Prophecy International Holdings Ltd (PRO) AI Stock Analysis

• Market Cap: AU$8.85M
• Dividend Yield: N/A
• Average Volume (3M): 42.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• 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$0.14 ▼(-2.14% 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

Moderate leverage

A debt-to-equity of 0.33 is a durable strength: it limits refinancing risk and preserves balance sheet flexibility. With manageable leverage the company can fund product development, sales investment or weather revenue cyclicality without immediate pressure to restructure liabilities.

Improving free cash flow

A positive FCF-to-net-income ratio and a large recent FCF increase indicate improving cash conversion. If cash generation sustains beyond the reporting spike, it provides a structural source to fund operations, reduce external financing needs and support strategic investments.

High gross margins

High gross margins are characteristic of scalable software businesses and represent a durable competitive advantage. If management can control operating expenses, this gross margin base supports the path to sustainable profitability and higher operating leverage over time.

Negative Factors

Declining revenue

Recurring revenue decline erodes scale and weakens competitive position. Sustained top-line contraction limits the firm's ability to spread fixed costs, fund R&D and sales, and puts pressure on margins and long-term growth prospects unless product-market fit is restored.

Very negative ROE

A deeply negative ROE reflects substantial losses relative to shareholder equity and signals capital erosion. This structural weakness increases the likelihood of future equity or debt raises, diluting returns and constraining the company’s ability to invest organically.

Negative operating cash flow

Negative operating cash flow is a persistent operational problem: it forces reliance on financing and limits reinvestment capacity. Over the medium term, continued negative OCF undermines sustainability and magnifies execution risk unless operating cash conversion improves.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PRO, the sentiment is Positive. 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 0.28, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.96 is Neutral, neither overbought nor oversold. The STOCH value of 65.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$8.85M	-1.36	-133.07%	―	-4.90%	-52.78%
XF1	43 Neutral	AU$26.41M	-11.00	―	―	7.32%	67.11%
GTI	42 Neutral	AU$34.76M	-1.87	-259.27%	―	82.46%	58.45%
FLX	41 Neutral	AU$43.28M	-6.03	―	―	21.82%	6.83%
ICE	38 Underperform	AU$21.27M	-4.55	-135.50%	―	-48.98%	-12.82%

Prophecy International Holdings Ltd Corporate Events

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.

Prophecy International Terminates Proposed Merger with Complexica

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.

The most recent analyst rating on (AU:PRO) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Prophecy International Holdings Ltd stock, see the AU:PRO Stock Forecast page.