Iress (IRE) H1 2025 earnings summary

Executive summary

• Strong 1H25 performance in core wealth and trading segments, with underlying EPS up 19.2% and revenue for continuing operations up 6.8% year-over-year.

• Transformation program completed, with divestment of non-core assets and a streamlined, capital-light business model.

• Interim dividend of 11.0 cents per share (50% franked) declared, resuming payouts after transformation.

• Proceeds from asset sales used to reduce net debt to $92.6 million and leverage to 0.8x, enhancing financial flexibility.

• Early engagement with potential acquirers for a possible sale of the Group announced post-period end.

Financial highlights

• Continuing business revenue up 6.8% year-over-year to $249.4 million, driven by strong UK and Trading & Market Data performance.

• Adjusted EBITDA for continuing business rose 8.7% to $60.2 million, with margin up to 24.1%.

• Underlying profit after tax (UPAT) and underlying EPS both increased by about 19% year-over-year.

• Statutory NPAT for the group was $17.3 million, unchanged from the prior year.

• R&D investment increased, with OpEx and CapEx supporting new product development and organic growth.

Outlook and guidance

• FY25 guidance reaffirmed: adjusted EBITDA of $127m–$135m and UPAT of $65m–$73m for continuing business.

• Revenue growth expected to accelerate to 6%-8% over the next three to five years, with EBITDA margins targeted at 26%-27% by 2028.

• Ongoing cost management and stranded cost program to deliver $12–$16 million in annualized savings over two years.

• R&D CapEx to rise to 5%-7% of revenue, supporting innovation and product launches.

• Board remains committed to sustainable dividends and strategic growth.