I Synergy Group Ltd. (IS3) AI Stock Analysis

• Market Cap: AU$19.09M
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.43
• Revenue Growth: -12.90%
• EPS Growth: 87.50%
• Country: AU
• Employees: N/A
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.00
• Shares Outstanding: 1,735,665,000
• 10 Day Avg. Volume: 243,690
• 30 Day Avg. Volume: 1,738,282
• PEG Ratio: 0.08
• Price to Book (P/B): -0.67
• Price to Sales (P/S): 1.77
• P/FCF Ratio: -1.93
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: AU$0.01 ▼(-50.00% Downside)

The score is primarily held down by weak financial performance—negative equity, ongoing losses, and persistent cash burn—indicating elevated solvency and funding risk. Technicals further detract, with the stock trading below key moving averages and negative MACD signaling a downtrend. Valuation is constrained by a loss-driven negative P/E and no indicated dividend yield.

Positive Factors

Narrowing reported losses

The material narrowing of losses versus 2022 suggests management has taken effective operational or cost measures. If sustained, this improves runway and reduces near-term funding needs, providing a clearer path toward break-even and enabling focus on structural recovery rather than emergency financing.

Improving cash flow trend

An absolute reduction in cash burn and improvement in free cash flow trends indicate the company may be stabilizing operations. Sustained FCF improvement would lower refinancing frequency, allow incremental reinvestment, and materially enhance long-term financial resilience if maintained across quarters.

Moderate absolute debt level

Relatively low nominal debt limits fixed interest and principal servicing pressure, preserving operating cash for restructuring or growth initiatives. While negative equity remains a problem, moderate debt reduces immediate insolvency risk and gives management more flexibility to execute a durable turnaround.

Negative Factors

Negative shareholders' equity

Persistent negative equity is a structural solvency concern that erodes creditor and investor confidence, restricts access to equity financing, and increases refinancing risk. Over the medium term it can force dilutive recapitalizations or restructuring, constraining strategic options.

Persistent cash burn

Consistently negative operating and free cash flow imply ongoing external funding needs. This chronic cash burn limits the company's ability to invest in growth, increases reliance on capital markets or lenders, and creates structural dilution or solvency risk if cash generation doesn't sustainably reverse.

Multi-year revenue contraction and weak margins

Declining revenues combined with deeply negative margins signal persistent demand or competitive challenges and weak operating leverage. Without durable top-line stabilization, margin recovery is difficult, undermining scalability and making the business model vulnerable over the next several quarters.

I Synergy Group Ltd. Business Overview & Revenue Model

Company Description

I Synergy Group Limited, an investment holding company, provides affiliate marketing network and solutions to advertisers and affiliates in Malaysia and Indonesia. The company operates VTRAK, an affiliate marketing platform that enables advertisers to offer commission to affiliates for marketing their products and services to users through affiliate marketing. It is also involved in the research, development, maintenance, and commercialization of proprietary learning management system; and provision of customized software design and development services and solutions. The company was founded in 2008 and is based in Kuala Lumpur, Malaysia.

How the Company Makes Money

I Synergy Group Ltd. generates revenue primarily through its affiliate marketing platform, where it earns commissions based on the performance of marketing campaigns it facilitates. The company charges businesses for access to its network of affiliates and takes a percentage of the sales or leads generated through its platform. Additionally, IS3 may also offer premium services or tools for enhanced analytics and targeted marketing, contributing to its revenue streams. Partnerships with various digital and e-commerce platforms can enhance its reach and effectiveness, further driving revenue.

I Synergy Group Ltd. Financial Statement Overview

Summary

Financials indicate a stressed turnaround: multi-year revenue contraction, negative EBIT/EBITDA and net margin (2024 ~-29%), persistent negative operating/free cash flow (2024 ~-0.88M), and critically negative shareholders’ equity across all years (2024 ~-2.5M). Losses have narrowed versus 2022–2023, but the company remains loss-making with ongoing cash burn and elevated solvency risk.

Income Statement

Revenue has been contracting for multiple years (2024 down ~2.3% YoY; declines also seen in 2023–2021), which is a clear top-line headwind. Profitability is still weak: 2024 net margin is about -29% and EBIT/EBITDA margins remain negative, indicating the business has not yet reached sustainable operating scale. The main positive is the magnitude of losses has improved materially versus 2022–2023 (net loss narrowed from very large 2022 levels), but the company is still loss-making with no clear return to profitability in the reported period.

Balance Sheet

The balance sheet is highly stressed, with negative shareholders’ equity across all reported years (2024 equity around -2.5M), which materially weakens financial flexibility and increases refinancing risk. Debt is moderate in absolute terms (2024 total debt ~0.6M), but negative equity makes leverage look structurally unfavorable and limits the company’s ability to absorb further operating losses. Total assets have also declined sharply versus earlier years, suggesting a reduced asset base to support the business.

