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Prophecy International Holdings Ltd (AU:PRO)
ASX:PRO
Australian Market

Prophecy International Holdings Ltd (PRO) AI Stock Analysis

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AU:PRO

Prophecy International Holdings Ltd

(Sydney:PRO)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
AU$0.14
▼(-10.63% Downside)
The overall stock score is primarily impacted by significant financial challenges, including declining revenues and negative profitability margins. Technical analysis indicates a bearish trend with the stock trading below key moving averages. Valuation concerns are highlighted by a negative P/E ratio and lack of dividend yield. These factors collectively suggest a cautious outlook for the stock.
Positive Factors
Recurring Revenue Streams
The company's focus on subscription models for cloud solutions provides a stable and predictable revenue stream, enhancing long-term financial stability.
Moderate Leverage
Moderate leverage suggests manageable debt levels, allowing the company to potentially invest in growth opportunities without excessive financial strain.
Product Diversification
A diverse product portfolio across multiple sectors reduces dependency on a single market, providing resilience against sector-specific downturns.
Negative Factors
Declining Revenue Growth
Declining revenue growth indicates potential challenges in market position and competitiveness, which could impact future profitability and expansion.
Negative Profitability Margins
Negative profitability margins highlight operational inefficiencies and the need for cost management improvements to achieve sustainable profitability.
Volatile Cash Flows
Volatile cash flows can hinder the company's ability to fund operations and growth initiatives, posing a risk to long-term financial health.

Prophecy International Holdings Ltd (PRO) vs. iShares MSCI Australia ETF (EWA)

Prophecy International Holdings Ltd Business Overview & Revenue Model

Company DescriptionProphecy 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 MoneyThe 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
Prophecy International Holdings Ltd faces significant financial challenges, with declining revenues, negative profitability margins, and volatile cash flows. The company needs to address operational inefficiencies and improve its financial stability to enhance shareholder value. While leverage is moderate, the negative return on equity and cash flow issues highlight areas for improvement.
Income Statement
35
Negative
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
45
Neutral
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
40
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue21.92M21.92M22.87M19.61M16.43M12.84M
Gross Profit21.92M21.92M-176.00K-2.11M-1.34M13.32M
EBITDA-5.70M-5.70M-3.15M-1.37M-174.00K-796.25K
Net Income-6.49M-6.49M-4.24M-2.49M-1.71M-1.97M
Balance Sheet
Total Assets17.13M17.13M24.83M28.77M27.97M18.29M
Cash, Cash Equivalents and Short-Term Investments4.93M4.93M11.71M11.74M12.99M3.13M
Total Debt494.02K494.02K884.25K1.31M614.68K1.07M
Total Liabilities15.82M15.82M16.73M16.66M13.21M8.92M
Stockholders Equity1.48M1.48M8.28M12.29M14.95M9.62M
Cash Flow
Free Cash Flow-6.35M-6.35M185.34K-1.36M2.84M-409.18K
Operating Cash Flow-5.56M-5.56M229.40K-1.20M2.94M-376.47K
Investing Cash Flow-785.38K-785.38K-39.57K-167.30K-96.45K-32.71K
Financing Cash Flow-457.13K-457.13K-260.39K-398.06K6.75M-539.52K

Prophecy International Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.16
Price Trends
50DMA
0.17
Negative
100DMA
0.24
Negative
200DMA
0.34
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
43.62
Neutral
STOCH
80.00
Neutral
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 0.16 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.17, and below the 200-day MA of 0.34, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.62 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
44
Neutral
AU$33.01M-15.007.32%67.11%
41
Neutral
AU$11.80M-1.82-133.07%-4.90%-52.78%
41
Neutral
AU$47.76M-6.9021.82%6.83%
39
Underperform
AU$23.45M-1.43-259.27%82.46%58.45%
38
Underperform
AU$25.53M-5.45-135.50%-48.98%-12.82%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:PRO
Prophecy International Holdings Ltd
0.16
-0.38
-70.37%
AU:XF1
Xref Ltd
0.15
-0.06
-28.57%
AU:FLX
Felix Group Holdings Ltd.
0.16
-0.04
-20.00%
AU:GTI
Gratifii Ltd
0.06
-0.03
-33.33%
AU:ICE
iCetana Ltd.
0.05
0.03
150.00%

Prophecy International Holdings Ltd Corporate Events

Prophecy International Holdings Ltd Announces AGM Voting Results
Nov 28, 2025

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.

