Company Reports

We recently cut our fair value estimates for EML Payments and GQG Partners after we self-identified a valuation error in our treatment of share-based compensation. We've now reviewed our diversified financials coverage for the same issue and identified 10 affected companies.

Iress is positioned to deliver improved earnings growth through the strategic refocusing on its core business units, which have stronger competitive advantages in Australia. These core businesses consist of a trading and market data product and a wealth management platform. This follows a prolonged expansion into lower-returning noncore and overseas markets, which have eroded the firm’s economic returns.

Iress' first-half fiscal 2026 cash EBITDA (EBITDA less capital expenditures), its preferred profitability measure, grew 47%, excluding divestments. Full-year guidance was updated to reflect slightly lower revenue growth from lower nonrecurring revenue, but higher cash EBITDA growth.

Iress is positioned to deliver improved earnings growth through the strategic refocusing on its core business units, which has stronger competitive advantages in Australia. These core businesses consist of a trading and market data product, a wealth management platform. This follows a prolonged expansion into lower-returning noncore and overseas markets, which have eroded the firm’s economic returns.

Iress shares have fallen roughly 19% since the start of 2026. Growing market concern about artificial intelligence disruption to incumbent financial software firms is weighing on sentiment and valuation multiples across the sector.

Iress is positioned to deliver improved earnings growth through the strategic refocusing on its core business units, which has stronger competitive advantages in Australia. These core businesses consist of a trading and market data product, a wealth management platform. This follows a prolonged expansion into lower-returning noncore and overseas markets, which have eroded the firm’s economic returns.

Iress reported 34% growth in underlying net profit after tax in calendar 2025. Revenue and EBITDA grew 7% and 15%, respectively, with EBITDA margins expanding 2% to 26%. Management guided to EBITDA and NPAT growth of at least 15% in calendar 2026, with modest revenue growth. Shares rose 10%.

Iress is positioned to deliver improved earnings growth through the strategic refocusing on its core business units, which has stronger competitive advantages in Australia. These core businesses consist of a trading and market data product, a wealth management platform. This follows a prolonged expansion into lower-returning noncore and overseas markets, which have eroded the firm’s economic returns.

Iress announced plans to increase operating margins through additional cost reductions. The company is targeting cash EBITDA (EBITDA less capital expenditure) margins of around 25% by the end of 2026, up from its own expected margin of around 19% in 2025.

Iress is positioned to deliver improved earnings growth through the strategic refocusing on its core business units, which has stronger competitive advantages in Australia. These core businesses consist of a trading and market data product, a wealth management platform. This follows a prolonged expansion into lower-returning noncore and overseas markets, which have eroded the firm’s economic returns.

Iress is positioned to deliver improved earnings growth through the strategic refocusing on its core business units, which has stronger competitive advantages in Australia. These core businesses consist of a trading and market data product, a wealth management platform. This follows a prolonged expansion into lower-returning noncore and overseas markets, which have eroded the firm’s economic returns.

Iress' underlying EPS for first half 2025 increased 19% on last year. The firm reiterated 2025 full-year guidance and expects future revenue growth and profit margins to increase. Still, shares declined 6% on the day.

At its AGM, Iress reaffirmed its 2025 earnings guidance, targeting adjusted EBITDA of AUD 127 million–AUD 135 million and underlying net profit after tax of between AUD 65 million–AUD 73 million, a 6%–12% and 3%–15% increase from 2024, respectively.

Iress is positioned to deliver improved earnings growth through the strategic refocusing on its core business units in the Asia-Pacific, mainly in Australia. The core business consists of a trading and market data product, a wealth management platform and a superannuation administration system. This follows a prolonged expansion into lower-returning noncore and overseas markets, which have eroded the firm’s economic returns.

Iress is positioned to deliver improved earnings growth through the strategic refocusing on its core business units in the Asia-Pacific, mainly in Australia. The core business consists of a trading and market data product, a wealth management platform and a superannuation administration system. This follows a prolonged expansion into lower-returning noncore and overseas markets, which have eroded the firm’s economic returns.

Iress' underlying net profit after tax for 2024 improved materially to AUD 63 million from AUD 36 million in 2023, mostly from lower costs. The firm guided to 6%-12% growth in underlying EBITDA for 2025, and capital expenditure of 5%-7% of revenue over the medium term.

Iress is positioned to deliver improved earnings growth through the strategic refocusing on its core business units in the Asia-Pacific, mainly in Australia. The core business consists of a trading and market data product, a wealth management platform and a superannuation administration system. This follows a prolonged expansion into lower-returning noncore and overseas markets, which have eroded the firm’s economic returns.

Iress shares have declined by around 12% since the half-year 2024 update in August and have underperformed the S&P/ASX 200 index on a total return basis, calendar year-to-date.

Iress is positioned to deliver improved earnings growth through the strategic refocusing on its core business units in the Asia-Pacific, mainly in Australia. The core business consists of a trading and market data product, a wealth management platform and a superannuation administration system. This follows a prolonged expansion into lower-returning noncore and overseas markets, which have eroded the firm’s economic returns.

Narrow-moat Iress’ first-half 2024 results exceeded expectations, with stronger revenue growth and cost reductions driving improved earnings and margins. This, combined with an upgraded earnings outlook, demonstrates Iress’ ability to still deliver revenue growth amid aggressive cost-outs, surpassing our prior rather conservative projections. We lift our fair value estimate to AUD 10.00 per share from AUD 9.60, reflecting slightly improved revenue growth assumptions, particularly from offshore businesses.