Iress (IRE) H2 2025 earnings summary

Executive summary

• FY25 results exceeded guidance, driven by business simplification and focus on Wealth, Trading, and Market Data software segments, with strong operational execution and cost discipline.

• Adjusted EBITDA for Continuing Business reached AUD 132.6 million, up 14.9% year-over-year, and UPAT was AUD 73.9 million, up 16.6%.

• Divestments of superannuation and QuantHouse completed, proceeds used to reduce debt and strengthen the balance sheet, lowering leverage to 0.5x.

• Dividend reinstated, with a fully franked final dividend of AUD 0.13 per share, total FY25 dividend AUD 0.24 per share (61% payout ratio).

• Strategy for FY26 centers on product-led execution, capital discipline, customer focus, and accelerated business efficiency.

Financial highlights

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

• Adjusted EBITDA margin for Continuing Business expanded by 192 basis points to 26.3%.

• Underlying EPS for Continuing Business up 34.2% to 39.0 cps; Group Underlying EPS up 16.4% to 39.6 cps.

• Net debt reduced to AUD 66 million as of December 31, leverage at 0.5x, over AUD 250 million lower than two years ago.

• Statutory NPAT was AUD 79.3 million, down 10.6% year-over-year due to lower divestment gains.

Outlook and guidance

• FY26 revenue guidance: AUD 520–528 million (+3–5% vs FY25); Cash EBITDA: AUD 116–123 million (+15–23% vs FY25); UPAT: AUD 84–90 million (+15–24% vs FY25).

• Exit run-rate Cash EBITDA margin above 25% targeted by Q4 FY26.

• CapEx investment to remain at similar levels to FY25, supporting ongoing platform modernization.

• Business efficiency program targeting AUD 30 million in annualized cost reductions by end of FY26, with ~60% already achieved.