IRESS Limited (IRE) AI Stock Analysis

• Market Cap: €1.66B
• Dividend Yield: 1.11%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.95
• Revenue Growth: -4.10%
• EPS Growth: 341.80%
• Country: AU
• Employees: 1,635
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 186,789,470
• 10 Day Avg. Volume: 1,913,348
• 30 Day Avg. Volume: 1,108,977
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €9.52
• Price Target Upside: 4.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: AU$9.50 ▲(3.94% Upside)

IRESS Limited's overall stock score is driven by a solid technical analysis indicating positive momentum and a fair valuation. Financial performance shows recovery from past challenges, but concerns remain about revenue growth and operational cash flow. The absence of earnings call and corporate events data did not impact the score.

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 Limited generates revenue through a subscription-based model, licensing its software solutions to financial services firms worldwide. The company charges fees for access to its platforms, which are tailored to meet the needs of different segments within the financial industry, such as trading, investment management, and financial advice. Additionally, IRESS earns income from professional services, including implementation, consulting, and support services, which help clients integrate and optimize the use of its software. Strategic partnerships with financial institutions and technology providers further enhance IRESS's market presence and contribute to its revenue streams by expanding its reach and offering complementary solutions.

IRESS Limited Financial Statement Overview

Summary

IRESS Limited shows signs of recovery from a challenging 2023, with improvements in profitability and cash flow. Despite a slight decline in revenue, the company has improved its margins and cash flow, indicating better management. However, the absence of operating cash flow and fluctuating financial stability are concerns.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	600.83M	625.74M	615.59M	595.95M	542.63M
Gross Profit	124.22M	96.38M	167.51M	138.59M	126.78M
EBITDA	153.07M	-54.28M	119.95M	146.39M	123.70M
Net Income	88.67M	-137.48M	52.67M	73.80M	59.07M
Balance Sheet
Total Assets	730.22M	792.22M	1.00B	1.03B	1.01B
Cash, Cash Equivalents and Short-Term Investments	66.19M	50.74M	63.81M	64.87M	63.54M
Total Debt	234.03M	422.96M	462.75M	389.38M	272.94M
Total Liabilities	352.12M	520.21M	566.25M	495.71M	419.65M
Stockholders Equity	378.11M	272.01M	433.81M	536.91M	586.80M
Cash Flow
Free Cash Flow	82.91M	44.24M	84.97M	77.08M	101.36M
Operating Cash Flow	104.57M	63.66M	112.58M	101.21M	124.87M
Investing Cash Flow	129.56M	25.79M	-31.96M	-34.56M	-139.30M
Financing Cash Flow	-213.43M	-108.25M	-77.85M	-64.39M	43.76M

IRESS Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.14
• 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:IRE, the sentiment is Positive. The current price of 9.14 is above the 20-day moving average (MA) of 8.25, above the 50-day MA of 8.07, and above the 200-day MA of 8.55, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 66.33 is Neutral, neither overbought nor oversold. The STOCH value of 66.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:IRE.

IRESS Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRE	66 Neutral	€1.66B	18.82	26.73%	1.11%	-4.10%	341.80%
Sector *	61 Neutral	$36.02B	6.70	-7.25%	1.99%	8.63%	-7.76%
H2T	―	€686.35M	312.38	1.03%	―	―	―
OCL	74 Outperform	AU$1.86B	57.79	36.92%	0.93%	7.00%	19.41%
BVS	68 Neutral	AU$862.98M	11.62	65.33%	12.96%	25.67%	744.90%
RUL	68 Neutral	AU$701.92M	107.80	11.59%	―	9.76%	-28.92%
FCL	―	AU$1.03B	―	-3.69%	―	―	―

IRESS Limited Corporate Events

Iress Limited Reports Strong 1H25 Results Amid Strategic Transformation

Iress Limited reported its financial results for the first half of 2025, highlighting a 19% increase in underlying EPS and a completed transformation program that has streamlined operations and strengthened the balance sheet. Despite a 3.1% decline in total revenue due to divestments, the continuing business saw a 6.8% revenue increase, driven by strong performance in the UK and global trading sectors. The company is poised for future growth, with strategic investments in new technologies and a focus on enhancing customer experience. The divestment of the Superannuation business has reduced debt, and the upcoming sale of QuantHouse is expected to further improve financial stability. Iress reaffirmed its FY25 guidance, indicating confidence in its growth strategy.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Limited Declares Dividend for H1 2025

