Integrated Research Limited (IRI) AI Stock Analysis

• Market Cap: AU$54.18M
• Dividend Yield: 5.97%
• Average Volume (3M): 387.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -18.05%
• EPS Growth: -51.45%
• Country: AU
• Employees: 142
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.85
• Shares Outstanding: 180,591,800
• 10 Day Avg. Volume: 138,367
• 30 Day Avg. Volume: 387,860
• PEG Ratio: -0.11
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 9.12
• 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$0.36
• Price Target Upside: 5.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): >-0.01
• Revenue Forecast (FY): AU$65.00M

• Rating: 64 Neutral
• Price Target: AU$0.34 ▲(0.59% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

Overall score reflects solid financial stability but weakening operating performance (declining revenue, margin pressure, lower free cash flow) as the primary drag. Technicals add additional caution with the stock below major moving averages and negative MACD. Valuation is a key offset with a very low P/E and high dividend yield, while the latest earnings call indicates near-term earnings risk from churn, one-offs and higher investment, balanced by strong liquidity and a credible product-led growth roadmap.

Positive Factors

Low leverage / strong capital structure

Minimal financial leverage (debt/equity ~0.018) provides durable financial flexibility. With low interest obligations the company can fund R&D, support product development, or pursue selective M&A without stressing cash flow, improving resilience through cycles.

Recurring subscription revenue model

A subscription and maintenance-focused business creates predictable, recurring revenue and higher customer lifetime value. This structural model supports steady cash inflows, facilitates upsells and renewals, and increases visibility for medium-term planning and margin leverage.

Very high gross profit margins

Extremely high gross margins are typical of software licensing and indicate scalable economics. With low incremental cost of software distribution, the company can invest more in sales and R&D while preserving operating leverage, supporting sustainable operating profitability over time.

Negative Factors

Declining revenue growth

Negative top-line growth reduces the firm’s ability to absorb fixed costs and limits operating leverage benefits. Sustained revenue contraction can reflect competitive pressures, product-market fit issues, or customer churn, constraining long-term reinvestment capacity and strategic options.

Eroding profitability and returns

Sharp declines in ROE and net margins indicate weakening ability to convert revenue into shareholder value. This reduces internal capital generation, makes funding growth more costly, and signals rising competitive or cost pressures that could persist absent structural change.

Weakened free cash flow generation

A notable drop in free cash flow and low operating cash-to-net-income ratio signal weaker cash conversion. Reduced FCF limits capacity to fund dividends, R&D, or acquisitions internally, increasing vulnerability to funding shocks and reducing margin for strategic investments.

Integrated Research Limited Business Overview & Revenue Model

Company Description

Integrated Research Limited (IRI) is a global technology company specializing in performance management and monitoring solutions for complex IT environments. The company operates primarily in the sectors of telecommunications, finance, and IT infrastructure, offering core products that include software solutions for analyzing and optimizing application performance, network performance, and service delivery. IRI's innovative technology helps organizations ensure high availability and reliability of their critical systems, enabling businesses to enhance customer experience and operational efficiency.

How the Company Makes Money

IRI generates revenue through a combination of software licensing, subscription services, and professional services. The company's key revenue streams include sales of its performance management software, which is offered both as perpetual licenses and as software-as-a-service (SaaS) subscriptions. Additionally, IRI earns income from consulting and support services, which help clients implement and optimize their solutions. Significant partnerships with major technology providers and telecommunications companies also contribute to its earnings, as these collaborations facilitate broader distribution and integration of IRI's products into clients' existing systems.

Integrated Research Limited Financial Statement Overview

Summary

Mixed fundamentals: strong gross margin (100%) and very low leverage (debt-to-equity 0.018) support stability, but revenue declined (-4.25%), profitability compressed (net margin down to 19.57% from 32.57%), and free cash flow fell (-17.07%).