Prophecy International Terminates Proposed Merger with Complexica
Nov 26, 2025

Prophecy International Holdings Ltd has announced the termination of its proposed merger with Complexica Pty Ltd, as both parties agreed it was not in their best interests. This decision allows Prophecy to focus its resources on its core business operations. The planned on-market share buyback of up to $1.5 million, which was contingent on the merger’s completion, will also not proceed. Despite the merger’s termination, Prophecy and Complexica may explore future collaboration opportunities related to product implementation.

Prophecy International Holdings Ltd Announces Virtual AGM for 2025
Oct 27, 2025

Prophecy International Holdings Ltd has announced that its Annual General Meeting (AGM) will be held virtually on November 28, 2025, at 10:00 am Adelaide time. The company encourages shareholders to lodge proxy forms in advance and participate in live online voting through a designated platform. This virtual format reflects a growing trend towards digital engagement in corporate governance, potentially increasing accessibility for stakeholders and aligning with modern technological practices.

Prophecy International Holdings Ltd Releases 2025 Corporate Governance Statement
Sep 29, 2025

Prophecy International Holdings Ltd has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting its commitment to transparency and accountability. This move is expected to reinforce the company’s position in the industry by demonstrating its dedication to robust governance practices, potentially impacting stakeholder confidence positively.

Prophecy International Releases 2024-2025 Annual Report
Sep 29, 2025

Prophecy International Holdings Ltd has released its annual report for 2024 and 2025, highlighting key changes in its board of directors with the resignation of Matthew T Michalewicz. The announcement provides insights into the company’s governance and operational strategies, which may influence its market positioning and stakeholder interests.

Prophecy International Holdings Ltd Releases 2025 Annual Report
Sep 29, 2025

Prophecy International Holdings Ltd has released its annual report for 2025, highlighting changes in its board of directors with the resignation of Matthew T Michalewicz. The report also outlines the company’s corporate governance practices and provides contact information for various stakeholders, indicating a structured approach to corporate management and stakeholder engagement.

Prophecy International Announces CEO Resignation
Sep 14, 2025

Prophecy International Holdings Ltd announced the resignation of CEO Brad Thomas, who significantly contributed to the growth of emite and Snare since joining the company in 2016. Chairman Ed Reynolds will temporarily assume the role of acting CEO, ensuring continuity in leadership until a new CEO is appointed.

Prophecy International Announces Board Resignation Amid Merger Plans
Sep 12, 2025

Prophecy International Holdings Ltd announced the resignation of Matthew Michalewicz from its Board to prevent a conflict of interest during the assessment of a business update related to a proposed merger with Complexica. The company expressed gratitude for Michalewicz’s contributions and indicated a willingness to welcome him back post-merger, highlighting the strategic importance of the merger for its future operations.

Prophecy International Reviews Business Performance Amid Snare Challenges
Sep 7, 2025

Prophecy International Holdings Ltd has conducted a business performance review, focusing on its Snare product, which has experienced higher churn rates and reduced sales activity, particularly in the US. The company is taking measures to address these issues, including cost-saving initiatives and promoting new Snare releases. Despite these challenges, Prophecy remains optimistic about Snare’s long-term prospects and the potential of its channel partnerships. Additionally, the company is undergoing a merger with Complexica Pty Ltd, which may have implications for its business operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 28, 2025