The ASX-listed financial software provider is targeting a sustainable cash EBITDA margin of around 25 per cent by the end of FY26 – up from an expected 19 per cent in FY25 – as it sharpens its focus on core platforms, technology investment, and client engagement.
The company also reaffirmed and tightened its FY25 earnings guidance, signalling confidence in its performance outlook.
In an announcement released to the ASX, the company said after successfully divesting six non-core businesses over the past two years, Iress has bolstered its balance sheet and reshaped itself into a more focused, streamlined organisation, concentrating on its two core global enterprise software units: Wealth and Trading & Market Data.
“Looking ahead, Iress is now executing a FY26 business efficiency program designed to further enhance operating leverage, strengthen profitability and re-energise the business for growth through a sharper focus on product, technology and client engagement,” it said.
The program accelerates and broadens Iress’ stranded cost-reduction initiative to deliver enduring structural efficiencies across the group.
“The targeted cash EBITDA margin of ~25 per cent reflects the company’s investment in strengthening core platforms and building new revenue channels for growth, including AI-enabled capabilities and enhanced client solutions,” Iress added.
The firm’s product, technology and capital management priorities are being closely aligned to reinforce client outcomes, improve execution and deliver on the company’s cash EBITDA margin and shareholder return objectives.
Iress has reaffirmed its FY25 guidance, expecting adjusted EBITDA to be between $128 million and $132 million (previously $127 million to $135 million) and underlying profit after tax to range from $67 million to $71 million (previously $65 million to $73 million).
It was announced on 8 August that it was in the early stages of discussions with US alternative asset manager Blackstone and software private equity firm Thoma Bravo regarding a possible acquisition.
It had previously received an offer of $10.50 cash per share from Blackstone, but this was subsequently withdrawn.
Some 10 days later, Iress said it was still in “early stages of all discussions and interest” to explore whether a change of control proposal for the company was viable to be recommended to the board, although no parties were named.
But in a subsequent update on 17 October, it said in an ASX statement that it was “engaging with new third parties” in addition to the parties that had already expressed interest.
In the announcement on Monday, Iress said it remains in discussions with multiple parties to explore potential strategic proposals that could be recommended by its board.
Meanwhile, the company’s new managing director and CEO, Andrew Russell, is set to begin his role on Monday, 17 November 2025.
