Iress launches a comprehensive FY26 business efficiency program targeting a 25% cash EBITDA margin, while narrowing its FY25 guidance and welcoming a new CEO.
- FY26 efficiency program aims to boost cash EBITDA margin to ~25%
- FY25 guidance tightened, Adjusted EBITDA $128m-$132m, UPAT $67m-$71m
- Focus sharpened on Wealth and Trading & Market Data software units
- Investment in AI-enabled capabilities and client solutions prioritized
- New CEO Andrew Russell to start on 17 November 2025
Strategic Streamlining and Margin Ambitions
Iress Limited (ASX – IRE) has announced a decisive business efficiency program for fiscal year 2026, aiming to permanently lift its cash EBITDA margin to approximately 25% by the end of FY26. This marks a significant step up from the expected 19% margin in FY25, reflecting the company’s ongoing transformation into a more focused and streamlined technology provider.
Over the past two years, Iress has divested six non-core businesses, strengthening its balance sheet and concentrating its efforts on two core global enterprise software units – Wealth, and Trading & Market Data. This strategic focus underpins the company’s drive to enhance operating leverage and profitability while positioning itself for sustainable growth.
Efficiency Program Details and Growth Investments
The FY26 program accelerates and expands Iress’ stranded cost-reduction initiatives, targeting enduring structural efficiencies across the group. Importantly, the company plans to maintain this elevated margin level on an ongoing basis, signaling a structurally more efficient operating model rather than a one-off improvement.
Alongside cost discipline, Iress is investing in strengthening its core platforms and developing new revenue channels, including AI-enabled capabilities and enhanced client solutions. This dual approach aims to reinforce client outcomes and improve execution, aligning product, technology, and capital management priorities with shareholder return objectives.
Financial Guidance and Leadership Transition
Confirming and tightening its FY25 guidance, Iress expects Adjusted EBITDA to be between $128 million and $132 million, narrowing from a previous range of $127 million to $135 million. Underlying Profit After Tax is forecasted at $67 million to $71 million, slightly tightening the earlier $65 million to $73 million range. These figures reflect the company’s confidence in its operational momentum despite ongoing investments.
Adding to the company’s narrative of renewal, Andrew Russell will assume the role of Managing Director and CEO on 17 November 2025. His leadership will be closely watched as Iress executes its efficiency program and explores strategic opportunities, including ongoing discussions with multiple parties about potential proposals that could be recommended by the board.
Looking Ahead
Iress’ clear articulation of its margin targets and strategic priorities, combined with a leadership refresh, sets the stage for a pivotal period. The company’s ability to balance cost efficiencies with innovation investments, particularly in AI, will be critical to sustaining growth and shareholder value in a competitive financial software landscape.
Bottom Line?
Iress’ FY26 efficiency push and leadership change signal a new chapter, but execution risks and strategic clarity remain key watchpoints.
Questions in the middle?
- How will the new CEO Andrew Russell influence Iress’ strategic direction and growth initiatives?
- What specific AI-enabled capabilities and client solutions will drive new revenue streams?
- What is the timeline and potential impact of the strategic proposals under board consideration?