Integrated Research Limited

For first half FY26, statutory revenue was $28.3 million, down 2% versus the prior comparable period. Pro forma revenue was $34.4 million, down 6%, with term-based contract revenue down 4% and services revenue down 2%. EBITDA was a loss of $3.1 million and net after-tax loss was $1.5 million, compared with profit of $4.6 million for both measures in the PCP. Cash rose to $43.6 million, net assets were $95.7 million, and the company has no debt. Looking ahead, management said second-half expenses are expected to increase due to accelerated investment in product-led growth; they also said the company’s results were at the upper end of the guidance range issued on November 14, 2025, but no new numerical full-year or next-quarter guidance was given on this call.

Ian Lowe said the quarter reinforced IR’s shift away from dependence on renewals and toward product-led growth, with new products and AI central to the strategy. He highlighted launches of Iris and Elevate, completion of the first High Value Payments deployment, and plans for more AI-based releases in calendar 2026, including an IR Labs product, an expanded Iris rollout, and data layering. His tone was cautious but constructive: he acknowledged the business will take time to transition, but emphasized improving new-client and expansion revenue and said the balance sheet can fund the strategy.

Christian Shaw said the half was broadly consistent operationally with the prior period, but material expected credit losses led to the operating loss and net loss. He cited $28.3 million of statutory revenue, $34.4 million of pro forma revenue, a $3.1 million EBITDA loss, a $1.5 million net loss after tax, cash of $43.6 million, and net assets of $95.7 million. He also noted that operating expenses excluding expected credit losses were down 4% to $26.5 million, product and technology spend rose 14%, sales and marketing fell 9%, G&A was flat, and no debt was outstanding.

Analysts asked about the large credit loss, and management said it came from a single unusual client contract, was not related to software performance, and has now been contained with incremental guardrails to avoid repetition. They also asked about GenAI risk to SaaS businesses; Ian Lowe argued AI will disrupt parts of observability, but IR’s opportunity is to use AI to collect, analyze, and operationalize telemetry and workflows, where he sees limited market capability today. On M&A, he said IR is not committed to a deal but would consider a rightsized opportunity that accelerates product-led growth. He also declined to give more detail on IR Labs ahead of launch, and said the company is prioritizing capital preservation over a share buyback for now.