IODM Ltd. (IOD) AI Stock Analysis

• Market Cap: AU$95.20M
• Dividend Yield: N/A
• Average Volume (3M): 88.13K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.15
• Revenue Growth: 44.80%
• EPS Growth: 7.69%
• Country: AU
• Employees: 15
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 634,659,360
• 10 Day Avg. Volume: 20,036
• 30 Day Avg. Volume: 88,132
• PEG Ratio: 4.28
• Price to Book (P/B): -58.74
• Price to Sales (P/S): 26.52
• P/FCF Ratio: -25.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: AU$0.14 ▲(2.86% Upside)

The score is held back primarily by weak financial performance (persistent losses, cash burn, and negative equity) and limited valuation support (negative P/E and no dividend data). Technicals are comparatively better, with the price above key moving averages and mostly neutral momentum, providing some offset but not enough to overcome the fundamental risks.

Positive Factors

Multi-year revenue growth

Sustained multi-year top-line expansion (noted growth from 2020–2025 and a ~44.8% growth metric) signals persistent customer adoption and market traction. Durable revenue scale provides a foundation for future operating leverage if margins and cash conversion continue to improve.

Improving gross profitability

A clear uptick in gross profitability in 2025 implies improving unit economics and better product margins. If sustained, higher gross margins enable meaningful operating leverage, reducing the cash burn required to support each incremental dollar of revenue over the medium term.

Free cash flow trend improvement

A material improvement in free cash flow year-on-year, even from a negative base, shows the business is moving toward cash efficiency. Continued progress here materially reduces reliance on external funding and supports sustainable investment in product and sales over months to years.

Negative Factors

Deep and persistent losses

Very large negative margins and ongoing net losses indicate the core business is not yet profitable and is unlikely to self-fund growth. Persistent losses erode flexibility, necessitate frequent capital raises, and constrain long-term strategic options absent structural margin improvement.

Negative shareholders' equity and rising leverage

Negative equity and debt exceeding assets signal a weakened balance sheet that heightens refinancing and covenant risk. This structurally limits the company’s ability to borrow, pursue M&A, or withstand shocks, increasing dependence on external financing or dilutive capital raises.

Consistent negative operating cash flow

Recurrent negative operating and free cash flows show the business consumes cash to operate, creating ongoing funding needs. Over the medium term this raises dilution and liquidity risk, restricting the firm's ability to invest in product, sales, and sustainable growth initiatives.

IODM Ltd. Business Overview & Revenue Model

Company Description

IODM Limited provides cloud based software as a service in Australia, New Zealand, and the United Kingdom. It develops an automated debtor management solution that offers accounts receivable monitoring and collection management tool through a central cloud based platform for businesses. The company was incorporated in 2002 and is headquartered in Melbourne, Australia.

How the Company Makes Money

IODM Ltd. makes money primarily through subscription fees charged to businesses that use its software platform. The company offers its accounts receivable management solution on a Software-as-a-Service (SaaS) model, where clients pay regular fees based on their usage, which can vary depending on the number of users or the volume of invoices processed. Additionally, IODM may generate revenue from setup fees, premium features, or customization services. Strategic partnerships with financial institutions or other software providers may also contribute to expanding the company's market reach and customer base, thus influencing its revenue growth.

IODM Ltd. Financial Statement Overview

Summary

Financial profile remains weak: the company is still loss-making with materially negative margins, ongoing negative operating/free cash flow, and a deteriorated balance sheet with negative equity and rising debt. Offsetting positives include longer-term revenue scale-up and improved gross profitability in the latest year, but overall sustainability and funding risk remain key concerns.

Income Statement

IODM remains in a loss-making profile with deeply negative profitability despite some top-line scale-up over the last several years. Revenue increased from 2020 to 2025, but the latest year (2025) shows a decline versus 2024, and margins are still materially negative (net margin around -107% in 2025). A positive development is the sharp improvement in gross profitability in 2025 versus prior years, but operating losses (EBIT/EBITDA) remain large relative to revenue, keeping earnings quality and sustainability weak.

Balance Sheet

The balance sheet shows elevated financial risk: shareholders’ equity is negative in 2024 and 2025, which reduces flexibility and makes leverage harder to interpret. Debt has risen since 2023 and sits above total assets in 2025 (assets are relatively small versus obligations), indicating a constrained capital position. The earlier period (2020–2023) showed positive equity, but the recent deterioration is a key weakness and increases funding/refinancing sensitivity.

Cash Flow

Cash generation is weak, with operating cash flow and free cash flow negative in every year shown, implying the business is still consuming cash to operate. There is a notable improvement in free cash flow in 2025 versus 2024 (a large positive growth rate off a negative base), but absolute free cash flow remains meaningfully negative, suggesting continued reliance on external capital or balance sheet support to fund operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.92M	2.76M	1.91M	1.14M	803.30K	859.49K
Gross Profit	-1.56K	2.76M	-296.42K	-862.27K	-826.22K	-658.65K
EBITDA	-2.91M	-2.75M	-2.95M	-2.24M	-2.24M	-2.11M
Net Income	-3.10M	-2.96M	-3.11M	-2.40M	-2.40M	-2.20M
Balance Sheet
Total Assets	1.35M	826.83K	929.66K	2.52M	2.00M	876.87K
Cash, Cash Equivalents and Short-Term Investments	461.12K	189.88K	282.71K	1.78M	1.19M	651.13K
Total Debt	320.90K	918.97K	709.30K	571.95K	726.47K	9.50K
Total Liabilities	1.30M	2.07M	1.77M	1.17M	1.20M	438.98K
Stockholders Equity	46.98K	-1.25M	-840.61K	1.34M	799.05K	437.89K
Cash Flow
Free Cash Flow	-1.50M	-2.86M	-2.44M	-2.08M	-1.79M	-1.64M
Operating Cash Flow	-3.06M	-2.86M	-2.44M	-2.08M	-1.79M	-1.64M
Investing Cash Flow	0.00	-1.22K	0.00	0.00	43.40K	-111.10K
Financing Cash Flow	2.69M	2.76M	949.34K	2.67M	2.28M	1.66M

IODM Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IOD, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.14, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:IOD.

