Iress (IRE) H2 2025 earnings summary

Executive summary

• FY 2025 results exceeded guidance, driven by business simplification and focus on Wealth, Trading, and Market Data software, with Adjusted EBITDA at AUD 136.2 million and UPAT at AUD 73.9 million, up 16.6% year-over-year.

• Asset sales, including Superannuation and QuantHouse, strengthened the balance sheet, reduced leverage to 0.5x, and enabled dividend reinstatement.

• Dividend payments resumed, with a fully franked final dividend of 13.0 cps.

• Operational momentum improved across all segments, with notable execution in mission-critical trading infrastructure.

• Clear pathway established for higher margins and improved cash generation.

Financial highlights

• Continuing Business revenue grew 6.5% year-over-year to AUD 504.3 million, while Group revenue declined 7.1% to AUD 561.7 million due to divestments.

• Adjusted EBITDA for Continuing Business rose 14.9% to AUD 132.6 million, with margin expanding to 26.3%.

• UPAT for Continuing Business increased 34.3% to AUD 72.8 million; Group UPAT up 16.6% to AUD 73.9 million.

• Underlying EPS for Continuing Business up 34.2% to 39.0 cps.

• Net debt reduced to AUD 66 million, leverage at 0.5x, and total dividend for FY 2025 at AUD 0.24 per share (61% payout ratio).

Outlook and guidance

• FY 2026 revenue expected between AUD 520 million–AUD 528 million; cash EBITDA between AUD 116 million–AUD 123 million.

• UPAT guidance for FY 2026 is AUD 84 million–AUD 90 million, with a Q4 exit run rate cash EBITDA margin of 25%+.

• Ongoing CapEx investment in platform modernization at similar levels to FY 2025.

• Focus on staged margin expansion, sustainable revenue growth, and disciplined execution.

• Ongoing investment in business efficiency and platform modernisation expected.