Infomedia (IFM) H2 2025 earnings summary

Executive summary

• Achieved 4% total revenue growth year-over-year to $147m, with underlying cash EBITDA up 7% to $35m, despite major customer churn in SimplePart/SP e-commerce segment.

• Free cash flow increased by 34% to $32m, supported by improved working capital management.

• Announced a $0.02 per share fully franked final dividend, totaling $0.042 per share for FY 2025.

• Signed a scheme implementation agreement for a $1.72 per share takeover offer from TPG Capital, representing a 41% premium to the 3-month VWAP, pending shareholder approval.

• Acquired 50% of Intelligem/Intellegam, enhancing AI capabilities and product roadmap.

Financial highlights

• Underlying cash EBITDA margin increased to 24% from 23.4% year-over-year.

• EPS rose 31% to $0.0444 per share; adjusted EPS up 6% to $0.0588 per share.

• Free cash flow increased by 34% after the final SimplePart earnout payment.

• Cash holdings at year end rose to $84.6 million from $70.4 million.

• Recurring revenue increased 4% to $145.4m, now representing 99% of total revenue.

Outlook and guidance

• FY 2026 revenue guidance set at $152 million–$159 million.

• No major churn events expected in FY 2026; improved sales momentum in EMEA and Americas.

• Focus on increasing sales productivity, rebuilding Infodrive CX, and expanding AI solutions with Intelligem/Intellegam.

• Four new AI solutions to be rolled out in Q2 FY26 following Intellegam acquisition.