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 Adjusted EBITDA at AUD 136.2 million and UPAT at AUD 73.9 million, up 16.6% year-over-year.

• Revenue from continuing business grew 6.5% year-over-year to AUD 504.3 million, with margin expansion and robust performance in core segments.

• 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% 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 AUD 0.39.

• Statutory NPAT decreased 10.6% to AUD 79.3 million due to lower divestment gains.

Outlook and guidance

• FY26 revenue expected between AUD 520 million–AUD 528 million.

• Cash EBITDA guidance for FY26 is AUD 116 million–AUD 123 million; UPAT expected at AUD 84 million–AUD 90 million.

• Exit run rate cash EBITDA margin of 25%+ targeted by Q4 FY26.

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

• Ongoing investment in platform modernisation and further business efficiency gains expected.