The Iress Ltd (ASX: IRE) share price is in focus after the company posted a robust set of half-year results, including a 47.1% jump in continuing business Cash EBITDA to $61.1 million and the interim dividend rising 27.3% to 14.0 cents per share.
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What did Iress Ltd report?
- Continuing business revenue up 2.5% (constant currency) to $250.0 million
- Continuing business Cash EBITDA up 47.1% to $61.1 million; margin expanded to 24.5%
- Statutory NPAT increased 85.0% to $32.0 million
- Underlying profit after tax (UPAT) up 18.4% to $38.8 million
- Fully franked interim dividend of 14.0 cents per share, up 27.3% from the prior period
- Business efficiency program delivered $31.5 million in annualised cost savings
What else do investors need to know?
Iress says its business efficiency program is running ahead of expectations, with significant annualised savings already delivered and more to come in the second half. The company's recurring revenue remains strong, accounting for 95% of group revenue, signifying robust client relationships and a resilient business model.
The company has shifted its strategic focus from simplification to product evolution, including a partnership with Thoughtworks and embedding AI in product and engineering. Iress' balance sheet is also in a healthy position, with leverage down to 0.5x, offering greater flexibility for investment and further capital management initiatives.
What did Iress Ltd management say?
Commenting on the result, Iress' CEO, Andrew Russell, said:
Execution has shifted from simplifying the business to investing in product evolution and sustainable growth. We are evolving our products, accelerating engineering capability and increasing delivery velocity through our partnership with Thoughtworks and the disciplined adoption of AI.
While revenue growth is expected to remain measured in the near term, we are confident in our strategy and in delivering our FY26 Cash EBITDA margin exit run-rate target of 25%. Our focus is on building a higher quality software business with better products, stronger customer relationships and disciplined capital allocation to create sustainable long-term value.
What's next for Iress Ltd?
Looking ahead, Iress plans to increase investment in product development in the second half, with a particular focus on evolving its AI capabilities and accelerating improvements to its Xplan software suite. Management's priorities remain on operational excellence, customer-led delivery, and supporting sustainable long-term growth.
Updated FY26 guidance now points to slightly softer revenue growth of 1–2%, but higher Cash EBITDA growth of 21–26% and UPAT up 15–21%, reflecting successful structural business improvements. The company is maintaining its target for a 25% Cash EBITDA margin exit run-rate.
Iress Limited share price snapshot
The Iress share price has been out of form over the past 12 months, trailing the S&P/ASX 200 index (ASX: XJO) by some distance with a decline of around 13%.
