Idox plc (IDOX) AI Stock Analysis

• Market Cap: £321.93M
• Dividend Yield: 1.04%
• Average Volume (3M): 381.70K
• Price to Earnings (P/E): 52.3
• Beta (1Y): 0.25
• Revenue Growth: 10.93%
• EPS Growth: 12.30%
• Country: UK
• Employees: 682
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 461,682,040
• 10 Day Avg. Volume: 582,316
• 30 Day Avg. Volume: 381,702
• PEG Ratio: 3.19
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 3.58
• P/FCF Ratio: 18.02
• 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): 0.03
• Revenue Forecast (FY): £99.17M

• Rating: 65 Neutral
• Price Target: 76.00p ▲(10.14% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is primarily supported by improving financial performance (revenue growth, better operating profitability, and a de-risked balance sheet), partially offset by uneven free-cash-flow progression. Technicals are neutral with constructive longer-term trend but muted momentum, while valuation is a key drag due to a high P/E and only modest dividend yield.

Positive Factors

Steady revenue expansion

Sustained top-line growth through 2025 indicates improving product-market fit and demand for Idox's software among core customers. Over 2–6 months this supports predictable renewal pipelines and stronger pricing leverage for license and subscription revenue, reinforcing long-term revenue durability.

Improved balance sheet

Material reduction in leverage enhances financial flexibility and lowers refinancing risk. A de‑risked balance sheet supports continued investment in product development, funded acquisitions or larger public-sector bids, and provides resilience against budget volatility in customers over the medium term.

Consistent cash generation

Repeatable positive operating cash flow and strengthened cash conversion underpin sustainable funding for maintenance, R&D and services delivery. Reliable cash generation improves self-funding capacity for projects and reduces dependence on external financing over the coming months.

Negative Factors

Choppy free cash flow

Irregular free cash flow growth and episodic declines point to working-capital swings and timing of services receipts. That variability makes capital allocation, dividend predictability and reinvestment plans harder to manage, reducing operational predictability over the medium term.

Net margin volatility

Volatile net margins suggest earnings remain sensitive to non-operating items, cost swings or one-off effects despite improving operating profitability. This limits long-term earnings visibility and could constrain consistent margin expansion typical of scalable software models.

Public-sector concentration

High exposure to public-sector customers brings structural risks from budget cycles, procurement delays and policy shifts. Reliance on tenders and renewals can produce lumpy revenue and slower decision cycles, weighing on sustained growth and contract lead times over the medium term.

Idox plc Business Overview & Revenue Model

Company Description

IDOX plc, through its subsidiaries, provides software and services for the management of local government and other organizations. The company operates in two segments, Public Sector Software and Engineering Information Management. It offers on-premise and cloud software solutions for the management of planning, building control, land charges and gazetteer managements, estates, street numbering, environmental health, trading standards, licensing, address management, and other geospatial information services. The company also provides specialist software to support inspection and enforcement of standards, including environmental health, licensing, trading standards, public sector housing, elections, management of sexual health clinics, social directory services, grants funding, management of municipal transport, facilities management, assets and records management, and management of education, health, and care plans. In addition, it engages in the provision of online information, advice and guidance, information portals, and self-service tools to support delivery of adult social care, children's services, and special educational needs and disabilities services; and in delivery of online funding information and advice services. Further, the company offers computer aided facilities management solution that enables property directors to manage property portfolios; command and control traffic management systems; real-time passenger information systems; fleet management systems; and electoral registration and management systems, including postal vote checking, tablet canvassing, election count reporting and boundary management. It has operations primarily in the United Kingdom, the United States, Europe, and Australia. The company was incorporated in 2000 and is based in Reading, the United Kingdom.

How the Company Makes Money

Idox generates revenue primarily through the sale of software licenses, subscription services, and maintenance contracts. Its key revenue streams include the sale of its proprietary software products, which are often offered under a Software as a Service (SaaS) model, allowing for recurring revenue through subscriptions. Additionally, Idox earns income from consultancy and support services that help clients implement and optimize their software solutions. The company also benefits from strategic partnerships with public sector organizations, which can lead to long-term contracts and a steady flow of income. Overall, Idox's ability to cater to the specific needs of the public sector and its focus on developing innovative solutions contribute significantly to its revenue generation.

Idox plc Financial Statement Overview

Summary

Income statement strength (78) reflects steady revenue expansion and improving operating profitability, while the balance sheet (76) shows meaningfully reduced leverage and manageable risk. Cash flow (70) is consistently positive, but free cash flow growth has been uneven, tempering overall quality and predictability.

Income Statement

Revenue has expanded steadily from 2022–2025, with a notable acceleration in 2025. Profitability is solid for an application software model, with gross margin consistently strong and operating profitability improving into 2024–2025. The main weakness is net margin volatility over the period (notably weaker in 2020 and lower than 2021 peaks), suggesting earnings are still somewhat sensitive to non-operating items or cost swings despite better operating performance recently.

