Iomart Group plc (IOM) AI Stock Analysis

• Market Cap: £21.34M
• Dividend Yield: 23.79%
• Average Volume (3M): 474.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: 25.44%
• EPS Growth: -1877.56%
• Country: UK
• Employees: 650
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.02
• Shares Outstanding: 113,515,520
• 10 Day Avg. Volume: 510,043
• 30 Day Avg. Volume: 474,623
• PEG Ratio: <0.01
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 2.47
• 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: 48 Neutral
• Price Target: 18.50p ▲(4.82% Upside)

The score is primarily weighed down by weak financial performance: a sharp swing to losses, higher leverage, and declining free cash flow. Technicals are mixed (short-term support but negative MACD and price below the 200-day average). Valuation is also mixed, with a negative P/E (loss-making) partially offset by a very high dividend yield that may signal higher risk.

Positive Factors

Sustained Revenue Growth

Double-digit revenue growth in 2025 shows persistent demand for cloud and managed services, supporting scale and long-term client relationships. Sustained top-line expansion improves prospects for cross-sell, margin recovery, and amortizing fixed costs over a larger revenue base.

Recurring subscription business model

A subscription and usage pricing model with long-term contracts produces predictable recurring cash flows and higher customer lifetime value. This structural model supports retention, systematic upsell, and resilience through cyclical demand swings, aiding medium-term planning.

Positive free cash flow coverage vs net loss

Despite accounting losses, positive free-cash-flow-to-net-income indicates operations still generate cash relative to reported losses. That durable cash generation provides a buffer to fund operations, service debt or invest selectively while management addresses profitability.

Negative Factors

Sharp decline in profitability

A swing to deeply negative margins and negative operating profits signals structural margin pressure—higher costs or pricing compression. Persistent negative EBIT/EBITDA undermines self-funding capacity for growth and raises the need for sustainable cost or pricing remediation.

Material increase in financial leverage

A large rise in debt-to-equity materially increases fixed obligations and refinancing risk. With weakened profitability and cash flow, higher leverage reduces financial flexibility, limits investments, and heightens vulnerability to interest-rate or covenant pressures over the medium term.

Declining free cash flow generation

A 35% decline in free cash flow curtails the company's ability to invest, pay down debt, or sustain payouts. Combined with negative profitability, the deterioration increases reliance on external funding and raises liquidity risk unless operational cash conversion improves.

Iomart Group plc Business Overview & Revenue Model

Company Description

iomart Group plc provides managed cloud services in the United Kingdom and internationally. It operates in two segments, Cloud Services and Easyspace. The company offers a range of shared hosting and domain registration services to micro and SME companies, as well as managed cloud computing facilities and services. It also provides hybrid cloud solutions, such as private and public cloud, on-premises, and colocation; data management solutions, including data protection and disaster recovery; and connectivity solutions comprising managed wide area network (WAN), managed SD WAN, managed cloud firewall, and managed software defined perimeter. In addition, the company offers security solutions that consist of security monitoring, threat hunting, endpoint detection and response, external vulnerability scanning, threat intelligence, and cyber security incident response solutions. iomart Group Plc was founded in 1998 and is headquartered in Glasgow, the United Kingdom.

How the Company Makes Money

Iomart generates revenue primarily through the sale of its cloud services and managed hosting solutions. The company's revenue model is based on a subscription and usage-based pricing structure, allowing customers to pay for services according to their specific needs and consumption levels. Key revenue streams include recurring monthly fees from long-term contracts with clients, as well as one-time charges for setup or additional services. Iomart also benefits from partnerships with technology providers and telecommunications companies, which help to enhance its service offerings and extend its market reach. The company focuses on customer retention and upselling additional services to existing clients, contributing to a stable revenue base.

Iomart Group plc Financial Statement Overview

Summary

Revenue grew 12.99% in 2025, but profitability deteriorated sharply (net margin fell from 5.07% to -38.42%) with EBIT/EBITDA margins turning negative. Leverage increased materially (debt-to-equity rose from 0.47 to 1.81) and cash generation weakened (free cash flow growth -35.10%), raising financial risk despite some positive free-cash-flow-to-net-income coverage.

Income Statement

The income statement shows a concerning decline in profitability. The company experienced a significant drop in net profit margin from 5.07% in 2024 to -38.42% in 2025, indicating a shift from profit to loss. The EBIT and EBITDA margins also turned negative, reflecting operational challenges. Despite a revenue growth rate of 12.99% in 2025, the negative margins overshadow this growth, suggesting inefficiencies or increased costs.