IODM Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RKN	72 Outperform	AU$64.00M	11.82	21.98%	4.39%	9.30%	11.68%
IRI	66 Neutral	AU$60.50M	4.43	13.76%	5.97%	-18.05%	-51.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IOD	48 Neutral	AU$95.20M	-31.25	―	―	44.80%	7.69%
YOJ	46 Neutral	AU$131.52M	-16.43	-140.76%	―	-41.24%	75.68%
AR9	44 Neutral	AU$47.23M	-6.33	-64.13%	―	-38.03%	-11.27%
UBN	40 Underperform	AU$55.24M	-12.87	-38.41%	―	4.16%	-0.74%

IODM Ltd. Corporate Events

IODM Issues New Shares Under Disclosure Exemption, Confirms Regulatory Compliance

IODM Limited has issued 18,095,193 new ordinary fully paid shares at an issue price of 13 cents per share on 19 December 2025 under Australian Corporations Act provisions allowing issues without a disclosure document. The company has confirmed that it remains compliant with its financial reporting and continuous disclosure obligations and that there is no excluded information requiring disclosure, signalling to investors that the capital raising has been conducted within regulatory requirements and without undisclosed material information.

IODM Plans Capital Raise with Issue of Over 18 Million New Shares

IODM Limited, listed on the ASX under the code IOD, has announced a proposed issue of up to 18,095,193 new fully paid ordinary shares. The securities will be issued via a placement or similar capital-raising mechanism on 19 December 2025, indicating the company is moving to strengthen its capital base, which may provide additional funding capacity for its ongoing operations or future growth initiatives and could dilute existing shareholders depending on the final terms of the issue.

IODM Ltd. Reports Successful AGM Outcomes

IODM Ltd. announced the results of its Annual General Meeting held on November 13, 2025, where all resolutions were passed by poll. The meeting saw the withdrawal of Resolutions 2 and 3 due to the resignations of two directors, and Resolution 7 was also withdrawn as its condition was not met. This outcome reflects a stable governance structure and shareholder support, potentially strengthening IODM’s position in the market.

IODM Ltd. Reports Strong FY25 Growth with Focus on International Education

IODM Ltd. has reported significant growth in its financial performance for FY25, with a notable increase in total revenue to AUD 2.76 million, up 45% from the previous year. The company has seen a substantial shift towards international education, particularly in the UK, with UK education revenue rising by 29% to AUD 2.65 million. This growth is accompanied by increased investment in staff across Australia, the UK, and North America. Additionally, the number of onboarded universities has surged by 180%, indicating a strong expansion in their domestic education sector.

IODM Ltd. Announces New Director Appointment

IODM Ltd. has announced the appointment of Paul Masi as a director of the company, effective November 11, 2025. Paul Masi holds 1,326,584 ordinary shares through Synco 1 Pty Ltd AFT Socius Trust, indicating a significant stake in the company. This appointment may influence IODM Ltd.’s strategic direction and could have implications for stakeholders given Masi’s substantial shareholding.

IODM Limited Announces Director Departure

IODM Limited announced that Diana Heggie has ceased to be a director of the company as of November 11, 2025. The notice indicates that there are no relevant interests in securities or contracts associated with her departure, suggesting a straightforward resignation without financial implications for the company.

IODM Limited Announces Director Departure and Securities Update

IODM Limited announced that Paul Kasian has ceased to be a director of the company as of November 11, 2025. The notice details Kasian’s interests in securities, including unquoted options and ordinary shares held through Yongala Investments Pty Ltd. This change in directorship could impact the company’s strategic direction and stakeholder relations, given Kasian’s significant holdings and potential influence in the company.

IODM Ltd. Withdraws AGM Resolutions Amid Director Resignations

IODM Ltd. announced the withdrawal of two resolutions from their upcoming Annual General Meeting following the resignations of Ms. Diana Heggie and Dr. Paul Kasian. Despite these changes, the company assures stakeholders that the withdrawal will not have any material adverse impact on its operations or the validity of proxy votes for other business items, and it remains well-positioned to continue its strategic initiatives.

IODM Announces Board Changes Amid Global Expansion

IODM Limited has announced significant changes to its Board of Directors, with Dr. Paul Kasian stepping down as Chair and Non-Executive Director, and Karen Penney taking over as Interim Chair. The company is also welcoming Paul Masi as a new Non-Executive Director, bringing extensive experience from his previous roles in finance. These changes come as IODM focuses on international expansion into North America, Europe, and Japan, building on its growth in the UK. The board believes these strategic shifts will support the company’s ongoing global commercialisation efforts and enhance its market position.

IODM Ltd. Achieves Record Growth in Q1 FY26 with Strategic Expansion in Education Sector

IODM Ltd. reported a record increase in cash receipts for Q1 FY26, with a 76% rise compared to the previous year, driven primarily by a 116% increase in the UK education sector. The company has successfully expanded its market penetration in the UK by onboarding additional universities and launching a new student portal product, which has been well-received by educational institutions. In North America, IODM has advanced its engagement with educational institutions, completing the integration of IODM Connect with TransferMate and finalizing its marketing strategy, indicating a strategic push to enhance its presence in these regions.