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Integrated Research Limited
(Sydney:IRI)
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Rating:66Neutral
Price Target:
AU$0.36
▲(24.83% Upside)
Action:Reiterated
Date:08/28/26
The score reflects material near-term operating weakness (declining revenue and operating losses) as the biggest constraint, partially offset by balance-sheet strength and solid recent cash generation. Technicals are supportive with price above key moving averages, while valuation is a notable positive due to the low P/E and high dividend yield. Earnings-call commentary adds caution given churn, the expected credit loss impact, and higher planned investment that may pressure near-term profitability.
Positive Factors
Debt-free balance sheet and liquidity
A debt-free balance sheet and growing cash reserve provide financial resilience and funding flexibility. This supports continued product investment, reduces refinancing risk, and gives management capacity to execute its growth plan through weaker earnings periods.
Negative Factors
Revenue contraction and product-line churn
Broad revenue declines across important product lines indicate that customer retention and expansion are not yet offsetting lost business. Persistent churn can weaken recurring revenue visibility, reduce operating leverage, and make future growth dependent on successful product migration.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet and liquidity
A debt-free balance sheet and growing cash reserve provide financial resilience and funding flexibility. This supports continued product investment, reduces refinancing risk, and gives management capacity to execute its growth plan through weaker earnings periods.
Read all positive factors
Integrated Research Limited (IRI) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$52.37M
Dividend Yield6.9%
Average Volume (3M)151.87K
Price to Earnings (P/E)43.3
Beta (1Y)0.34
Revenue Growth-15.56%
EPS Growth-91.14%
CountryAU
Employees138
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)<0.01
Shares Outstanding180,591,800
10 Day Avg. Volume297,838
30 Day Avg. Volume151,874
Financial Highlights & Ratios
PEG Ratio-0.44
Price to Book (P/B)0.50
Price to Sales (P/S)0.84
P/FCF Ratio3.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.36Price Target Upside24.14% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.02
Revenue Forecast (FY)AU$65.10M
Integrated Research Limited Business Overview & Revenue Model
Company Description
Integrated Research Limited (IRI.AX), an Australian company founded in North Sydney in 1988, specializes in developing, deploying, and selling computer software for managing critical IT systems. Their solutions address business-critical computing,...
How the Company Makes Money
Integrated Research Limited primarily makes money by licensing its software monitoring products and providing associated services. Its main revenue stream is software revenue, typically generated through recurring subscription/term licenses and/or...
Integrated Research Limited Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Neutral
The call presents a mixed picture: meaningful near-term financial headwinds driven by a large one-off expected credit loss and continued churn in core product lines caused profitability to turn negative and pro forma revenue to decline. Offsetting this, IR has a strong cash position (no debt), improved operating cash flow, important product launches (Iris, Elevate), a significant deployment with a top-10 U.S. bank, and a clear product-led growth roadmap including an IR Labs MVP planned for calendar 2026. Management expects higher investment in H2 to fund growth. Overall, strategic product progress and balance-sheet strength are positives, while earnings, renewals volatility and near-term expense increases are material negatives — yielding a balanced outlook.Positive Updates
Statutory Revenue and Pro Forma Revenue
Statutory revenue for H1 FY26 was $28.3M, slightly down 2% versus PCP. Pro forma revenue (underlying measure smoothing license fees) was $34.4M, down 6% versus PCP with term-based contracts down 4% and services down 2%.
Negative Updates
Large Expected Credit Loss and Impact on Earnings
A $4.8M expected credit loss (principally related to a single reseller client) was recorded in G&A, driving the company to an operating EBITDA loss of $3.1M and a net after-tax loss of $1.5M versus PCP profits of $4.6M for both measures.
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Q2-2026 Updates
Positive
Negative
Statutory Revenue and Pro Forma Revenue
Statutory revenue for H1 FY26 was $28.3M, slightly down 2% versus PCP. Pro forma revenue (underlying measure smoothing license fees) was $34.4M, down 6% versus PCP with term-based contracts down 4% and services down 2%.
