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IRESS Limited (AU:IRE)
ASX:IRE

IRESS Limited (IRE) AI Stock Analysis

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AU:IRE

IRESS Limited

(Sydney:IRE)

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Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
AU$8.00
▲(9.59% Upside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by improving financial health (profitability recovery and lower leverage), tempered by weakening revenue and cash-flow momentum. Technicals are the main drag given a clear downtrend versus moving averages and a negative MACD, while valuation provides partial support through a reasonable P/E and moderate dividend yield.
Positive Factors
Deleveraging & equity rebuild
Material deleveraging and stronger equity reduce financial risk and increase optionality. Lower leverage improves capacity to fund R&D, M&A or absorb customer churn, reduces refinancing pressure and supports long-term stability of recurring enterprise contracts.
Return to sustained profitability
A rebound to positive net income after a loss demonstrates operating recovery and margin resilience. Sustained profitability provides internal capital for product investment and service delivery, reinforcing competitive position in enterprise software markets.
Recurring SaaS/license-based revenue mix
A multi-year subscription and maintenance model creates predictable, high-quality revenue with cross-sell and retention advantages. Recurring streams and usage fees support long-term cash visibility and client stickiness versus transactional business models.
Negative Factors
Two-year revenue decline
Consecutive annual revenue declines reflect weaker product demand or competitive pressure. Persistent top-line shrinkage reduces operating leverage, limits reinvestment capacity, and risks margin compression if fixed costs or sales investments must be maintained.
Weakened cash-flow momentum
A marked drop in operating and free cash flow cuts internal funding for R&D, integrations and debt service. Reduced cash generation increases reliance on external financing for growth initiatives and heightens sensitivity to working-capital swings over the medium term.
Past elevated leverage & asset shrinkage
Historical high leverage and declining asset base indicate prior reliance on debt and possible downsizing. Even with recent deleveraging, this legacy constrains flexibility, may limit collateral for new financing, and raises caution about capital intensity.

IRESS Limited (IRE) vs. iShares MSCI Australia ETF (EWA)

IRESS Limited Business Overview & Revenue Model

Company DescriptionIress 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 MoneyIRESS 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
Earnings and balance sheet improved meaningfully (return to profitability after 2023 loss; debt reduced and equity rebuilt), but operating momentum is a concern with two straight years of revenue decline and a notable 2025 drop in operating and free cash flow.
Income Statement
63
Positive
Profitability rebounded strongly after a 2023 loss (net income improved from -$137.5M in 2023 to $88.7M in 2024 and $79.3M in 2025), with solid earnings levels in most years shown. However, growth is a clear headwind: revenue has declined in 2024 (-4.0%) and fell further in 2025 (-6.0%). Margins were healthy in 2024 (about 14.8% net margin), but the 2023 drawdown highlights earnings volatility and execution risk.
Balance Sheet
68
Positive
Leverage has improved materially versus the 2022–2023 peak: total debt declined from $423.0M (2023) to $234.0M (2024) and $196.1M (2025), while equity increased from $272.0M (2023) to $378.1M (2024) and $423.1M (2025). This de-risking is a major positive. The main offset is that the business has operated with elevated leverage in the recent past (debt-to-equity was 1.55x in 2023), and total assets have also trended down from 2023 to 2025, suggesting some balance sheet shrinkage alongside the revenue decline.
Cash Flow
54
Neutral
Cash generation remains positive, but momentum weakened in 2025: operating cash flow fell to $62.6M from $104.6M in 2024, and free cash flow dropped to $49.6M from $82.9M (down ~31.9% in 2025). 2024 showed strong improvement (free cash flow growth ~87%), but the step-down in 2025 raises questions about sustainability and working-capital/operating efficiency. Cash flow has generally been supportive of earnings in the years provided, though coverage was not consistently strong across periods.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue556.32M600.83M625.74M615.59M595.95M
Gross Profit148.63M124.22M96.38M167.51M138.59M
EBITDA119.29M154.85M-54.28M119.95M146.39M
Net Income79.26M88.67M-137.48M52.67M73.80M
Balance Sheet
Total Assets670.12M730.22M792.22M1.00B1.03B
Cash, Cash Equivalents and Short-Term Investments55.35M66.19M50.74M63.81M64.87M
Total Debt196.06M234.03M422.96M462.75M389.38M
Total Liabilities247.01M352.12M520.21M566.25M495.71M
Stockholders Equity423.10M378.11M272.01M433.81M536.91M
Cash Flow
Free Cash Flow49.62M82.91M44.24M84.97M77.08M
Operating Cash Flow62.63M104.57M63.66M112.58M101.21M
Investing Cash Flow25.59M129.56M25.79M-31.96M-34.56M
Financing Cash Flow-101.69M-213.43M-108.25M-77.85M-64.39M

