Iress Lifted 1H26 Earnings as Cost Efficiencies and Recurring Revenue Strengthened

Highlights

• Continuing-business Cash EBITDA had risen 47.1% to AU$61.1 million in 1H26.
• Iress had delivered AU$31.5 million in annualised efficiencies by 30 June 2026.
• FY26 guidance had been revised for softer revenue growth but stronger Cash EBITDA.

Earnings Quality Improved

Iress Limited (ASX: IRE) reported its 1H26 financial results on 17 August 2026, highlighting stronger profitability, higher recurring revenue and continued progress on its business transformation strategy.

For the continuing business, revenue had increased 2.5% on a constant-currency basis to AU$250.0 million, while recurring revenue had risen 3.4% to AU$237.8 million. Cash EBITDA had advanced 47.1% to AU$61.1 million, with the Cash EBITDA margin expanding by 742 basis points to 24.5%. Underlying earnings per share had reached 20.8 cents.

At the Group headline level, statutory net profit after tax had increased 85% to AU$32.0 million, while underlying profit after tax had risen to AU$38.8 million.

Efficiency Program Strengthened Margins

Iress had delivered AU$31.5 million in annualised savings by the end of June 2026, including reductions across organisational structure, software and IT, general administration and property costs. Management had expected a further AU$6 million to AU$9 million of annualised efficiencies during the second half.

The company had also declared a fully franked interim dividend of 14.0 cents per share, representing a 27.3% increase from the prior corresponding period. Leverage had remained modest at 0.5 times.

Product and AI Strategy Advanced

During the period, Iress had mobilised its Thoughtworks partnership, embedded artificial intelligence across its product and engineering strategy and incorporated AI-enabled capabilities into the Xplan roadmap. Customer engagement and longer-term enterprise partnerships had also progressed.

Outlook

Iress had revised FY26 continuing-business revenue guidance to AU$509 million–AU$515 million, reflecting lower non-recurring revenue. Cash EBITDA guidance had increased to AU$121 million–AU$126 million, while underlying profit after tax guidance had been set at AU$84 million–AU$88 million. The company had remained on track for a 25% Cash EBITDA margin exit run-rate, while prioritising further efficiencies, AI-enabled Xplan tools, faster product delivery and stronger customer relationships in 2H26.

Note- All data presented is based on information available at the time of writing.

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