Read all positive updates
Company Guidance
Management reiterated that H1 FY26 results were at the upper end of the guidance range issued 14 Nov 2025 and provided clear near‑term guidance around investment and timing: statutory revenue was $28.3m (down 2% PCP) and pro forma revenue $34.4m (down 6% PCP), license fees were up 4%, EBITDA was a loss of $3.1m (vs. EBITDA profit $4.6m PCP), net after‑tax loss $1.5m (vs. $4.6m profit PCP), and an expected credit loss charge of $4.8m materially impacted earnings; operating expenses excluding that charge were $26.5m (down 4%), with product & technology +14% and S&M -9%. They flagged H2 FY26 expense increases to accelerate the product‑led growth program, plan an IR Labs AI MVP in CY‑26 and Iris rollouts to Transact and Infrastructure toward the end of FY26, and expect subscription fees flat or down ~3% PCP; cash of $43.6m (up $3m, +8%), operating cash flow $5.5m (vs. $0.5m PCP), net assets $95.7m (down 5%), no debt and NTA/share $0.53 (down 7%) were cited as funding headroom to execute the plan.Integrated Research Limited Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 57.64M | 68.26M | 83.29M | 69.83M | 62.87M |
| Gross Profit | 26.84M | 68.26M | 83.29M | 28.94M | 62.87M |
| EBITDA | -503.00K | 13.45M | 25.34M | -1.07M | 10.40M |
| Net Income | 1.21M | 13.36M | 27.13M | -29.23M | 1.54M |
Balance Sheet | |||||
| Total Assets | 120.10M | 122.97M | 114.19M | 90.84M | 132.20M |
| Cash, Cash Equivalents and Short-Term Investments | 51.69M | 40.59M | 31.89M | 18.55M | 12.33M |
| Total Debt | 1.52M | 1.85M | 1.72M | 3.05M | 4.87M |
| Total Liabilities | 22.08M | 22.36M | 25.82M | 30.97M | 45.08M |
| Stockholders Equity | 98.02M | 100.62M | 88.36M | 59.87M | 87.11M |
Cash Flow | |||||
| Free Cash Flow | 15.86M | 8.18M | 15.22M | 8.20M | 6.97M |
| Operating Cash Flow | 16.12M | 8.68M | 13.04M | 15.99M | 18.76M |
| Investing Cash Flow | -265.00K | 4.12M | 2.27M | -8.90M | -11.80M |
| Financing Cash Flow | -4.25M | -5.00M | -1.69M | -1.63M | -6.96M |
Integrated Research Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$711.47M | 14.54 | 12.46% | 2.97% | -1.53% | 10.09% | |
71 Outperform | AU$14.84M | 4.73 | 28.96% | ― | 4.70% | 6.82% | |
66 Neutral | AU$52.37M | 43.28 | 1.25% | 6.90% | -15.56% | -91.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | AU$21.69M | -2.67 | -86.45% | ― | -16.88% | 82.25% | |
46 Neutral | AU$6.04M | -0.76 | 168.57% | 0.66% | -15.34% | -12.05% | |
43 Neutral | AU$21.29M | -1.21 | -80.59% | ― | 119.88% | -130.38% |
* Technology Sector Average
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Integrated Research Limited Corporate Events
Integrated Research Corrects Date in Updated Corporate Governance Filing
Aug 27, 2026
Integrated Research Limited has re-released its Appendix 4G and Corporate Governance Statement, correcting the effective date of the governance key to 27 August 2026 from the previously stated 2025. The documents outline how the company complies w...
Integrated Research files updated governance statement and Appendix 4G
Aug 27, 2026
Integrated Research Limited has lodged its Appendix 4G and updated Corporate Governance Statement for the year ended 30 June 2026 with the ASX, confirming compliance with key disclosure requirements. The governance statement, approved by the board...
Integrated Research releases FY26 investor presentation
Aug 27, 2026
Integrated Research has released an investor presentation in conjunction with its financial results for the year ended 30 June 2026, offering the market additional detail on the company’s performance and outlook. The board-approved release u...
Integrated Research Leans on Strong Cash and AI Strategy Amid FY26 Earnings Slide
Aug 27, 2026
Integrated Research reported a 16% drop in statutory revenue to A$57.6 million and an EBITDA loss for FY26, as softer renewals, reduced services income and deferred new business weighed on performance. Net profit after tax fell sharply to A$1.2 mi...
Integrated Research Declares AUD 0.05 Full-Year Dividend
Aug 27, 2026
Integrated Research Limited has declared a full-year dividend of AUD 0.05 per ordinary share for the twelve-month period ended 30 June 2026, reinforcing its capital management approach and providing a cash return to shareholders. The dividend will...
Integrated Research lifts dividends despite steep profit slump
Aug 27, 2026
Integrated Research Limited has reported significantly weaker financial results for the year ended 30 June 2026, with revenue falling 16% to A$57.6 million and net profit dropping 91% to A$1.21 million. Profit before tax slid 96% to A$0.74 million...
Integrated Research sets date for FY26 earnings release and investor webinar
Aug 16, 2026
Integrated Research Limited has announced it will release its full‑year earnings results for the period ended 30 June 2026 on 27 August 2026. The company will host an investor webinar the same day, led by its chief executive and chief financ...
Integrated Research flags weaker FY26 results but touts product-led growth push
Jul 24, 2026
Integrated Research has flagged a weaker financial performance for FY26, with statutory revenue expected to fall about 17 per cent to between A$56 million and A$58 million and pro forma revenue down roughly 13 per cent as new business growth lagge...
Integrated Research Performance Rights Lapse After Vesting Conditions Not Met
Jul 13, 2026
Integrated Research Limited has notified the market that 1,570,139 performance rights, classified as IRIAAA securities, have lapsed as of 30 June 2026 after the conditions attached to these rights were not met or became incapable of being satisfie...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.