Balance Sheet

The balance sheet reveals increased financial leverage, with the debt-to-equity ratio rising from 0.47 in 2024 to 1.81 in 2025. This indicates higher reliance on debt financing, which could pose risks if not managed properly. The return on equity turned negative, reflecting the net losses. The equity ratio decreased, suggesting a reduced buffer for absorbing financial shocks.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -35.10% in 2025, indicating potential liquidity issues. The operating cash flow to net income ratio decreased, reflecting reduced cash generation efficiency. However, the free cash flow to net income ratio remains positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	159.25M	143.46M	127.05M	115.64M	103.02M	111.88M
Gross Profit	45.00M	70.46M	69.58M	63.56M	61.31M	67.64M
EBITDA	-24.47M	-20.24M	35.80M	33.72M	37.21M	39.72M
Net Income	-60.57M	-55.12M	6.44M	7.00M	9.40M	10.20M
Balance Sheet
Total Assets	241.70M	254.69M	230.87M	218.68M	208.34M	228.48M
Cash, Cash Equivalents and Short-Term Investments	5.09M	13.09M	15.76M	13.82M	15.33M	23.04M
Total Debt	114.73M	115.01M	58.09M	53.58M	56.62M	77.66M
Total Liabilities	183.30M	191.16M	107.47M	98.12M	89.45M	111.91M
Stockholders Equity	58.40M	63.53M	123.40M	120.56M	118.89M	116.57M
Cash Flow
Free Cash Flow	8.79M	14.10M	24.13M	23.04M	24.52M	23.00M
Operating Cash Flow	16.62M	25.35M	35.94M	33.89M	35.46M	40.06M
Investing Cash Flow	-58.85M	-62.21M	-21.69M	-21.16M	-10.23M	-19.15M
Financing Cash Flow	-19.90M	34.20M	-12.31M	-14.24M	-32.93M	-13.36M

Iomart Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.65
• 50DMA: Negative
• 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 GB:IOM, the sentiment is Negative. The current price of 17.65 is below the 20-day moving average (MA) of 18.10, below the 50-day MA of 19.46, and below the 200-day MA of 23.41, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 34.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:IOM.

Iomart Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYIT	76 Outperform	£794.59M	15.19	68.93%	5.54%	7.83%	2.36%
CNS	64 Neutral	£61.46M	-48.00	-9.83%	―	-5.43%	-292.31%
BKS	64 Neutral	£161.99M	53.85	7.35%	―	26.09%	32.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYS	51 Neutral	£12.97M	-6.05	-9.20%	―	-7.45%	78.23%
IOM	48 Neutral	£21.34M	-0.35	-67.57%	23.79%	25.44%	-1877.56%
CLCO	41 Neutral	£1.06M	―	―	―	―	―

Iomart Group plc Corporate Events

Iomart Group Appoints New Auditor Grant Thornton

Iomart Group plc has announced the appointment of Grant Thornton UK LLP as its new auditor following a competitive tender process, effective from December 1, 2025, for the year ending March 31, 2026. This change comes after Deloitte LLP, the previous auditors for six years, resigned at the Board’s request. The new appointment is subject to shareholder approval at the 2026 Annual General Meeting, and the transition reflects Iomart’s commitment to maintaining robust financial oversight.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £21.50 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Group Announces Total Voting Rights and Share Capital Update

Iomart Group plc has announced its total voting rights and share capital as of November 30, 2025, in compliance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. The company reported a total of 113,515,516 voting rights, which shareholders can use to determine their notification requirements under the relevant rules. This announcement ensures transparency and aids stakeholders in understanding their shareholding obligations.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £24.50 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Group Reports Revenue Growth Amid Strategic Realignment

Iomart Group plc reported a 25% increase in revenue to £77.7 million for the first half of FY26, driven by the acquisition of Atech, despite a decline in organic revenue due to customer churn. The company is undergoing a strategic realignment to enhance operational efficiency and expand its capabilities in high-growth areas like managed security, with a focus on cost optimization and strengthening its core business units.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £24.50 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.

Iomart Group to Announce Interim Results for 2025

Iomart Group plc is set to announce its interim results for the six months ending 30 September 2025, on 26 November 2025. The announcement highlights the company’s ongoing commitment to providing secure cloud services and its strategic positioning in the UK market, which could have implications for its stakeholders and market presence.

The most recent analyst rating on (GB:IOM) stock is a Hold with a £24.50 price target. To see the full list of analyst forecasts on Iomart Group plc stock, see the GB:IOM Stock Forecast page.