Highlights

  • Iress reported 1H26 statutory net profit of AUD 32.0 million, up from AUD 17.3 million a year earlier.
  • Cash EBITDA rose to AUD 61.1 million from AUD 42.5 million, lifting the Margin to 24.5% from 17.0%.
  • Recurring revenue reached AUD 237.8 million and represented about 95% of continuing-business revenue.
  • The interim fully Franked Dividend increased to 14 cents per share, while Leverage remained low at 0.5 times.

Iress (ASX:IRE) delivered one of the clearest signs yet that its multi-year simplification programme is improving profitability. First-half statutory profit rose sharply and cash EBITDA margins expanded by more than seven percentage points. Revenue growth, however, remained subdued and full-year revenue guidance was trimmed, leaving the next stage of the turnaround dependent on whether the company can move from cost-led improvement toward sustainable top-line growth.

Margins Improve as Cost Savings Build

Iress reported statutory net profit of AUD 32.0 million for the six months to 30 June 2026, up from AUD 17.3 million. Underlying net profit rose to AUD 38.8 million, while cash EBITDA increased to AUD 61.1 million from AUD 42.5 million.

The cash EBITDA margin reached 24.5%, compared with 17.0% a year earlier. Annualised cost savings stood at AUD 31.5 million by the end of June, with another AUD 6-9 million targeted in the second half.

Revenue Is Stable Rather Than Accelerating

Continuing-business revenue was AUD 250.0 million, only slightly above AUD 249.4 million in the prior corresponding period. On a constant-currency basis, growth was about 2.5%.

Recurring revenue reached AUD 237.8 million, representing roughly 95% of total continuing-business revenue. This high recurring component supports Earnings visibility, but non-recurring revenue declined and contributed to the lower full-year revenue outlook.

XPlan Remains a High-Margin Franchise

APAC Wealth generated AUD 68.2 million of revenue and AUD 24.5 million of cash EBITDA, producing a 36.1% margin. Global Trading and Market Data remained the largest revenue contributor, while UK Wealth and Sourcing reported softer revenue but higher cash EBITDA.

The company is also progressing platform modernisation, including a Partnership with Thoughtworks announced in May.

Balance Sheet Supports the Turnaround

Net Debt was AUD 70.2 million, equivalent to leverage of 0.5 times, with AUD 125 million of undrawn facilities. The board increased the interim fully franked dividend to 14 cents per share from 11 cents.

The stronger Balance Sheet gives Iress capacity to invest in product development while continuing to return Capital to shareholders.

What to Watch

The key measures are delivery of the 25% cash EBITDA margin exit run-rate, second-half capex, Recurring Revenue growth and further cost savings. Evidence that revenue growth is reaccelerating would strengthen the next phase of the turnaround.

Risks

Iress faces the risk that cost savings reach their limit before revenue growth improves. Currency movements, competition in wealth software and higher second-half Capital Expenditure could also pressure reported earnings and cash flow.