product evolution accelerates; full-year CapEx expected to be 5%-7% of revenue.

• FY26 guidance reflects 6-8% AUD appreciation, impacting reported results.

• Additional $6–9m in annualized cost efficiencies targeted for 2H26, with full benefit expected in FY27.