IPH Limited

Revenue was $363.9 million, up 6.5% year over year. Underlying EBITDA was $107.1 million, up 6.6%, and underlying NPATA was $62.6 million, up 2.6%. Statutory net profit after tax increased 10.5% and statutory basic EPS rose 12.1%; underlying basic EPSA increased 3.9%. Gross operating cash flow to EBITDA conversion was 101%, free cash flow was up 32% for the half, net debt was down 6.5% or $27 million from 30 June 2025, and leverage was 1.8x. The interim dividend was increased 11.8% to $0.19 per share, franked 20%, with a 81% payout ratio of cash adjusted NPAT. Management did not provide formal next-quarter or full-year earnings guidance, but said Canada should benefit when the CIPO backlog unwinds, Asia should keep building on improved filings, and ANZ momentum has improved though no forecast was committed.

Andrew Blattman framed the quarter as evidence that IPH’s scale and geographic diversity are working, especially with nearly 60% of group earnings now outside ANZ. He emphasized the strategy of leading secondary IP markets, highlighted the successful integration of Bereskin & Parr, and pointed to AI, client referrals, and new offices in the Philippines and Kuala Lumpur as part of the growth platform. His tone was upbeat, especially on Canada and Asia, while still acknowledging ANZ’s challenges and saying he has high hopes for a turnaround.

Brendan York focused on the numbers: revenue of $363.9 million, underlying EBITDA of $107.1 million, NPATA of $62.6 million, and cash conversion of 101%. He noted the foreign exchange loss of $0.2 million versus a $1.3 million gain last year, the 0.1 percentage point lift in underlying EBITDA margin, and non-underlying expenses of $2.8 million versus $4.8 million previously. On the balance sheet, receivables fell by $12.1 million, working capital reduced by $5.9 million, CapEx was only $1.5 million, net debt fell $27 million, leverage was 1.8x, and the company refinanced $210 million of debt on improved terms while also announcing a buyback with capacity for 12.2 million shares.

Analysts pressed on whether ANZ could recover in the second half after a better November-December trend, and management said momentum was improving but stopped short of giving a forecast. Questions also focused on U.S. exposure, self-filed AI-generated applications, currency management, Canada’s litigation pipeline, China expansion, and the upcoming roll-off of Smart & Biggar principals in October 2026. Management said it is broadening business development beyond the U.S., using forwards to manage currency, sees a healthy Canadian pipeline, expects China to be an increasing source of work, and does not expect a mass departure of Canadian principals.