Infomedia (IFM) H1 2025 earnings summary

Executive summary

• Total revenue for H1 FY25 increased 2% to $71.2 million, with recurring revenue up 3% and underlying cash EBITDA up 7% to $16.7 million, despite a major customer churn event impacting SimplePart.

• Net Profit After Tax rose 63% year-over-year to $8.3 million, and adjusted NPATA increased 11% to $10.5 million.

• Free cash flow increased 62% to $17.2 million, with a closing cash balance of $78 million and no debt.

• Announced a fully franked interim dividend of 2.2 cents per share and a share buyback of up to 5% of issued capital.

• Acquired 50% of Intellegam, a European generative AI startup, to enhance product suite and accelerate AI integration.

Financial highlights

• Recurring revenue increased 3% year-over-year; total revenue rose 2% to $71.2 million; costs grew only 1% due to disciplined management.

• Underlying cash EBITDA margin held steady at 23%; underlying EBITDA up 5%.

• Reported NPAT grew 63% to $8.3 million; adjusted NPATA up 11% to $10.5 million; basic EPS rose 62% to 2.22 cents per share.

• Free cash flow increased 62% to $17.2 million; cash and cash equivalents at period end were $78 million, with zero debt.

• Capitalisation of development costs at 14% of revenue.

Outlook and guidance

• FY25 revenue guidance confirmed at $142–$149 million with stable margins, subject to macroeconomic conditions.

• Second half expected to match or exceed first half revenue, supported by contract price increases, new APAC and EMEA revenue, and full-period impact of new contracts.

• Focus on strengthening regional sales, integrating Intellegam AI, and expanding Infodrive CX.

• Continued investment in AI and tech stack rebuild to drive future growth.

• Interim dividend of 2.2cps declared; buyback of up to 5% of shares outstanding planned.