IRESS Limited (IRE) AI Stock Analysis

• Market Cap: AU$1.56B
• Dividend Yield: 2.47%
• Average Volume (3M): 699.46K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.62
• Revenue Growth: -4.10%
• EPS Growth: 341.80%
• Country: AU
• Employees: 1,635
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 186,789,470
• 10 Day Avg. Volume: 572,677
• 30 Day Avg. Volume: 699,458
• PEG Ratio: -0.12
• Price to Book (P/B): 4.55
• Price to Sales (P/S): 2.86
• P/FCF Ratio: 20.75
• 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$10.50
• Price Target Upside: 24.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: AU$9.50 ▲(12.16% Upside)

IRESS Limited's overall stock score is driven by a moderate financial recovery and fair valuation. The financial performance shows improvement in profitability and cash flow, though revenue growth and operational cash generation remain concerns. Technical indicators suggest a neutral trend with no strong momentum in either direction. The valuation is reasonable, with a fair P/E ratio and a decent dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Profitability Improvement

Improved profitability and margins indicate that IRESS is effectively managing costs and enhancing operational efficiency, which can lead to sustainable financial performance.

Cash Flow Management

Steady growth in free cash flow suggests strong cash management practices, providing IRESS with the flexibility to invest in growth opportunities and manage debt.

Leverage Management

Improved leverage management enhances financial stability, reducing risk and potentially lowering borrowing costs, which is beneficial for long-term growth.

Negative Factors

Revenue Growth Challenges

Declining revenue growth may limit IRESS's ability to expand its market share and invest in new initiatives, posing a risk to future growth prospects.

Operating Cash Flow Concerns

Absence of operating cash flow in 2024 suggests potential issues in cash generation from core operations, which could impact liquidity and operational investments.

EBIT and Profitability

Zero EBIT indicates challenges in achieving operational profitability, which can affect the company's ability to reinvest in business growth and innovation.

IRESS Limited Business Overview & Revenue Model

Company Description

Iress Limited engages in the designing and developing software and services for the financial services industry in Australia, New Zealand, Asia, the United Kingdom, Europe, South Africa, and North America. It offers client management, business automation, portfolio data, research, financial planning tools, scaled advice journeys, digital client solutions, data-driven compliance and analytics, and regulatory obligations management solutions; and market data, trading interfaces, order and execution management, smart order routing, FIX services, portfolio management, securities lending, analytical tools, algorithmic trading, market making, CFD clearing, post trade solutions, and trading and market data APIs. The company also provides connectivity, client relationship management, wealth management, funds registry, digital advice, digital member portal, fund administration services, automated workflow, application processing, connectivity, mortgage comparison and advice, lender connectivity, quoting, comparison, and application processing solutions. It offers its solutions to institutional and independent advisory clients; institutional sell-side, retail, and online brokers; investment, fund, private client, and wealth managers; custodians; retail and investment platforms; superannuation funds; mortgage lenders and intermediaries; and insurance intermediaries. The company was formerly known as IRESS Market Technology Limited and changed its name to IRESS Limited in May 2012. Iress Limited was incorporated in 1993 and is headquartered in Melbourne, Australia.

How the Company Makes Money

IRESS generates revenue primarily through the subscription model for its software products and services. The company charges its clients periodic fees for access to its platforms, which include trading and market data services. Additional revenue streams include transactional fees for certain services, consulting, and implementation services that help firms integrate IRESS solutions into their operations. IRESS also benefits from strategic partnerships with financial institutions and technology providers, which can enhance its service offerings and expand its market reach, contributing positively to its earnings.

IRESS Limited Financial Statement Overview

Summary

IRESS Limited shows signs of recovery from a challenging 2023, with improvements in profitability and cash flow. The income statement reflects recovering margins and profitability, although revenue growth is challenged. The balance sheet indicates better leverage management and a stronger equity position. Cash flow improvements are significant, but the lack of operating cash flow in 2024 is a potential concern. Overall, while improvements are noted, the company should focus on sustaining revenue growth and operational cash generation to ensure long-term financial stability.

