Iress (IRE) H1 2026 earnings summary

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 ahead of plan, delivering $31.5m in annualized savings and strengthening the balance sheet, enabling self-funded investment in product evolution.

• 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, reflecting stronger earnings and financial position.

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% year-over-year to $61.1m; margin expanded by 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% year-over-year to $181.4m, driven by efficiency initiatives.

• CapEx materially lower in the first half, with full-year CapEx expected to be 20%-25% lower than prior year, but to increase in 2H26 as product investment accelerates.

Outlook and guidance

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

• Cash EBITDA outlook raised to $121–126 million (21%-26% growth); UPAT expected at $84–88 million.

• On track to deliver FY2026 cash EBITDA margin exit run rate of 25%.

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

• FY26 guidance reflects 6-8% AUD appreciation, impacting reported results; reported revenue expected between $499-505m.