Cash Flow

Cash generation is consistently negative: operating cash flow and free cash flow are below zero in every year shown, including 2024 operating/free cash flow around -0.88M. While free cash flow volatility includes a reported improvement in 2024 growth versus 2023, the absolute cash burn remains significant and implies ongoing funding needs. A key weakness is that cash flow has not yet demonstrated a sustained shift toward breakeven despite narrower accounting losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	856.47K	960.40K	1.04M	1.53M	1.91M	8.37M
Gross Profit	775.57K	960.40K	1.04M	1.34M	1.27M	2.92M
EBITDA	-81.61K	-248.94K	-663.53K	-7.15M	-88.57K	-356.38K
Net Income	-36.86K	-278.66K	-903.17K	-7.73M	-1.05M	-1.47M
Balance Sheet
Total Assets	1.17M	283.79K	558.19K	2.71M	2.53M	7.88M
Cash, Cash Equivalents and Short-Term Investments	953.75K	103.53K	127.01K	425.92K	907.00K	4.95M
Total Debt	405.48K	607.89K	627.18K	296.37K	203.00K	142.13K
Total Liabilities	2.27M	2.77M	2.92M	4.34M	5.07M	7.79M
Stockholders Equity	-1.13M	-2.52M	-2.40M	-1.19M	-2.58M	-1.42M
Cash Flow
Free Cash Flow	-613.87K	-879.99K	-364.69K	-8.72M	-2.55M	-780.00K
Operating Cash Flow	-613.49K	-879.99K	-358.15K	-7.44M	-2.24M	-450.00K
Investing Cash Flow	-379.00	0.00	-6.54K	4.27K	-324.00K	-313.00K
Financing Cash Flow	1.24M	792.63K	168.00K	1.69M	-1.33M	-304.00K

I Synergy Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAQ	62 Neutral	AU$1.80B	51.77	7.40%	―	1.75%	0.42%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
FMR	45 Neutral	AU$12.59M	-5.25	-22.53%	―	―	―
FRX	44 Neutral	AU$37.92M	-10.42	-166.02%	―	-11.11%	-71.43%
HFY	42 Neutral	AU$5.11M	-6.25	-11.62%	―	-9.44%	83.16%
IS3	40 Underperform	AU$19.09M	-110.00	―	―	-12.90%	87.50%

I Synergy Group Ltd. Corporate Events

I Synergy Group Wins Shareholder Backing for Security Consolidation

I Synergy Group Limited has announced a security consolidation affecting its ordinary fully paid shares (IS3) and options (IS3AD), with key dates set in February 2026 for deferred settlement trading, record date and issue date. The consolidation, which has already received shareholder approval, is aimed at reorganising the company’s capital structure and may influence the liquidity, trading price and overall market perception of its securities, although no additional operational or strategic information was provided in the notice.

The most recent analyst rating on (AU:IS3) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on I Synergy Group Ltd. stock, see the AU:IS3 Stock Forecast page.

I Synergy Group Calls Virtual Extraordinary General Meeting for February 2026

I Synergy Group Limited has called an extraordinary general meeting to be held virtually via the Automic Meeting Platform at 1:00pm AEDT on Monday, 2 February 2026, with eligibility to vote determined for shareholders on the register at 7:00pm AEDT on 31 January 2026. In line with recent corporate law changes, the company will not send physical copies of the meeting materials, instead making the notice and explanatory statement available online and strongly encouraging shareholders to lodge proxy votes by the proxy deadline, underscoring a continued shift toward digital shareholder engagement and broader participation in corporate decision-making.

The most recent analyst rating on (AU:IS3) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on I Synergy Group Ltd. stock, see the AU:IS3 Stock Forecast page.

I Synergy Group Expands AI Infrastructure Leasing

I Synergy Group Limited’s subsidiary, ISG Technology Ltd, has entered into lease agreements with four entities to provide high-performance computing hardware and AI software. These agreements, starting in November 2025, aim to enhance the lessees’ business operations and competitiveness in AI-driven markets. The strategic importance of these agreements lies in their alignment with I Synergy’s strategy to commercialize its AI infrastructure and generate recurring revenue, supporting the company’s growth in the evolving digital economy.

I Synergy Group Ltd. Reports Quarterly Cash Flow and Financing Activities

I Synergy Group Ltd. reported its quarterly cash flow, highlighting a net cash outflow from operating activities amounting to $371,000 for the current quarter and $665,000 for the year to date. Despite this, the company managed to secure $116,000 in net cash from financing activities during the quarter, contributing to a total of $1,261,000 for the year. This financial update indicates ongoing operational challenges but also reflects the company’s ability to raise funds, which may support its strategic initiatives and market positioning.

I Synergy Group Advances AI and Digital Initiatives

I Synergy Group Limited has made significant strides in its strategic direction by initiating early-stage activities in AI infrastructure and digital technologies, aiming for long-term growth. The company entered into a formal agreement with Treasure Global Inc. to develop AI infrastructure, supported by the establishment of a subsidiary, ISG Technology Ltd. Additionally, I Synergy formed a strategic partnership with Octagram Investment Limited to collaborate on AI-powered marketing tools and gaming solutions. These initiatives are not expected to have a material financial impact in the current year but lay the groundwork for future growth.