Prophecy International Holdings Ltd (PRO) AI Stock Analysis

• Market Cap: AU$7.46M
• Dividend Yield: N/A
• Average Volume (3M): 42.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• 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: 80,252,940
• 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: 39 Underperform
• Price Target: AU$0.09 ▼(-37.86% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held down primarily by weak financial performance (declining revenue, significant losses, and negative operating cash flow). Technicals add further pressure with a clear downtrend and negative MACD, despite oversold readings. Valuation is also constrained because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Manageable Leverage

A debt-to-equity ratio of 0.33 implies the firm is not over-levered, preserving financial flexibility. Over a 2-6 month horizon this moderate leverage reduces bankruptcy risk and interest burden, enabling the company to fund operational needs or strategic investments without excessive financing strain.

Positive Free Cash Flow Conversion

A FCF-to-net-income ratio above 1 and a recent strong FCF uptick indicate the business can convert reported earnings (or losses) into cash. Durable cash generation potential supports runway, operational funding and reduces reliance on external capital if sustained beyond near-term volatility.

High Gross Profit Margin

A high gross margin suggests the core software offerings have solid unit economics and pricing power. Structurally this provides scope to reach profitability by controlling operating costs or scaling revenue, making recovery feasible if top-line declines are addressed and SG&A is optimized.

Negative Factors

Declining Revenue

Sustained revenue decline undermines scale benefits in a software business and signals weakening product demand or market share losses. Over several months this reduces operating leverage, pressures margins, and limits ability to invest in product, sales, or R&D necessary for a durable turnaround.

Persistent Negative Profitability

Deep negative margins indicate current operations do not cover underlying costs. Persistently negative EBIT/EBITDA erodes equity, constrains reinvestment, and increases the need for external funding. Without structural cost reductions or revenue recovery, profitability remains an enduring risk.

Negative Operating Cash Flow

Negative operating cash flow shows core operations consume cash, reducing runway and increasing financing dependence. Over a medium-term horizon this limits the company's ability to fund growth or absorb shocks, making strategic investments and debt servicing more challenging unless 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 is declining (-5.81%) and profitability is deeply negative (net margin -29.59%) with negative EBIT/EBITDA margins. Balance sheet leverage is moderate (debt-to-equity 0.33) but ROE is extremely negative (-439.83%), and cash flow is pressured with negative operating cash flow despite a positive free cash flow to net income ratio (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	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	19.85M	21.92M	22.87M	19.61M	16.43M	12.84M
Gross Profit	17.47M	21.92M	-176.00K	-2.11M	-1.34M	13.32M
EBITDA	-7.77M	-5.70M	-3.15M	-1.37M	-174.00K	-796.25K
Net Income	-10.29M	-6.49M	-4.24M	-2.49M	-1.71M	-1.97M
Balance Sheet
Total Assets	11.59M	17.13M	24.83M	28.77M	27.97M	18.29M
Cash, Cash Equivalents and Short-Term Investments	2.61M	4.93M	11.71M	11.74M	12.99M	3.13M
Total Debt	896.17K	494.02K	884.25K	1.31M	614.68K	1.07M
Total Liabilities	15.85M	15.82M	16.73M	16.66M	13.21M	8.92M
Stockholders Equity	-4.10M	1.48M	8.28M	12.29M	14.95M	9.62M
Cash Flow
Free Cash Flow	-5.39M	-6.35M	185.34K	-1.36M	2.84M	-409.18K
Operating Cash Flow	-4.61M	-5.56M	229.40K	-1.20M	2.94M	-376.47K
Investing Cash Flow	-1.21M	-785.38K	-39.57K	-167.30K	-96.45K	-32.71K
Financing Cash Flow	-355.13K	-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: Neutral
• 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 0.11, above the 50-day MA of 0.11, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.85 is Neutral, neither overbought nor oversold. The STOCH value of 40.48 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$19.81M	-13.76	46.05%	―	7.32%	67.11%
GTI	42 Neutral	AU$26.07M	-3.44	-123.67%	―	82.46%	58.45%
FLX	41 Neutral	AU$35.82M	-3.17	-151.85%	―	21.82%	6.83%
ICE	41 Neutral	AU$18.61M	-3.83	-153.09%	―	-48.98%	-12.82%
PRO	39 Underperform	AU$7.46M	-0.46	783.67%	―	-4.90%	-52.78%

Prophecy International Holdings Ltd Corporate Events

Prophecy International Issues 6.5 Million New Shares Under Compliance Notice

Prophecy International Holdings has issued 6,500,000 fully paid ordinary shares without a disclosure document under the Corporations Act’s small-scale offering provisions, and has notified the Australian Securities Exchange of this capital raising. The company confirmed it is up to date with its financial reporting and continuous disclosure obligations and stated it is not aware of any excluded information, signalling that the new share issue is being conducted under standard compliance settings for existing and prospective shareholders.

An accompanying Appendix 2A detailing the share issue was lodged with the ASX on 5 March 2026, formalising the expansion of the company’s issued capital base. The board-authorised action modestly increases Prophecy International’s equity capital, which may support future operational or strategic initiatives while slightly diluting existing shareholders’ stakes.

The most recent analyst rating on (AU:PRO) stock is a Hold with a A$0.09 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 Corrects Issue Date Error in ASX Appendix 2A

Prophecy International Holdings Ltd has corrected a clerical error in an Appendix 2A lodged with the ASX earlier in the day. The company clarified that the correct issue date for the relevant securities is 5 March 2026, rather than the previously stated 2 March 2026, ensuring regulatory accuracy and clear guidance for investors and market participants.

The most recent analyst rating on (AU:PRO) stock is a Hold with a A$0.09 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 Issues 3.5 Million Unquoted Options Converting to Shares

Prophecy International Holdings has notified the market of the issue of 3,500,000 unquoted options that convert into ordinary shares, with an issue date of 5 March 2026. The new options represent a fresh class of securities that are not quoted, and are not intended to be quoted, on the ASX, indicating a targeted capital management or incentive structure that does not immediately affect the company’s public float but may lead to future dilution for existing shareholders if exercised.

The issuance forms part of previously announced transactions, signaling follow-through on the company’s established equity plans rather than a new capital raising initiative. For stakeholders, the move clarifies the scale and timing of option-based commitments already in place, providing greater visibility on potential future ordinary share expansion and its implications for ownership and earnings per share over time.

The most recent analyst rating on (AU:PRO) stock is a Hold with a A$0.09 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 Seeks ASX Quotation for 6.5 Million New Shares

Prophecy International Holdings Ltd has applied for quotation on the ASX of 6,500,000 ordinary fully paid shares under code PRO, with an issue date of March 2, 2026. The new securities arise from transactions previously flagged to the market, indicating an expansion of the company’s listed share base that may affect existing shareholder dilution and trading liquidity once quotation is granted.

The announcement, lodged on March 5, 2026, is structured as an Appendix 2A application under ASX Listing Rules. While it does not detail the underlying transaction, the move formalises the transition of these shares to quoted status, marking a further step in Prophecy International’s capital management and access to equity markets.

The most recent analyst rating on (AU:PRO) stock is a Hold with a A$0.09 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 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.