Iress – improving bottom line but no suitors

Mike Taylor

Managing Editor/Publisher, Financial Newswire

26 February 2026

Financial planning software provider Iress has acknowledged that having spent last year waiting for a takeover offer that never fully materialised it has determined to continue going it alone.

But the company’s full-year results announcement made clear that the Board will consider any bona fide proposal that appropriately recognised the value of the Company.

The company reinforced the admission at the same time as releasing its full-year results headlined by a 10.6% decline in Net Profit After Tax (NPAT) to $79.3 million but with green shoots from its business simplification strategy delivering a 16.6% increase in underlying profit after tax of $73.9 million.

The board reinforced its message to shareholders by declaring a final dividend of 13 cents per share fully franked, bringing total dividends for the year to 24 cents per share.

The company’s commentary said the Group saw growth across all business lines through the year with Continuing Business Adjusted EBITDA up 14.9% to $132.6m, reflecting the benefits of a simplified structure, stronger focus and ongoing efficiency initiatives.

It said headline adjusted EBITDA was 2.6% higher at $136.2m, ahead of guidance of $128-$132 million.

But the underlying reality for Iress came with its admission that “over the past year, Iress has engaged constructively with third parties to assess whether a change-of-control transaction could deliver compelling and certain value for shareholders. No such offer has been received”.

It said that, on that basis, the Board has determined that the most attractive path to maximising shareholder value is to focus on the disciplined execution of Iress’ strategy in its global Wealth and Trading & Market Data software businesses”.

“The Board is confident in the Company’s strategy, earnings trajectory and margin expansion opportunity, and remains fully committed to delivering long-term value in the public markets,” the announcement said.

“Consistent with its fiduciary duties, the Board will consider any bona fide proposal that appropriately recognises the value of the Company.”

The Iress announcement said it would continue to focus on delivery of its business efficiency program which is targeting approximately $30 million in annualised cost reductions by the end of FY26.

It said it expected F26 revenue to be in the range of $520 – $528 million, UPAT of $84-90 million with Cash EBITDA of $116–$123 million and an expected FY26 exit run-rate margin of +25%, supported by the progress already achieved in FY26.