Integrated Research (IRI) H1 2025 earnings summary

Executive summary

• New business revenue grew 76% year-over-year to $7.6 million, reflecting progress in a strategic shift toward product-led growth and innovation, with a major US bank secured as a foundation client for the new High Value Payments product.

• Statutory revenue declined 29% year-over-year to $28.8 million, impacted by a softer renewals book.

• EBITDA fell 58% year-over-year to $4.6 million, and NPAT decreased 59% to $4.6 million, despite cost containment and non-operating gains.

• Pro forma EBITDA rose 53% to $11.8 million, aided by $3.3 million in non-operating gains from FX and the sale of a non-core business.

• Focus shifted to a product-led growth strategy to reduce reliance on lumpy contract renewals and drive sustainable growth.

Financial highlights

• Total contract value (TCV) for H1 FY25 was $26.5 million, down 36% year-over-year due to soft renewals, with new business TCV up 76% to $7.6 million.

• Pro forma revenue was $36.6 million, down 2% year-over-year, with 89% term-based revenue.

• Net cash at December 31, 2024, was $31.1 million, flat year-over-year and down 3% from June 2024.

• No interim dividend declared for the half; a $3.5 million fully franked final dividend for FY24 was paid.

• Company remains debt free, with NTA per share at 51.8 cents.

Outlook and guidance

• Renewals book for FY25 remains softer than FY24 and is weighted to the second half.

• Targeting a return to sustainable pro forma revenue growth over the medium term, leveraging product-led strategy and innovation.

• Further new product announcements expected in the coming months.

• Go-to-market refresh underway in Europe following global realignment.

• Future dividend decisions will be made after annual results are available.