IODM Ltd. (IOD) AI Stock Analysis

• Market Cap: AU$114.24M
• Dividend Yield: N/A
• Average Volume (3M): 88.13K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.13
• 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: AU$0.23
• Price Target Upside: 64.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): >-0.01
• Revenue Forecast (FY): AU$4.20M

• Rating: 47 Neutral
• Price Target: AU$0.18 ▲(26.43% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is weighed down primarily by weak financial performance (ongoing losses, negative free cash flow, and negative equity), with valuation also constrained by unprofitability (negative P/E and no dividend). Technicals are comparatively stronger, with the price trading above key moving averages and positive momentum, but they do not offset the fundamental balance-sheet and cash-flow risk.

Positive Factors

Multi-year revenue scale-up

Sustained multi-year revenue growth shows the company has been able to expand sales and gain traction in its market. Over 2–6 months this implies a larger revenue base to absorb fixed costs, improve operating leverage potential, and provide a foundation for margin recovery if cost discipline continues.

Improved gross profitability (2025)

A material improvement in gross profitability indicates better unit economics or pricing mix; if sustained, this directly supports a path to profitability by reducing cash burn per dollar of revenue. Structural improvement at gross margin level is durable and helps fund SG&A and R&D from operating cash flow over time.

Software application industry exposure

Operating in the Software - Application sector gives structural advantages: scalable, higher-margin business models and recurring revenue potential. Over a multi-month horizon, industry tailwinds and product scalability can enable faster revenue growth and leverage of fixed costs versus more cyclical industries.

Negative Factors

Negative shareholders' equity

Negative equity and debt exceeding assets materially constrain financial flexibility and increase refinancing risk. This structural weakness limits the company's ability to invest, raises cost of capital, and can force dilutive or onerous financing choices that impair long-term strategic options and growth execution.

Persistent negative operating and free cash flow

Consistent cash burn means the business relies on external funding to sustain operations. Even with recent improvement, negative cash flow is a durable risk that can lead to repeated capital raises, debt service pressure, or cutbacks in product investment, any of which can slow sustainable margin expansion or market share gains.

Deep net losses and 2025 revenue decline

A sharp negative net margin and a year-over-year revenue decline undermine durability of the business model. Large, persistent losses signal that scale has not yet produced profitable operations; absent sustained revenue recovery or significant cost restructuring, the company faces long-term viability and profitability challenges.

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

Financials remain weak: persistent operating losses and cash burn, plus a deteriorated balance sheet with negative equity and rising debt. Offsetting positives include multi-year revenue scale-up and improved gross profitability in the latest year, but profitability and funding risk dominate.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	2.76M	1.91M	1.14M	803.30K	859.49K
Gross Profit	2.76M	-296.42K	-862.27K	-826.22K	-658.65K
EBITDA	-2.75M	-2.95M	-2.24M	-2.24M	-2.11M
Net Income	-2.96M	-3.11M	-2.40M	-2.40M	-2.20M
Balance Sheet
Total Assets	826.83K	929.66K	2.52M	2.00M	876.87K
Cash, Cash Equivalents and Short-Term Investments	189.88K	282.71K	1.78M	1.19M	651.13K
Total Debt	918.97K	709.30K	571.95K	726.47K	9.50K
Total Liabilities	2.07M	1.77M	1.17M	1.20M	438.98K
Stockholders Equity	-1.25M	-840.61K	1.34M	799.05K	437.89K
Cash Flow
Free Cash Flow	-2.86M	-2.44M	-2.08M	-1.79M	-1.64M
Operating Cash Flow	-2.86M	-2.44M	-2.08M	-1.79M	-1.64M
Investing Cash Flow	-1.22K	0.00	0.00	43.40K	-111.10K
Financing Cash Flow	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: Neutral

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 below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.15, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.64 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, 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$59.47M	8.08	21.98%	4.39%	9.30%	11.68%
IRI	64 Neutral	AU$53.27M	7.18	13.76%	5.97%	-18.05%	-51.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IOD	47 Neutral	AU$114.24M	-43.90	―	―	44.80%	7.69%
YOJ	43 Neutral	AU$110.19M	-14.98	-140.76%	―	-41.24%	75.68%
AR9	42 Neutral	AU$42.50M	-5.57	-64.13%	―	-38.03%	-11.27%
UBN	40 Underperform	AU$52.87M	-20.43	-38.41%	―	4.16%	-0.74%

IODM Ltd. Corporate Events

IODM Issues 15 Million Unquoted Options Under Employee Incentive Scheme

IODM Ltd. has notified the market of the issue of 15 million unquoted options under its employee incentive scheme, with various expiry dates and exercise prices. The new options, which are subject to transfer restrictions and will not be quoted on the ASX until those restrictions end, highlight the company’s ongoing use of equity incentives to align employees’ interests with shareholders and support workforce retention.

The issuance of these unquoted options may modestly dilute existing shareholders over time once exercised, but it also strengthens IODM’s ability to attract and retain talent in a competitive technology labour market. By expanding its pool of incentive securities, the company signals a continued focus on human capital as a driver of future growth and operational performance.

The most recent analyst rating on (AU:IOD) stock is a Hold with a A$0.16 price target. To see the full list of analyst forecasts on IODM Ltd. stock, see the AU:IOD Stock Forecast page.

IODM Issues 3 Million Unquoted Options Under Employee Incentive Scheme

IODM Ltd has issued 3 million unquoted options under its employee incentive scheme, with various expiry dates and exercise prices, as disclosed in its latest Appendix 3G filing to the ASX. The move expands the company’s pool of employee incentives, potentially aligning staff rewards more closely with shareholder value and signalling continued use of equity-based compensation to support retention and performance objectives.

The most recent analyst rating on (AU:IOD) stock is a Buy with a A$0.23 price target. To see the full list of analyst forecasts on IODM Ltd. stock, see the AU:IOD Stock Forecast page.

IODM Delivers Record Cash Receipts as UK Education and North American Push Drive Growth

IODM reported record quarterly cash receipts of A$991,000 for Q2 FY26, up 38% year-on-year, driven primarily by a 43% surge in UK education revenue to A$732,000, while net operating cash outflow fell 23% to A$735,000 despite higher operating costs and intensified sales and marketing activity. The company is deepening its foothold in the UK through a successful large-scale tender with a major education institution, continued rollout of its new student portal and onboarding of more universities, while in the US and Canada it is progressing advanced discussions with universities and partners on a “one-to-many” go-to-market strategy that could accelerate adoption of its Connect platform and support its Northern Hemisphere growth ambitions.

The most recent analyst rating on (AU:IOD) stock is a Hold with a A$0.14 price target. To see the full list of analyst forecasts on IODM Ltd. stock, see the AU:IOD Stock Forecast page.

IODM Wins Major UK University Deal in Convera Tie-Up, Lifting Revenue Outlook

IODM Limited has secured a material new revenue stream through its commercial revenue share agreement with Convera, under which it will deploy its IODM Connect platform for one of the largest international student universities in the UK. The implementation, now in onboarding and involving substantial platform development, is expected to generate about $600,000 in annual revenue at full run rate from around April 2026, representing a 23% uplift on IODM’s FY25 audited revenue and a 55% increase on its UK revenues, and expands its education-sector footprint to 16 onboarded universities and four more in progress, reinforcing the company’s positioning in the UK higher education market and underpinning its growth trajectory with payments partners in the UK and North America.

The most recent analyst rating on (AU:IOD) stock is a Hold with a A$0.14 price target. To see the full list of analyst forecasts on IODM Ltd. stock, see the AU:IOD Stock Forecast page.

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.