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Highlights

  • IRE's 1H25 underlying EPS from continuing business increased 19% compared to the prior corresponding period.

  • Proceeds from divestments, including the Superannuation business, reduced leverage ratio to 0.8x.

  • FY25 Adjusted EBITDA guidance maintained at AUD 127–135 million, with UPAT forecast at AUD 65–73 million.

Iress Limited (ASX:IRE) has announced its financial results for the six months ended 30 June 2025, delivering statutory net profit after tax (NPAT) of AUD 17.3 million, unchanged from the prior year. Reported revenue was AUD 299.5 million, down 3.1% from 1H24, reflecting the impact of divestments completed during the period, including the sale of the Superannuation business in May 2025.

On a continuing business basis, which excludes contributions from divested assets, revenue increased 6.8%, driven by growth in the UK operations and performance from the Global Trading & Market Data business. APAC Wealth revenue declined slightly due to a client business restructure in mid-2024.

Earnings and Costs
Adjusted EBITDA for the half was AUD 64.4 million, 3.9% lower than 1H24. Excluding divested businesses, continuing business Adjusted EBITDA was AUD 60.2 million, an increase of AUD 4.8 million or 8.7% year-on-year, supported by pricing improvements, productivity gains, and efficiency measures.

Operating costs were AUD 235.1 million, 2.9% lower than the prior corresponding period due to reduced headcount and tighter management of non-wage expenses. On a continuing business basis, costs increased 6.2%, reflecting higher research and development investment in next-generation wealth technologies for the unadvised market.

Transformation and Balance Sheet
Iress completed its transformation program during the half, with asset sales aimed at streamlining the business and focusing on core operations. In addition to the Superannuation business divestment, the company entered into a binding agreement to sell QuantHouse, with completion expected in the third quarter of 2025.

Proceeds from the Superannuation sale were applied to debt repayment, reducing the company’s leverage ratio to 0.8x, down significantly from the prior year.

Dividend
The Board declared an interim dividend of 11.0 cents per share, 50% franked, representing a payout ratio of 62% for the half year. The dividend will be paid on 22 September 2025 to shareholders on record as at 25 August 2025.

Outlook
Iress reaffirmed its FY25 guidance, with Adjusted EBITDA forecast in the range of AUD 127 million to AUD 135 million and underlying profit after tax (UPAT) between AUD 65 million and AUD 73 million. The company stated that growth in its core businesses is expected to offset the loss of contribution from divested businesses and increased investment in research and development.

For the remainder of FY25, Iress plans to continue strategic investment in its core offerings, develop complementary new products, and expand partnerships in data and AI to capture additional revenue streams. The company also intends to maintain its focus on initiatives aimed at enhancing customer experience.