IRESS Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.30
Price Trends
50DMA
8.02
Negative
100DMA
8.47
Negative
200DMA
8.43
Negative
Market Momentum
MACD
-0.24
Negative
RSI
43.13
Neutral
STOCH
54.51
Neutral
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 7.3 is below the 20-day moving average (MA) of 7.39, below the 50-day MA of 8.02, and below the 200-day MA of 8.43, indicating a bearish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 54.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IRE.

IRESS Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
AU$914.53M23.8565.33%10.16%25.67%744.90%
69
Neutral
€1.05B16.5211.92%1.85%11.15%105.20%
65
Neutral
AU$1.23B33.3435.71%1.27%5.11%12.91%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
€1.34B17.5026.73%2.47%-4.10%341.80%
55
Neutral
AU$879.32M490.38-1.11%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:IRE
IRESS Limited
7.30
-0.60
-7.63%
AU:HSN
Hansen Technologies Limited
5.17
0.23
4.74%
AU:BVS
Bravura Solutions Limited
2.04
-0.21
-9.21%
AU:OCL
Objective Corporation Limited
12.78
-2.52
-16.47%
AU:FCL
FINEOS Corporation Holdings Plc Shs Chess Depositary Interests Repr 1 Sh
2.55
0.89
53.61%

IRESS Limited Corporate Events

Iress lodges updated ASX corporate governance statement for 2025
Feb 24, 2026

Iress Limited has lodged its latest corporate governance statement with the ASX for the financial year ended 31 December 2025, confirming that the document is available on its website and has been approved by the board as at 25 February 2026. The accompanying Appendix 4G details the extent to which the company follows ASX Corporate Governance Council principles, indicating broad adherence to recommended practices around board roles, director appointments and accountability, which underscores its focus on transparent governance and regulatory compliance.

By formally mapping its governance practices to ASX requirements and publishing key charters and policies online, Iress provides investors with clearer visibility into board oversight, management responsibilities and director appointment processes. This level of disclosure supports market confidence in the company’s governance framework and may help strengthen its standing with regulators, shareholders and other stakeholders who closely scrutinise governance standards in listed technology and financial services providers.

The most recent analyst rating on (AU:IRE) stock is a Buy with a A$9.50 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Sets Interim Dividend of 13 Cents per Share
Feb 24, 2026

IRESS Limited has declared an interim dividend of AUD 0.13 per ordinary fully paid share for the six-month period ended 31 December 2025, with an ex-dividend date of 10 March 2026 and a record date of 11 March 2026. The payment is scheduled for 8 April 2026, underscoring the company’s ongoing capital return to shareholders and offering income-focused investors greater visibility on near-term cash flows.

The dividend timetable signals continued confidence in the firm’s financial position and earnings capacity over the reported half-year period. By maintaining a structured distribution schedule, IRESS reinforces its shareholder-friendly stance, which may support investor sentiment and contribute to the stock’s appeal in a competitive financial technology landscape.

The most recent analyst rating on (AU:IRE) stock is a Buy with a A$9.50 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Iress lifts pre-tax profit despite revenue slide and negative NTA
Feb 24, 2026

Iress Limited reported a 7.4% decline in revenue from ordinary activities to $556.3 million for the year ended 31 December 2025, while profit before income tax rose 21.5% to $109.2 million. Net profit attributable to shareholders fell 10.6% to $79.3 million, indicating margin improvements and cost discipline but softer top-line performance.