IRESS Limited has announced a dividend distribution of AUD 0.11 per share for its ordinary fully paid securities, covering the six-month period ending on June 30, 2025. The ex-dividend date is set for August 22, 2025, with the record date on August 25, 2025, and the payment scheduled for September 22, 2025. This announcement reflects the company’s continued commitment to returning value to its shareholders.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Iress Limited Engages in Acquisition Talks Amid Media Speculation

Iress Limited has acknowledged media speculation regarding potential acquisition interest from Blackstone and Thoma Bravo. The company’s board had previously considered an offer from Blackstone, which was later withdrawn, and is now in early discussions with both parties to determine if a recommendable offer can be made. There is no certainty of a proposal or binding transaction, and shareholders are advised that no action is required at this time. Iress is committed to maximizing shareholder value and will provide updates as necessary. The company is also set to release its 2025 Half Year Financial Results on August 11, 2025.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

DNR Capital Ceases Substantial Holding in IRESS Limited

IRESS Limited has announced that DNR Capital Pty Ltd and its controlled entity have ceased to be substantial holders in the company. This change in substantial holding, effective from July 23, 2025, reflects a sell-off of voting securities, impacting the company’s shareholder structure and potentially its market dynamics.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Spheria Asset Management Acquires Substantial Stake in IRESS Limited

Spheria Asset Management Pty Ltd has become a substantial holder in IRESS Limited, acquiring a 5% voting power in the company as of July 21, 2025. This development signifies a notable shift in IRESS’s shareholder structure, potentially impacting the company’s strategic decisions and stakeholder interests.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Iress to Announce 2025 Half Year Financial Results

Iress Limited announced it will release its 2025 Half Year Financial Results on August 11, 2025, followed by a conference call hosted by the CEO and CFO for investors. This event will offer insights into the company’s performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Limited Issues Deferred Share Rights to Employees

IRESS Limited has announced the issuance of 368,854 deferred share rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of IRESS’s strategy to incentivize and retain talent, potentially impacting its operational dynamics by aligning employee interests with company performance.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Limited Announces Cessation of Securities Due to Unmet Conditions

IRESS Limited announced the cessation of certain securities due to unmet conditions, affecting a total of 321,449 rights, including share appreciation, performance, and deferred share rights. This cessation may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s performance and strategic direction.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 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 Holding

IRESS Limited has announced a change in the substantial holding of its voting shares. DNR Capital Pty Ltd, a substantial holder, has reduced its voting power from 7.297% to 6.279%, affecting 1,901,937 shares. This change in interest may impact the company’s shareholder structure and influence future voting outcomes.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Limited Introduces New Share Trading Policy

IRESS Limited has announced a new share trading policy effective from June 3, 2025, aimed at enhancing transparency and compliance within the company. This policy is expected to impact the company’s operations by providing clearer guidelines for share trading, which could improve investor confidence and align with industry best practices.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Spheria Asset Management Ceases Substantial Holding in IRESS Limited

IRESS Limited has announced that Spheria Asset Management Pty Ltd has ceased to be a substantial holder in the company as of May 21, 2025. This change in substantial holding could impact IRESS’s shareholder composition and influence its market dynamics, potentially affecting investor confidence and market perception.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

IRESS Director Increases Stake, Signaling Confidence in Future Growth

IRESS Limited announced a change in the director’s interest, with Susan Margaret Forrester acquiring an additional 2,944 ordinary shares through an on-market trade, bringing her total to 11,540 shares. This transaction reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which could positively influence stakeholder perceptions.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.

Challenger Limited Alters Stake in IRESS Limited

IRESS Limited, a company in the financial technology sector, has announced a change in the interests of a substantial holder, Challenger Limited, and its associated entities. This change involves various nominees such as J.P. Morgan, BNP Paribas, HSBC, and Citicorp, affecting the voting power and number of shares held. The notice indicates a decrease in the voting power of Challenger Limited, which may impact its influence within IRESS Limited.

The most recent analyst rating on (AU:IRE) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on IRESS Limited stock, see the AU:IRE Stock Forecast page.