Prophecy International Holdings Ltd (PRO) AI Stock Analysis

• Market Cap: AU$8.48M
• Dividend Yield: N/A
• Average Volume (3M): 42.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -4.90%
• EPS Growth: -52.78%
• Country: AU
• Employees: 24
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 73,752,940
• 10 Day Avg. Volume: 44,413
• 30 Day Avg. Volume: 42,382
• PEG Ratio: -0.09
• Price to Book (P/B): 21.49
• Price to Sales (P/S): 1.45
• P/FCF Ratio: -4.99
• 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: 46 Neutral
• Price Target: AU$0.11 ▼(-22.86% Downside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held down primarily by weak financial performance, including declining revenue, sustained losses, and negative operating cash flow. Technicals provide some offset with short-term strength above the 20D/50D averages, but the longer-term trend remains negative and momentum signals are mixed. Valuation is not supportive given the negative P/E and lack of dividend yield data.

Positive Factors

Manageable leverage

A debt-to-equity of 0.33 implies moderate leverage and relatively limited interest burden. That financial flexibility helps fund operations or targeted investments without excessive refinancing risk, a durable advantage that supports resilience through multi-month cycles.

High gross profit margin

A high gross profit margin indicates product economics with low direct costs. For a software application company this implies scalable revenue can flow through to margins if operating expenses are controlled, supporting a sustainable path to profitability over time.

Improving free cash flow conversion

A large FCF increase and FCF-to-net-income of 1.14 show recent improvements in cash conversion. If sustained, stronger free cash flow reduces dependence on external funding, funds product development or working capital, and materially strengthens medium-term viability.

Negative Factors

Declining revenue

Revenue decline of -5.81% signals weakening top-line momentum. Persistent revenue contraction erodes scale, reduces ability to absorb fixed costs, and makes margin recovery harder, reflecting a structural challenge in market positioning or product adoption.

Sustained unprofitability

A roughly -29.6% net margin and negative EBIT/EBITDA indicate ongoing operating losses. Sustained unprofitability drains equity, limits reinvestment capacity, and makes the business dependent on achieving meaningful revenue growth or structural cost cuts to reach break-even.

Negative operating cash flow

Negative operating cash flow creates persistent funding needs and raises reliance on external financing or equity raises. This structural cash-generation weakness increases refinancing and dilution risk unless operating cash generation sustainably turns positive.

Prophecy International Holdings Ltd Business Overview & Revenue Model

Company Description

Prophecy International Holdings Limited engages in the design, development, and marketing of computer software applications and services in Australia, the United States, Europe, and Asia. It offers Snare, a security analytics platform that converges logs from network, identity, endpoint, application, and other security relevant sources to generate behavioral alerts and facilitate rapid incident analysis, investigation, and response; and eMite, a reporting and analytics solution focused on driving operations and customer engagement from the contact/call centre and customer experience market segments, which provides chat, chat bots, CRM, service ticketing, work force management, transcription, sentiment analysis, survey, IVR, email, contact centre software, and other services. The company serves banking and finance, public sector, defence and military, healthcare, utilities, manufacturing, and retail industries. Prophecy International Holdings Limited was founded in 1980 and is headquartered in Adelaide, Australia.

How the Company Makes Money

The company generates revenue primarily through the sale of its software products and services, which include licensing fees, subscription models, and maintenance contracts. Additionally, Prophecy International Holdings Ltd earns money from consulting services and custom software development tailored to meet specific client needs. Key revenue streams include ongoing subscriptions for its cloud-based solutions and performance monitoring tools, which provide recurring income. The company may also benefit from strategic partnerships with other tech firms, enabling it to expand its market reach and enhance its product offerings, thus contributing to its overall earnings.

Prophecy International Holdings Ltd Financial Statement Overview

Summary

Weak fundamentals: revenue declined (-5.81%) and profitability is materially negative (net margin -29.59%) with negative EBIT/EBITDA margins. Leverage is moderate (debt-to-equity 0.33), but extremely negative ROE (-439.83%) and negative operating cash flow indicate significant financial strain despite some positive cash-to-income relationship (FCF to net income 1.14).

Income Statement

Prophecy International Holdings Ltd has experienced declining revenue growth with a negative rate of -5.81% in the latest period, indicating potential challenges in maintaining its market position. The company shows a negative net profit margin of -29.59%, reflecting ongoing profitability issues. Despite a high gross profit margin, the negative EBIT and EBITDA margins suggest operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio of 0.33 indicates moderate leverage, which is manageable but should be monitored. However, the return on equity is significantly negative at -439.83%, highlighting substantial losses relative to shareholder equity. The equity ratio is not explicitly provided, but the company's financial stability appears to be under pressure.