Income Statement

IRESS has experienced fluctuating revenue with a slight decline in 2024 compared to 2023. The gross profit margin remains robust, as it equates to the total revenue indicating strong cost management. However, EBIT was zero in 2024, impacting profitability. EBITDA margin improved significantly from negative in 2023 to positive in 2024, indicating a recovery in operational efficiency. The net profit margin improved in 2024, suggesting better net income management after a loss in 2023.

Balance Sheet

The company's debt-to-equity ratio has improved, suggesting better leverage management, although it remains relatively high. The return on equity is positive for 2024, rebounding from a negative ROE in 2023, which indicates improved profitability relative to shareholder equity. While the equity ratio has improved, indicating a better proportion of equity financing, the overall financial stability needs cautious monitoring due to historical fluctuations.

Cash Flow

Free cash flow has shown a steady growth, highlighting effective cash management. Despite the absence of operating cash flow in 2024, free cash flow has increased significantly. However, the lack of operating cash flow in 2024 raises concerns about the cash generation from operations. The free cash flow to net income ratio is strong, suggesting solid cash conversion from net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	591.58M	600.83M	625.74M	615.59M	595.95M	542.63M
Gross Profit	110.69M	124.22M	96.38M	167.51M	138.59M	126.78M
EBITDA	158.15M	154.85M	-54.28M	119.95M	146.39M	123.70M
Net Income	88.66M	88.67M	-137.48M	52.67M	73.80M	59.07M
Balance Sheet
Total Assets	680.90M	730.22M	792.22M	1.00B	1.03B	1.01B
Cash, Cash Equivalents and Short-Term Investments	40.84M	66.19M	50.74M	63.81M	64.87M	63.54M
Total Debt	191.69M	234.03M	422.96M	462.75M	389.38M	272.94M
Total Liabilities	294.06M	352.12M	520.21M	566.25M	495.71M	419.65M
Stockholders Equity	386.83M	378.11M	272.01M	433.81M	536.91M	586.80M
Cash Flow
Free Cash Flow	72.88M	82.91M	44.24M	84.97M	77.08M	101.36M
Operating Cash Flow	91.28M	104.57M	63.66M	112.58M	101.21M	124.87M
Investing Cash Flow	146.76M	129.56M	25.79M	-31.96M	-34.56M	-139.30M
Financing Cash Flow	-233.55M	-213.43M	-108.25M	-77.85M	-64.39M	43.76M

IRESS Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IRE, the sentiment is Negative. The current price of 8.47 is below the 20-day moving average (MA) of 8.81, below the 50-day MA of 8.90, and above the 200-day MA of 8.43, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 36.49 is Neutral, neither overbought nor oversold. The STOCH value of 16.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IRE.

IRESS Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVS	71 Outperform	AU$1.16B	15.58	65.33%	10.16%	25.67%	744.90%
HSN	66 Neutral	AU$1.08B	24.87	11.92%	1.85%	11.15%	105.20%
OCL	65 Neutral	AU$1.64B	46.09	35.71%	1.27%	5.11%	12.91%
IRE	65 Neutral	AU$1.56B	17.65	26.73%	2.47%	-4.10%	341.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RUL	55 Neutral	AU$1.10B	386.72	<0.01%	―	-29.99%	-66.84%

IRESS Limited Corporate Events

Iress Limited Addresses ASX Price Query Amid Acquisition Speculations

Iress Limited has responded to an ASX price query regarding recent fluctuations in its securities’ trading price. The company stated it is unaware of any undisclosed information that could explain the trading activity. However, it acknowledged a media article suggesting potential acquisition interest, though it has no basis to confirm these claims. Iress continues to engage with multiple parties to explore strategic proposals, maintaining compliance with ASX listing rules.

