Infomedia Ltd reported a solid FY25 with revenue up 4% and NPAT soaring 32%, while advancing AI initiatives and securing a takeover offer from TPG Capital.
- Total revenue rises 4% to $146.5 million
- NPAT jumps 32% to $16.7 million; NPATA up 6%
- Recurring revenue accounts for 99% of total
- Final fully franked dividend declared at 2.0 cents per share
- TPG Capital proposes $1.72 per share acquisition
Robust Financial Performance Amid Challenging Conditions
Infomedia Ltd (ASX – IFM) has delivered a commendable set of full-year results for FY25, demonstrating resilience and growth in a complex macroeconomic environment. The company reported total revenue of $146.5 million, marking a 4% increase over the prior year, driven predominantly by its recurring revenue stream which now constitutes 99% of total revenue. This steady growth underscores Infomedia’s strong foothold in the automotive data and software-as-a-service (SaaS) market.
Underlying cash EBITDA rose 7% to $35.2 million, with margins improving by one percentage point to 24%, reflecting operational efficiencies and disciplined cost management. Net profit after tax (NPAT) surged 32% to $16.7 million, while the adjusted NPATA metric, which excludes certain non-cash items, increased by 6% to $22.1 million. Earnings per share followed suit, with a 31% increase to 4.44 cents, and adjusted earnings per share up 6% to 5.88 cents.
Strategic Advances and Operational Highlights
CEO Jens Monsees highlighted several key operational achievements, including renewed leadership in the EMEA and Americas regions and successful integration of SimplePart and Microcat platforms, which enhanced operating efficiency. The company also secured major contract renewals spanning three to five years, incorporating price increases that support sustainable revenue growth.
Infomedia’s commitment to innovation is evident in its AI strategy, particularly through its 50% acquisition of Intellegam. The partnership has already yielded initial joint contracts and is developing four AI solutions slated for launch in the second quarter of FY26. This move signals Infomedia’s intent to leverage artificial intelligence to deepen its competitive edge and expand its product offerings.
Future Outlook and Growth Initiatives
Looking ahead, Infomedia plans to re-platform its Infodrive CX technology stack by February 2026 to enable global scalability and enhance automation across enterprise systems. The company aims to broaden its market reach by expanding existing products into new segments and accelerating its global footprint. For FY26, Infomedia has provided revenue guidance between $152 million and $159 million, contingent on stable macroeconomic conditions.
Acquisition Proposal Adds New Dimension
Adding a significant development to the narrative, Infomedia has entered into a Scheme Implementation Agreement with TPG Capital, which has offered to acquire 100% of the company’s shares at $1.72 per share. This proposed acquisition introduces a new layer of strategic possibilities and potential shareholder value realization, though details on the process timeline and approvals remain forthcoming.
With a robust balance sheet boasting $85 million in cash and no debt, Infomedia is well-positioned to navigate the transition phases outlined by management, balancing organic growth with potential structural changes prompted by the acquisition offer.
Bottom Line?
Infomedia’s strong FY25 performance and AI-driven innovation set the stage for growth, even as the TPG acquisition looms.
Questions in the middle?
- How will the TPG Capital acquisition impact Infomedia’s strategic direction and independence?
- What are the specifics and expected market impact of the four AI solutions under development with Intellegam?
- How will the re-platforming of Infodrive CX influence customer experience and operational scalability?