Iress Limited reported a 7.4% revenue decline to $556.3 million for FY25 but achieved a 21.5% rise in profit before tax, declaring a fully franked final dividend of 13 cents per share. The company sharpened its focus on core Wealth and Trading software businesses while advancing sustainability and AI innovation.
- 7.4% revenue decrease to $556.3 million
- 21.5% increase in profit before income tax to $109.2 million
- 10.6% decline in net profit attributable to members to $79.3 million
- Final dividend of 13 cents per share, 100% franked
- Strategic divestments and debt refinancing strengthen balance sheet
Financial Performance Overview
Iress Limited closed its 2025 financial year with mixed results, reporting a 7.4% decline in revenue to $556.3 million, primarily due to the divestment of non-core assets including its Superannuation and QuantHouse businesses. Despite this, the company delivered a robust 21.5% increase in profit before income tax to $109.2 million, reflecting improved operational efficiency and reduced financing costs.
Net profit attributable to members fell by 10.6% to $79.3 million, influenced by non-cash amortisation and divestment-related adjustments. The company declared a final fully franked dividend of 13 cents per share, signaling confidence in its financial position and cash flow generation.
Strategic Focus and Business Simplification
During FY25, Iress completed a significant portfolio simplification, exiting several non-core businesses to concentrate on its core Wealth and Trading & Market Data software segments. Continuing operations demonstrated resilience, with a 6.5% revenue increase and a 14.9% rise in Adjusted EBITDA on a continuing basis, underscoring the strength of the company’s strategic focus.
The company also refinanced its debt facilities, reducing net debt by $45.3 million and lowering interest expenses. This improved capital structure provides financial flexibility to support ongoing investment in software development and product innovation.
Leadership and Innovation
Leadership transitioned in late 2025 with Andrew Russell appointed as Group CEO and Managing Director, bringing extensive experience in financial services technology. Under his stewardship, Iress is accelerating its business efficiency program targeting a Cash EBITDA margin exit run-rate above 25% by FY26.
Innovation remains a priority, with significant investments in AI integration across products to enhance client workflows, risk management, and compliance automation. The company also expanded its global connectivity through the Iress Global FIX Hub and launched new partnerships to enrich its Xplan platform.
Commitment to Responsible Business and Sustainability
Iress published its first Sustainability Report aligned with the Australian Sustainability Reporting Standards, reinforcing its commitment to transparency and responsible business practices. The company achieved 100% renewable electricity usage in Australia and implemented initiatives to reduce emissions and waste.
While Iress has retired its previous greenhouse gas emissions targets due to business model changes, it plans to establish new targets in 2026, using 2025 as a baseline. The company continues to embed sustainability considerations into its governance and risk management frameworks.
Outlook and Market Position
Entering FY26, Iress is positioned as a streamlined, client-focused software business with a clear pathway to margin expansion and improved cash generation. The company’s disciplined capital management and strategic investments in AI and platform modernization aim to drive sustainable long-term growth and shareholder value.
Bottom Line?
Iress’ FY25 results mark a turning point with stronger profitability and renewed dividends, but investors will watch closely how the new CEO leverages AI and sustainability to fuel growth.
Questions in the middle?
- How will the transition to Cash EBITDA as the primary performance measure affect investor perception and valuation?
- What specific AI-driven product innovations can materially impact client retention and revenue growth in FY26?
- How will Iress’ revised greenhouse gas targets and sustainability initiatives influence its competitive positioning and regulatory compliance?