I Synergy Group Limited reported a 15.63% drop in revenue to AUD 0.81 million for FY2025, alongside a 21.5% increase in net loss to AUD 0.34 million, with auditors flagging going concern uncertainties.
- Revenue declined 15.63% to AUD 0.81 million in 2025
- Net loss after tax increased 21.51% to AUD 0.34 million
- No dividend recommended for the year
- Audit underway with emphasis on going concern uncertainty
- Equity remains negative at AUD (1.001) million despite capital raises
Financial Performance Overview
I Synergy Group Limited has released its preliminary final report for the year ended 31 December 2025, revealing a challenging financial year marked by declining revenue and widening losses. The company’s revenue fell by 15.63% to AUD 0.81 million, down from AUD 0.96 million in 2024. This contraction in top-line sales was accompanied by a net loss after tax of AUD 0.34 million, a 21.5% increase compared to the previous year’s loss of AUD 0.28 million.
The loss per share narrowed to 0.03 cents from 0.08 cents, reflecting a significant increase in the weighted average number of shares outstanding, which rose substantially due to capital raising activities.
Capital Structure and Liquidity
Despite the losses, I Synergy Group undertook several capital initiatives during the year. The company issued new shares, increasing its issued capital from AUD 8.7 million to AUD 10.8 million, and converted AUD 600,000 of convertible notes into equity. These moves helped bolster cash reserves, with cash and cash equivalents rising to AUD 546,000 from AUD 40,000 at the end of 2024.
However, the company’s balance sheet remains under pressure, with net liabilities of AUD (1.001) million, an improvement from the previous year’s AUD (2.48) million but still reflecting a negative equity position. Deferred revenue, primarily from software platform license fees, declined sharply to AUD 520,000 from AUD 1.15 million, indicating recognition of revenue over the licensed periods but also highlighting a slowdown in new license sales or renewals.
Audit and Going Concern Uncertainty
The financial statements are currently under audit, with the company flagging that the auditor’s report is expected to include an Emphasis of Matter paragraph regarding material uncertainty related to the company’s ability to continue as a going concern. This cautionary note reflects ongoing concerns about the company’s financial sustainability given its losses and negative net equity.
Management has not recommended any dividend for the year, signalling a focus on preserving cash and stabilising the business. The company’s directors have also disclosed related party loans amounting to over AUD 630,000, which bear interest and have no fixed repayment terms, underscoring the reliance on internal funding sources.
Operational and Market Context
I Synergy Group operates in the technology sector, specifically providing affiliate marketing software solutions. The decline in revenue could be symptomatic of competitive pressures or slower adoption in its target markets. The company’s development costs remain capitalised but fully amortised, indicating limited new capitalised software development during the year.
Shareholders approved a placement and director fee share issuance shortly after year-end, suggesting ongoing efforts to strengthen the capital base and incentivise management. The shareholder register remains concentrated, with the top four shareholders each holding around 8-11% of issued capital.
Looking Ahead
While the company has taken steps to shore up liquidity, the combination of declining revenues, sustained losses, and going concern warnings means I Synergy Group faces a critical period ahead. Investors will be watching closely for operational improvements, new revenue streams, and the final audit outcome to gauge the company’s prospects for recovery and growth.
Bottom Line?
I Synergy Group’s financial strain and audit caution set the stage for a pivotal year ahead as it seeks to reverse losses and restore investor confidence.
Questions in the middle?
- What specific operational challenges contributed to the revenue decline in 2025?
- How will the company address the going concern uncertainty flagged by auditors?
- What are the plans for future capital raising or cost management to return to profitability?