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): 0.36
• 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: 41 Neutral
• Price Target: AU$0.12 ▼(-17.86% Downside)

The score is held down primarily by weak financial performance (declining revenue, large losses, and negative operating cash flow). Technicals add further downside pressure with a clear downtrend and bearish momentum signals. Valuation is only modestly supportive because the negative P/E reflects unprofitable operations and no dividend data is available.

Positive Factors

Manageable leverage

A debt-to-equity ratio of 0.33 suggests leverage is moderate and interest burden is likely restrained, preserving financial flexibility. Over a multi-month horizon this supports the company’s ability to fund operations or targeted investments without excessive refinancing risk.

High gross profit margin

A high gross margin implies the core product/service retains pricing power and favorable direct-cost structure. If operating expenses are controlled, this structural advantage can convert to durable operating leverage and profitability over several quarters as top-line stabilizes.

Positive FCF-to-net income conversion

A FCF-to-net income ratio above 1 and large recent FCF growth indicate improving cash conversion dynamics. Over 2–6 months this structural improvement can reduce reliance on external funding and support working capital or product investment if sustained.

Negative Factors

Declining revenue

A recurring revenue decline of roughly 6% points to weakening market traction or customer retention. Persisting top-line contraction will erode scale, hinder operating leverage, and make margin recovery and cash generation more difficult absent clear commercial recovery catalysts.

Sustained negative profitability

Material negative margins signal the business is not covering operating costs, limiting reinvestment and value creation. Without sustained margin improvement, losses will continue to pressure equity and cash, constraining strategic options over the medium term.

Extremely negative ROE

An ROE near -440% reflects deep erosion of shareholder capital from operating losses. Structurally this undermines investor confidence, reduces ability to raise equity on favorable terms, and signals the need for strategic change to restore returns over coming quarters.

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

Income statement fundamentals are weak (revenue decline of -5.81% and net margin of -29.59% with negative EBIT/EBITDA margins). Balance sheet leverage is moderate (debt-to-equity 0.33) but extremely negative ROE (-439.83%) signals severe losses versus equity. Cash flow is also pressured with negative operating cash flow and volatile free cash flow.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.92M	21.92M	22.87M	19.61M	16.43M	12.84M
Gross Profit	21.92M	21.92M	-176.00K	-2.11M	-1.34M	13.32M
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 Assets	17.13M	17.13M	24.83M	28.77M	27.97M	18.29M
Cash, Cash Equivalents and Short-Term Investments	4.93M	4.93M	11.71M	11.74M	12.99M	3.13M
Total Debt	494.02K	494.02K	884.25K	1.31M	614.68K	1.07M
Total Liabilities	15.82M	15.82M	16.73M	16.66M	13.21M	8.92M
Stockholders Equity	1.48M	1.48M	8.28M	12.29M	14.95M	9.62M
Cash Flow
Free Cash Flow	-6.35M	-6.35M	185.34K	-1.36M	2.84M	-409.18K
Operating Cash Flow	-5.56M	-5.56M	229.40K	-1.20M	2.94M	-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	-398.06K	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: Positive
• RSI: Positive
• STOCH: 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 0.14 is above the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.15, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 24.38 is Positive, neither overbought nor oversold. The STOCH value of 34.44 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

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%
XF1	43 Neutral	AU$29.71M	-13.50	―	―	7.32%	67.11%
GTI	42 Neutral	AU$39.11M	-2.10	-259.27%	―	82.46%	58.45%
PRO	41 Neutral	AU$8.48M	-1.31	-133.07%	―	-4.90%	-52.78%
FLX	41 Neutral	AU$40.30M	-5.82	―	―	21.82%	6.83%
ICE	38 Underperform	AU$23.40M	-5.00	-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.

Prophecy International Holdings Ltd Announces Virtual AGM for 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.

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.