Cash Flow

The operating cash flow is negative, and the free cash flow growth rate is volatile, showing a significant increase of 534.28% in the latest period. The free cash flow to net income ratio is positive at 1.14, suggesting that cash flow generation relative to net income is somewhat stable, but overall cash flow management remains a concern.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	21.92M	22.87M	19.61M	16.43M	12.84M
Gross Profit	21.92M	-176.00K	-2.11M	-1.34M	13.32M
EBITDA	-5.70M	-3.15M	-1.37M	-174.00K	-796.25K
Net Income	-6.49M	-4.24M	-2.49M	-1.71M	-1.97M
Balance Sheet
Total Assets	17.13M	24.83M	28.77M	27.97M	18.29M
Cash, Cash Equivalents and Short-Term Investments	4.93M	11.71M	11.74M	12.99M	3.13M
Total Debt	494.02K	884.25K	1.31M	614.68K	1.07M
Total Liabilities	15.82M	16.73M	16.66M	13.21M	8.92M
Stockholders Equity	1.48M	8.28M	12.29M	14.95M	9.62M
Cash Flow
Free Cash Flow	-6.35M	185.34K	-1.36M	2.84M	-409.18K
Operating Cash Flow	-5.56M	229.40K	-1.20M	2.94M	-376.47K
Investing Cash Flow	-785.38K	-39.57K	-167.30K	-96.45K	-32.71K
Financing Cash Flow	-457.13K	-260.39K	-398.06K	6.75M	-539.52K

Prophecy International Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PRO, the sentiment is Negative. The current price of 0.14 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.13, and below the 200-day MA of 0.27, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.43 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:PRO.

Prophecy International Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRO	46 Neutral	AU$8.48M	-1.25	-133.07%	―	-4.90%	-52.78%
XF1	43 Neutral	AU$23.11M	-10.50	―	―	7.32%	67.11%
GTI	42 Neutral	AU$35.20M	-1.89	-259.27%	―	82.46%	58.45%
FLX	41 Neutral	AU$37.31M	-4.96	―	―	21.82%	6.83%
ICE	38 Underperform	AU$22.34M	-4.43	-135.50%	―	-48.98%	-12.82%

Prophecy International Holdings Ltd Corporate Events

Prophecy International Swings to Deeper Half-Year Loss as Revenue Slides

Prophecy International reported a 17% year-on-year decline in revenue from continuing operations to $9.66 million for the half-year ended 31 December 2025, reflecting softer trading conditions. The company’s net tangible assets remained negative due to its heavy weighting toward intangible assets such as goodwill, right-of-use assets and intellectual property.

The group’s loss before tax widened sharply to $5.65 million from $1.66 million a year earlier, and no interim dividend was declared. Prophecy’s cash balance fell to $2.6 million from $9.1 million over the year, underscoring mounting financial pressure and resulting in a negative net tangible asset position of $0.115 per security, which may concern shareholders monitoring balance sheet strength and dilution risk.

The most recent analyst rating on (AU:PRO) stock is a Hold with a A$0.11 price target. To see the full list of analyst forecasts on Prophecy International Holdings Ltd stock, see the AU:PRO Stock Forecast page.

Prophecy International Plans New Share and Option Issue on ASX

Prophecy International Holdings has announced a proposed issue of securities comprising up to 6,500,000 ordinary fully paid shares and 3,500,000 options converting to ordinary shares. The issuance, structured as a placement or other type of offer, is scheduled for 5 March 2026 and reflects the company’s plan to raise new equity capital and adjust its capital structure, which may impact shareholder dilution and support future corporate initiatives.

The proposed securities will be quoted on the ASX subject to compliance with listing rules and the completion of required documentation. By proceeding with this issue, Prophecy International is signalling continued engagement with capital markets, which could influence its financial flexibility, liquidity of its shares, and its positioning among peer companies seeking growth funding on the Australian exchange.

The most recent analyst rating on (AU:PRO) stock is a Hold with a A$0.11 price target. To see the full list of analyst forecasts on Prophecy International Holdings Ltd stock, see the AU:PRO Stock Forecast page.

Prophecy International Raises $0.975m in Premium-Priced Share Placement

Prophecy International Holdings has completed a $0.975 million equity raising through a share placement of 6.5 million new shares at $0.15 each, representing a significant premium to both its last traded price and 10-day VWAP. The funds will be applied primarily to additional working capital, strengthening the company’s balance sheet and operational flexibility.

The placement was executed in a single tranche to an existing sophisticated investor under the company’s ASX Listing Rule 7.1 capacity, with all new shares expected to be allotted on 5 March 2026. The investor has also been granted an option to subscribe for a further 3.5 million shares at the same price within nine months, signaling continued support from key capital providers and potential further funding for the business.

The most recent analyst rating on (AU:PRO) stock is a Hold with a A$0.11 price target. To see the full list of analyst forecasts on Prophecy International Holdings Ltd stock, see the AU:PRO Stock Forecast page.

Prophecy International Holdings Ltd Announces AGM Voting Results

Prophecy International Holdings Ltd held its Annual General Meeting on November 28, 2025, where several resolutions were voted on by shareholders. Key resolutions included the re-election of directors and the approval of a long-term incentive plan. Most resolutions were carried with significant majorities, except for one which did not achieve the required support. The outcomes of these votes are crucial for the company’s governance and strategic direction, impacting its operational and market positioning.

The most recent analyst rating on (AU:PRO) stock is a Sell with a A$0.17 price target. To see the full list of analyst forecasts on Prophecy International Holdings Ltd stock, see the AU:PRO Stock Forecast page.