Iress Reports 6.8% Revenue Growth and 0.8x Leverage in 1H25

Strong Half-Year Performance Amid Strategic Transformation

Iress Limited has delivered a compelling first half of 2025, showcasing the benefits of its recent strategic streamlining. The company’s continuing business posted a 6.8% increase in revenue to $249.4 million and an 8.7% rise in adjusted EBITDA to $60.2 million, underscoring solid operational momentum. Underlying earnings per share surged 19.2% to 16.7 cents, reflecting both top-line growth and disciplined cost management.

This performance comes on the back of divesting six non-core assets for a combined $271 million, a move that has materially strengthened Iress’s balance sheet. The proceeds were used to reduce net debt by $192 million over the past year, bringing leverage down to a conservative 0.8 times EBITDA. This improved financial flexibility positions the company well for reinvestment and shareholder returns.

Focused Growth in Core Markets and Technologies

Iress’s core segments, Global Trading & Market Data (GTMD) and UK Wealth & Sourcing, drove much of the growth, with GTMD revenue up 7.8% and UK Wealth increasing 12.1%. The APAC Wealth division showed signs of stabilizing after client restructuring, with revenue trends improving sequentially. The company continues to invest heavily in research and development, particularly in new wealth technology products and next-generation trading platforms, including cloud-native execution management systems and AI-driven advice tools.

The company’s strategy to leverage its leadership in trading and wealth technology across Australia, the UK, South Africa, and Canada is supported by strong client retention, over 90% of top clients have been with Iress for more than a decade, and a high recurring revenue base of 94%. These factors underpin confidence in sustained growth amid evolving regulatory environments and increasing demand for data-driven financial solutions.

Cost Efficiency and Strategic Reinvestment

Alongside growth, Iress is executing a ‘stranded cost’ reduction program aimed at cutting $12 to $16 million annually from its corporate cost base by fiscal 2027. These savings will be reinvested into growth initiatives, including expanding product offerings and accelerating innovation. The program aligns with the completion of transitional service agreements related to divested businesses and supplier renewals, enabling operational efficiencies without compromising strategic investments.

Dividend payments have resumed with an interim dividend of 11.0 cents per share, representing a 62% payout ratio, signaling management’s confidence in the company’s cash flow generation and financial health. The FY25 guidance was reaffirmed, with adjusted EBITDA expected between $127 million and $135 million and underlying profit after tax forecasted between $65 million and $73 million.

Outlook – Positioned for Tailwinds and Innovation

Looking ahead, Iress is well positioned to capitalize on significant market tailwinds, including regulatory changes expanding advice access in Australia and the UK, and a growing demand for AI-enhanced trading and wealth management solutions. The company’s strategic focus on data, trusted client relationships, and global presence in regulated markets provides a strong foundation for organic growth and innovation.

With a clear roadmap for self-funded growth and a strengthened balance sheet, Iress is navigating its post-transformation phase with a balance of prudence and ambition, aiming to deliver sustained shareholder value in a competitive fintech landscape.