Balance Sheet

Leverage has improved meaningfully versus 2020–2021, with debt levels now modest relative to equity and equity building over time, which supports financial flexibility. Returns on equity are steady and healthy for the sector but not exceptional, and total assets have grown without a corresponding step-change in returns. Overall balance sheet risk looks manageable, though the company has a history of higher leverage that investors should keep in mind.

Cash Flow

The business generates consistently positive operating cash flow and free cash flow across the period, and cash conversion has strengthened, with free cash flow in 2025 roughly in line with reported earnings. However, free cash flow growth is choppy (including declines in 2022 and 2025), and operating cash flow relative to revenue remains moderate, pointing to working-capital variability and less predictable year-to-year cash progression than profits.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	89.83M	87.60M	73.28M	66.18M	62.19M
Gross Profit	65.28M	63.08M	57.24M	51.13M	45.05M
EBITDA	24.94M	22.04M	20.31M	18.61M	18.54M
Net Income	6.16M	5.26M	5.58M	5.04M	6.03M
Balance Sheet
Total Assets	154.36M	146.48M	151.47M	130.03M	133.57M
Cash, Cash Equivalents and Short-Term Investments	8.27M	11.66M	14.82M	13.86M	18.28M
Total Debt	24.36M	23.51M	30.68M	22.34M	28.87M
Total Liabilities	71.48M	68.20M	78.20M	62.61M	72.76M
Stockholders Equity	82.87M	78.28M	73.28M	67.42M	60.81M
Cash Flow
Free Cash Flow	17.86M	12.44M	10.08M	8.09M	10.81M
Operating Cash Flow	18.54M	21.11M	18.60M	15.65M	16.55M
Investing Cash Flow	-17.02M	-11.00M	-22.55M	-9.84M	-5.54M
Financing Cash Flow	-5.19M	-13.63M	4.71M	-10.62M	-23.08M

Idox plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IDOX, the sentiment is Positive. The current price of 69 is below the 20-day moving average (MA) of 70.80, below the 50-day MA of 70.13, and above the 200-day MA of 63.82, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:IDOX.

Idox plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GBG	70 Outperform	£441.96M	52.48	1.56%	1.73%	-0.18%	11.49%
TRB	70 Outperform	£152.12M	18.83	15.34%	1.71%	3.48%	318.89%
NET	68 Neutral	£202.88M	48.57	9.59%	0.80%	22.80%	-32.13%
IDOX	65 Neutral	£321.93M	52.30	8.06%	1.04%	10.93%	12.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPA	58 Neutral	£80.44M	2,400.00	0.15%	―	5.35%	-97.78%
RM	46 Neutral	£95.95M	-66.01	-3.40%	―	-14.23%	97.27%

Idox plc Corporate Events

Idox posts record recurring revenue and order intake as takeover bid advances

Idox reported its seventh consecutive year of revenue and adjusted EBITDA growth for FY25, with revenue up 3% to £89.8m and adjusted EBITDA rising 4% to £27.0m, as recurring revenue grew 10% and a record £108m order intake strengthened visibility into FY26 despite weaker non‑recurring election‑related sales. The group expanded its health and social care footprint with the Plianz acquisition and Ayup asset purchase and continued to invest in its India Global Capability Centre, while net debt rose due to M&A and the board withheld an FY25 dividend amid an ongoing recommended cash takeover offer from Long Path Partners’ vehicle Frankel UK Bidco, which is seeking majority control via a contractual offer running into March 2026.

The most recent analyst rating on (GB:IDOX) stock is a Buy with a £78.00 price target. To see the full list of analyst forecasts on Idox plc stock, see the GB:IDOX Stock Forecast page.

Idox plc Adjourns Meetings for Shareholder Discussions on Acquisition

Idox plc has announced an adjournment of its Court Meeting and General Meeting regarding the recommended cash acquisition by Frankel UK Bidco Limited, a company indirectly owned by Long Path investment funds. The adjournment, intended to allow more time for discussions with shareholders, reschedules the meetings to January 6, 2025, reflecting the company’s commitment to ensuring shareholder engagement and consideration of the acquisition terms.

The most recent analyst rating on (GB:IDOX) stock is a Hold with a £76.00 price target. To see the full list of analyst forecasts on Idox plc stock, see the GB:IDOX Stock Forecast page.

Idox plc Announces Recommended Cash Acquisition by Frankel UK Bidco Limited

Idox plc, a company involved in providing software solutions, has announced a recommended cash acquisition by Frankel UK Bidco Limited, which is indirectly owned by Long Path Co-Investment Fund and its affiliates. The acquisition will be conducted through a court-sanctioned scheme of arrangement, with Idox shareholders being advised to vote in favor of the scheme. The Court Meeting and General Meeting, initially scheduled for December 15, 2025, have been adjourned to January 6, 2026, to allow more time for discussions with shareholders. The Idox directors unanimously recommend the acquisition terms, considering them fair and reasonable, and emphasize the importance of shareholder participation in the voting process.

The most recent analyst rating on (GB:IDOX) stock is a Hold with a £76.00 price target. To see the full list of analyst forecasts on Idox plc stock, see the GB:IDOX Stock Forecast page.