What Does Iress Ltd (ASX:IRE) Report in Its 2026 Half-Year Results and Updated Guidance?

Sonal Goyal

19 October 2026 05:00 PM AEDT

What Does Iress Ltd (ASX:IRE) Report in Its 2026 Half-Year Results and Updated Guidance?

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Key Highlights

Iress reported 1H26 continuing business revenue of $250.0 million, up 2.5% in constant currency, and Cash EBITDA of $61.1 million, up 47.1%.
Statutory NPAT was $32.0 million and underlying profit after tax was $38.8 million, up 18.4%.
A fully franked interim dividend of 14.0 cents per share was declared, and FY26 revenue growth guidance is now 1% to 2%.

Iress Ltd (ASX:IRE) shares were priced at $5.485 during the trading session on 19 October 2026, up 0.09%. Iress provides software for the financial services industry, including wealth management and trading platforms. On 17 August 2026, the company released its half-year results for the six months ended 30 June 2026 (1H26), which cover financial results, an efficiency program, an interim dividend, a partnership with Thoughtworks and updated FY26 guidance. The price data relates only to the 19 October 2026 session and is separate from the release date.

1H26 financial results

Statutory NPAT was $32.0 million, up 85.0% on 1H25, and underlying profit after tax was $38.8 million, up 18.4%. Continuing business revenue was $250.0 million, up 2.5% in constant currency, and recurring revenue was $237.8 million, up 3.4%, representing 95% of group revenue.

Continuing business Cash EBITDA was $61.1 million, up 47.1% in constant currency, with the margin expanding more than 740 basis points to 24.5%. The company attributed the change to higher revenue, its efficiency program and lower capital expenditure. Leverage was 0.5 times at 30 June 2026.

Dividend and efficiency program

The Board declared a fully franked interim dividend of 14.0 cents per share, 27.3% higher than the prior corresponding period.

The business efficiency program has delivered $31.5 million of annualised cost savings, which the company described as ahead of plan, and a further $6 million to $9 million is expected in the second half of 2026.

Strategy and updated guidance

The company stated that its focus has shifted from simplifying the business to product evolution and growth. The release refers to a partnership with Thoughtworks, which has been mobilised, and the embedding of AI across engineering and product development, including the next stage of Xplan capabilities.

Updated FY26 constant currency guidance for the continuing business is revenue growth of 1% to 2% on lower non-recurring revenue, Cash EBITDA growth of 21% to 26% and underlying profit after tax growth of 15% to 21%. The company reaffirmed a Cash EBITDA margin exit run-rate target of 25% for FY26.

Scope of the continuing business and balance sheet

The release defines the continuing business as APAC Wealth, GTMD and UK Wealth & Sourcing, and presents growth rates on a constant currency basis using FY25 average exchange rates. Statutory NPAT of $32.0 million compares with underlying profit after tax of $38.8 million, which the company describes as its preferred profitability measure.

Leverage of 0.5 times at 30 June 2026 gives the company capacity, as described in the release, to self-fund product investment while retaining optionality for future capital management initiatives. The company also stated that the Thoughtworks partnership has been mobilised and that AI is being embedded across product and engineering.

Sector backdrop

Software providers to wealth managers, advisers and brokers generally earn most of their revenue from recurring subscriptions and are assessed on revenue retention, margins and product investment. Many have restructured portfolios or introduced efficiency programs in recent years, and the release describes Iress as a simpler business after completing its simplification. AI adoption and technology partnerships feature in strategy updates across the sector as providers aim to lower development costs and update ageing platforms.

Risks shareholders should weigh

The press release and the wider operating environment point to several considerations that shareholders may wish to weigh:

Revenue growth guidance is 1% to 2%, described as softer than before and linked to lower non-recurring revenue.
The company says product investment will increase in the second half of 2026 as delivery accelerates, which can affect margins and cash flow.
Guidance is presented on a continuing business and constant currency basis using FY25 average exchange rates, so reported figures can differ.
Cost savings of a further $6 million to $9 million are expected rather than delivered.
The product evolution program relies on execution with a technology partner and on customer adoption of updated platforms.

What's next

The company reaffirmed its FY26 Cash EBITDA margin exit run-rate target of 25% and expects further cost savings of $6 million to $9 million in the second half. Its strategic priorities for the second half are operational excellence, product evolution, AI-enabled productivity and customer-led execution. The release also states that the balance sheet provides optionality for future capital management initiatives.

FAQs

Q: What was Iress's 1H26 Cash EBITDA?

A:Continuing business Cash EBITDA was $61.1 million, up 47.1% in constant currency, with a margin of 24.5%.

Q: What interim dividend did Iress declare?

A:A fully franked interim dividend of 14.0 cents per share, 27.3% higher than the prior corresponding period.

Q: What is the updated FY26 guidance?

A:Revenue growth of 1% to 2%, Cash EBITDA growth of 21% to 26% and underlying profit after tax growth of 15% to 21%, in constant currency.

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