The board declared a fully franked final dividend of 13 cents per share for 2025, up from the prior year’s final payout, and confirmed that no dividend reinvestment plan will apply to this distribution. The group’s net tangible assets per share remained negative at 19.96 cents, reflecting its asset base being dominated by intangible technology and human capital, a common profile for software-driven financial technology providers.

The most recent analyst rating on (AU:IRE) stock is a Buy with a A$9.50 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Iress Sets Date for 2025 Full-Year Results and Investor Call
Jan 27, 2026

Iress Limited, the financial technology provider to wealth management, trading, market data and broader financial services sectors, will release its 2025 full-year financial results for the period ending 31 December 2025 on 25 February 2026. The company will host an investor conference call and Q&A session on the same day, led by Group CEO and Managing Director Andrew Russell and Group CFO Cameron Williamson, with live teleconference and audio webcast options and a replay to be made available via its website, underscoring its ongoing efforts to maintain active communication and transparency with investors and other stakeholders around its financial performance.

The most recent analyst rating on (AU:IRE) stock is a Buy with a A$9.50 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Norges Bank Ceases to Be Substantial Shareholder in IRESS
Jan 18, 2026

Norges Bank has notified IRESS Limited that it has ceased to be a substantial shareholder in the company as of 15 January 2026, following the return of collateral shares amounting to 1,356,943 common shares. The change reduces Norges Bank’s voting power in IRESS below the substantial holding threshold, signalling a decrease in its influence over shareholder decisions, though the notice does not indicate any broader strategic or operational implications for IRESS beyond this adjustment in its share register.

The most recent analyst rating on (AU:IRE) stock is a Buy with a A$9.50 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Norges Bank Ceases to Be Substantial Shareholder in IRESS
Jan 8, 2026

Norges Bank has notified IRESS Ltd that it has ceased to be a substantial shareholder in the company as of 7 January 2026, after returning collateral shares and reducing its holding below the substantial holder threshold. The move slightly reshapes IRESS’s register of major investors but does not, on the face of the disclosure, signal any change in control or governance, and appears to be a technical adjustment related to collateral management rather than a strategic stake sale.

The most recent analyst rating on (AU:IRE) stock is a Buy with a A$9.50 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Reports Lapse of Deferred Share Rights After Conditions Not Met
Jan 6, 2026

IRESS Limited has notified the market of the cessation of 5,879 deferred share rights (IREAC) after these conditional rights lapsed on 28 November 2025 because their specified conditions were not, or could no longer be, satisfied. The relatively small lapse in equity-based incentives marginally reduces the company’s potential future share dilution and may reflect performance or service conditions not being met under its remuneration or incentive plans, but does not signal any change to IRESS’s core operations or strategic direction.

The most recent analyst rating on (AU:IRE) stock is a Buy with a A$9.50 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Norges Bank Ceases to Be Substantial Shareholder in IRESS
Dec 23, 2025

Norges Bank has notified IRESS Limited that it has ceased to be a substantial shareholder in the company as of 22 December 2025, following the return of collateral shares amounting to 1,277,787 common shares. The move reduces Norges Bank’s voting power in IRESS below the substantial holding threshold, potentially altering the company’s institutional investor base and slightly changing the balance of influence among remaining major shareholders, though no broader strategic implications were disclosed.

The most recent analyst rating on (AU:IRE) stock is a Buy with a A$9.50 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Limited Announces Change in Substantial Holdings
Dec 17, 2025

IRESS Limited has announced a change in substantial holdings, with DNR Capital Pty Ltd ceasing to be a substantial holder in the company. This change may impact voting securities and influence the company’s governance dynamics, potentially affecting its strategic decisions and stakeholder interests.

The most recent analyst rating on (AU:IRE) stock is a Buy with a A$9.50 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 26, 2026