Integrated Research (IRI) H1 2025 earnings summary

Executive summary

• New business revenue grew 76% year-over-year to $7.6 million, reflecting progress in a product-led growth strategy and offsetting some impact from a weaker renewals book.

• Statutory revenue declined 29% year-over-year to $28.8 million, with net profit after tax down 59% to $4.6 million, driven by soft contract renewals.

• EBITDA fell 58% year-over-year to $4.6 million, while pro forma EBITDA rose 53% to $11.8 million, aided by $3.3 million in non-operating gains from FX and asset sales.

• Major product progress included the launch of High Value Payments and securing a major US bank as a foundation client on a five-year contract.

Financial highlights

• Total contract value (TCV) for H1 FY25 was $26.5 million, down 36% year-over-year, with new business TCV up 76% to $7.6 million.

• Pro forma revenue was $36.6 million, down 2% year-over-year, with 89% term-based revenue.

• Net cash at December 31, 2024, was $31.1 million, flat year-over-year, with $3.5 million dividend paid and $1.3 million in non-recurring costs.

• NTA per share was 51.8 cents; no debt on balance sheet.

• Operating cash flow for the half was $0.5 million, down from $3.4 million in the prior period.

Outlook and guidance

• Renewals book for FY25 remains softer than FY24 and is weighted to the second half.

• Targeting a return to sustainable pro forma revenue growth over the medium term (up to three years), leveraging a product-led strategy.

• Go-to-market refresh underway in Europe following global realignment.

• Future dividend decisions will be made after annual results are available.