Income Statement

Integrated Research Limited has shown a decline in revenue growth with a negative rate of -4.25% in the latest year. Despite this, the company maintains strong gross profit margins at 100%, indicating efficient cost management. However, net profit margins have decreased from 32.57% to 19.57%, reflecting reduced profitability. The EBIT and EBITDA margins have also declined, suggesting operational challenges.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.018, indicating minimal leverage and financial stability. Return on equity has decreased from 30.70% to 13.28%, showing reduced efficiency in generating profits from shareholders' equity. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Free cash flow has decreased by 17.07%, indicating potential challenges in generating cash. The operating cash flow to net income ratio is 0.42, suggesting moderate cash generation from operations. The free cash flow to net income ratio is high at 0.94, indicating efficient conversion of net income to cash.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	67.76M	68.26M	83.29M	69.83M	62.87M	78.49M
Gross Profit	51.80M	68.26M	83.29M	28.94M	62.87M	78.49M
EBITDA	8.82M	13.45M	25.34M	-1.07M	10.40M	23.34M
Net Income	7.26M	13.36M	27.13M	-29.23M	1.54M	7.93M
Balance Sheet
Total Assets	115.34M	122.97M	114.19M	90.84M	132.20M	136.63M
Cash, Cash Equivalents and Short-Term Investments	43.64M	40.59M	31.89M	18.55M	12.33M	12.15M
Total Debt	2.36M	1.85M	1.72M	3.05M	4.87M	13.08M
Total Liabilities	19.67M	22.36M	25.82M	30.97M	45.08M	53.29M
Stockholders Equity	95.67M	100.62M	88.36M	59.87M	87.11M	83.34M
Cash Flow
Free Cash Flow	15.13M	8.18M	15.22M	8.20M	6.97M	9.67M
Operating Cash Flow	15.58M	8.68M	13.04M	15.99M	18.76M	21.91M
Investing Cash Flow	744.00K	4.12M	2.27M	-8.90M	-11.80M	-12.24M
Financing Cash Flow	-4.32M	-5.00M	-1.69M	-1.63M	-6.96M	-6.44M

Integrated Research Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IRI, the sentiment is Negative. The current price of 0.34 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.33, and below the 200-day MA of 0.37, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.49 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IRI.

Integrated Research Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRI	64 Neutral	AU$54.18M	-10.26	13.76%	5.97%	-18.05%	-51.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AMX	48 Neutral	AU$28.50M	-3.90	-31.01%	―	-3.43%	-40.65%
PRO	43 Neutral	AU$7.38M	-0.46	-133.07%	―	-4.90%	-52.78%
NVU	43 Neutral	AU$68.07M	-9.35	―	―	―	―
FLX	41 Neutral	AU$38.81M	-3.17	―	―	21.82%	6.83%

Integrated Research Limited Corporate Events

Integrated Research Swings to EBITDA Loss as Product-Led Growth Drive Accelerates

Integrated Research reported a 2% decline in first-half FY26 revenue to $28.3m and an EBITDA loss of $3.1m, largely due to higher expected credit losses and a softer renewals book, despite a solid 8% increase in cash to $43.6m. Management highlighted that profit will remain pressured in the short to medium term as the company continues substantial investment in new products under its product-led growth strategy.

The group accelerated new product delivery, launching Iris, a natural-language AI observability interface, Elevate, a cloud-based Prognosis-as-a-service offering, and completing the first implementation of its High Value Payments solution with a top-10 U.S. bank. New business indicators showed early traction, with new client licence revenue up 12% and expansion licence revenue up 110%, positioning IR for a gradual shift toward sustainable, consumption-based growth despite near-term earnings headwinds.

The most recent analyst rating on (AU:IRI) stock is a Hold with a A$0.34 price target. To see the full list of analyst forecasts on Integrated Research Limited stock, see the AU:IRI Stock Forecast page.

Integrated Research swings to interim loss as revenue dips and dividend withheld

Integrated Research Limited reported a 2% decline in revenue to A$28.3 million for the half-year to 31 December 2025, alongside a net loss attributable to members of A$1.5 million, reversing prior profitability. The board again withheld an interim dividend, though net tangible asset backing per share rose slightly year-on-year, indicating some balance sheet resilience despite weaker earnings.

The absence of a dividend underlines the company’s focus on conserving capital as it navigates softer trading conditions in its observability and real-time intelligence markets. The modest improvement in net tangible assets per share may reassure shareholders about underlying asset strength, even as the interim loss highlights ongoing challenges in restoring sustainable profit growth.