Iress Limited Responds to Acquisition Speculation

Iress Limited has addressed media speculation regarding potential acquisition interest, stating that there is no basis to confirm the reported details about a potential acquirer. The company is actively engaging with multiple parties to explore any proposals that could be recommended by its Board, and it remains committed to keeping the market informed as per its disclosure obligations.

Iress Limited Initiates Trading Halt Ahead of Key Announcement

Iress Limited has requested a trading halt on its securities pending an upcoming announcement. This move is aimed at managing its continuous disclosure obligations, with the halt expected to last until the announcement is made or normal trading resumes on 26 November 2025. The trading halt indicates a significant development that could impact Iress’s operations or market positioning, and stakeholders are advised to stay informed for further updates.

Iress Limited Appoints New Director with No Initial Securities Interests

Iress Limited has announced the appointment of Andrew John Russell as a director, effective from November 17, 2025. The initial director’s interest notice indicates that Russell currently holds no relevant interests in securities or contracts associated with the company, suggesting a neutral impact on the company’s operations and stakeholder interests.

Iress Launches Efficiency Program and Confirms FY25 Guidance

Iress Limited has announced a business efficiency program aimed at increasing margins and confirmed its FY25 guidance. After divesting six non-core businesses, Iress is now focused on its core software units, Wealth and Trading & Market Data, and plans to enhance profitability and growth through improved product, technology, and client engagement. The company targets a sustainable Cash EBITDA margin of approximately 25% by the end of FY26, reflecting a more efficient operating model. Iress also confirmed its FY25 Adjusted EBITDA guidance and is exploring strategic proposals, with a new CEO set to commence shortly.

Norges Bank Reduces Stake in IRESS Limited

Norges Bank has ceased to be a substantial holder in IRESS Limited as of November 5, 2025. This change in holding is part of a series of transactions involving the return and sale of common stock, impacting the voting securities of IRESS. The adjustment in Norges Bank’s stake could influence IRESS’s market dynamics and shareholder composition, potentially affecting its strategic decisions and investor relations.

Iress Engages New Parties for Potential Acquisition

Iress Limited has opened a virtual data room to engage with new third parties interested in acquiring the company, in addition to those previously expressing interest. While there is no certainty of a proposal or offer, the Iress Board remains committed to maximizing shareholder value and acting in their best interests.

IRESS Limited Issues and Converts Unquoted Equity Securities

IRESS Limited announced the issuance and conversion of unquoted equity securities, with a total of 241 ordinary fully paid securities issued on August 31, 2025. This move may impact the company’s capital structure and provide additional resources for its operations, potentially influencing its market positioning and stakeholder interests.

IRESS Limited Announces Cessation of Certain Securities

IRESS Limited announced the cessation of certain securities due to the lapse of conditional rights, as the conditions for these rights were not met by the end of September 2025. This cessation affects the company’s issued capital but does not indicate any immediate operational or strategic shifts. The announcement reflects routine adjustments in the company’s securities management, with no direct implications for stakeholders mentioned.

Norges Bank Ceases to be Substantial Holder in IRESS Limited

IRESS Limited, a company in the financial services industry, focuses on providing software solutions for financial markets, wealth management, and mortgage sectors. Norges Bank has ceased to be a substantial holder in IRESS Limited as of October 1, 2025, following a series of transactions involving buying and returning collateral shares. This change in substantial holding may impact the company’s shareholder structure and influence its market perception.

Iress Limited Announces Director Departure and Securities Interests

Iress Limited announced the cessation of Marcus Colin Price as a director effective September 4, 2025. This notice details Price’s interests in various securities, including ordinary shares and CEO options, reflecting his involvement in the company’s equity plans. The announcement marks a significant change in the company’s leadership structure, potentially impacting its strategic direction and stakeholder relations.

IRESS Limited Announces Cessation of Securities

IRESS Limited announced the cessation of certain securities, including share appreciation rights, performance rights, and options, due to unmet conditions. This lapse reflects adjustments in the company’s securities management, potentially impacting stakeholders’ interests and the company’s financial strategy.