I Synergy Group Ltd. (IS3) AI Stock Analysis

• Market Cap: AU$26.03M
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.33
• 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: 44 Neutral
• Price Target: AU$0.02 ▼(-25.00% Downside)

The score is primarily weighed down by weak financial performance (shrinking revenue, ongoing losses, persistent cash burn) and high balance-sheet risk from negative equity. Technicals add only modest support due to mixed trend and overbought momentum signals, while valuation remains constrained by loss-making status and no dividend data.

Positive Factors

AI Infrastructure Expansion

The expansion into AI infrastructure leasing aligns with I Synergy's strategy to generate recurring revenue, supporting growth in the digital economy.

Strategic Partnerships

Strategic partnerships in AI and digital technologies position I Synergy for long-term growth, enhancing its market competitiveness and innovation capacity.

AI and Digital Initiatives

Early-stage AI and digital initiatives lay the groundwork for future growth, aligning with industry trends and expanding the company's technological capabilities.

Negative Factors

Negative Shareholders’ Equity

Negative equity weakens financial flexibility and increases refinancing risk, limiting the company's ability to absorb further operating losses.

Ongoing Cash Burn

Persistent negative cash flow indicates ongoing funding needs, challenging the company's ability to sustain operations without external financing.

Revenue Contraction

Multi-year revenue contraction presents a top-line headwind, indicating challenges in market demand and competitive positioning.

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

I Synergy Group Ltd. is facing severe financial challenges, with declining revenues and high operational losses leading to negative profit margins. The balance sheet reveals a troubling capital structure, with negative equity and high liabilities posing significant financial risk. The persistent negative cash flows highlight operational inefficiencies and a need for strategic financial management to stabilize the company's finances.

Income Statement

The company's revenue has significantly declined over the past few years, with a dramatic decrease from 2019 to 2024, indicating a negative growth trajectory. Gross profit margin is high, but this is overshadowed by consistent net losses, resulting in negative net profit margins. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company has a concerning debt-to-equity ratio due to negative stockholders' equity, indicating financial instability. The equity ratio is negative, reflecting a high level of liabilities compared to assets. This suggests significant financial leverage and potential risk in the company's capital structure.

Cash Flow

The company has consistently negative free cash flow, which is worsening over time, indicating operational cash constraints. The operating cash flow to net income ratio is negative, suggesting that the company's operations are not generating sufficient cash to cover its 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$1.78B	51.06	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$15.11M	-6.30	-22.53%	―	―	―
IS3	44 Neutral	AU$26.03M	-150.00	―	―	-12.90%	87.50%
FRX	44 Neutral	AU$34.88M	-9.58	-166.02%	―	-11.11%	-71.43%
HFY	42 Neutral	AU$4.09M	-6.25	-11.62%	―	-9.44%	83.16%

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.