The most recent analyst rating on (AU:IRI) stock is a Hold with a A$0.34 price target. To see the full list of analyst forecasts on Integrated Research Limited stock, see the AU:IRI Stock Forecast page.

Integrated Research Issues Over 2.2 Million Unquoted Performance Rights Under Incentive Scheme

Integrated Research Limited has issued 2,297,321 unquoted performance rights under its employee incentive scheme, effective 14 January 2026. The issuance, which is subject to transfer restrictions and will not be quoted on the ASX until those restrictions lapse, forms part of the company’s ongoing approach to staff remuneration and alignment of employee interests with long-term shareholder value.

The most recent analyst rating on (AU:IRI) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Integrated Research Limited stock, see the AU:IRI Stock Forecast page.

Integrated Research Director Ian Lowe Receives Additional Performance Rights Grant

Integrated Research Limited has disclosed a change in director Ian Lowe’s holdings, with the managing executive receiving an additional allocation of performance rights in the company. The grant of 581,395 new performance rights, approved by shareholders at the 24 November 2025 annual general meeting, increases Lowe’s total performance rights to 984,621 and reflects a continued emphasis on equity-based executive incentives without any cash consideration involved.

The most recent analyst rating on (AU:IRI) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Integrated Research Limited stock, see the AU:IRI Stock Forecast page.

Integrated Research Issues 581,395 Unquoted Performance Rights Under Staff Incentive Plan

Integrated Research Limited has issued 581,395 unquoted performance rights under its employee incentive scheme, with the securities coded IRIAAA and subject to transfer restrictions until those conditions are lifted. The move increases the company’s pool of equity-based remuneration, indicating a continued focus on aligning staff incentives with shareholder interests, though the rights will not be quoted on the ASX until the restriction period ends.

The most recent analyst rating on (AU:IRI) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Integrated Research Limited stock, see the AU:IRI Stock Forecast page.

Integrated Research Performance Rights Lapse After Vesting Conditions Not Met

Integrated Research Limited has notified the ASX that 188,247 performance rights (security code IRIAAA) lapsed on 31 December 2025 after the conditions attached to those rights were not satisfied or became incapable of being satisfied. The cessation of these securities, disclosed via an Appendix 3H filing, results in a reduction of potential equity issuance under this incentive arrangement and may slightly lessen future share dilution for existing shareholders, while signalling that relevant performance or vesting hurdles were not met over the applicable period.

The most recent analyst rating on (AU:IRI) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Integrated Research Limited stock, see the AU:IRI Stock Forecast page.

Director Increases Stake in Integrated Research Limited

Integrated Research Limited announced a change in the director’s interest notice, revealing that Mr. Michael Hitz, a director of the company, has increased his indirect interest in the company by acquiring 149,500 ordinary shares through an on-market trade, bringing his total holdings to 300,000 shares. This acquisition could indicate confidence in the company’s future prospects and may impact stakeholder perceptions positively, reinforcing the company’s market position.

The most recent analyst rating on (AU:IRI) stock is a Hold with a A$0.35 price target. To see the full list of analyst forecasts on Integrated Research Limited stock, see the AU:IRI Stock Forecast page.

Integrated Research Limited Director Acquires Significant Shareholding

Integrated Research Limited announced a change in the director’s interest, with Mr. Michael Hitz acquiring 150,500 ordinary shares through on-market trades. This acquisition reflects a significant personal investment by Mr. Hitz, potentially indicating confidence in the company’s future prospects and stability, which may positively influence stakeholder perceptions.

The most recent analyst rating on (AU:IRI) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Integrated Research Limited stock, see the AU:IRI Stock Forecast page.

Integrated Research Limited Announces Director’s Share Acquisition

Integrated Research Limited has announced a change in the director’s interest, with Ms. Katherine Greenhill acquiring 90,000 ordinary shares through on-market trades. This acquisition, valued at $28,088.40, signifies a notable increase in Ms. Greenhill’s stake in the company, potentially impacting the company’s governance and shareholder dynamics.

The most recent analyst rating on (AU:IRI) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Integrated Research Limited stock, see the AU:IRI Stock Forecast page.