Integrated Research flags FY26 revenue decline but lifts cash 27% to $51.7m
Integrated Research (ASX: IRI) has released an unaudited FY26 trading update, revealing softer revenue alongside a materially stronger cash position for the year ended 30 June 2026.
The company, a global provider of observability for business-critical IT ecosystems, guided FY26 revenue to $56–58m, down roughly 17% at the midpoint from FY25’s $68.3m. Cash climbed 27% to $51.7m, providing a strong base to fund its product-led growth strategy.
All figures in the update, released on 24 July 2026, remain subject to audit, with full detail to follow at the company’s full-year results.
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FY26 results snapshot
The headline financials, presented below, combine unaudited FY26 guidance ranges with FY25 actuals. Both Revenue and Pro forma Revenue are guidance ranges pending audit.
| Metric (A$’m) | FY26 (unaudited guidance) | FY25 (actual) | % Change (midpoint vs FY25) |
|---|---|---|---|
| Revenue | $56–58m | $68.3m | (17%) |
| Pro forma Revenue | $64–66m | $74.3m | (13%) |
| EBITDA | ($2.0)–($4.0)m | $15.9m | NM |
| Cash | $51.7m | $40.6m | Up 27% |
The EBITDA year-on-year change is reported as NM (Not meaningful). Management attributed the performance to several drivers:
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A softer renewals book, the value of which fluctuates year on year
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A first-half new business uplift that was not maintained in the second half
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Multiple new business opportunities deferred into 1H FY27
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Statutory earnings impacted by higher expected credit losses and foreign exchange losses
What “product-led growth” and “observability” mean for investors
Understanding two terms helps clarify the update. Observability refers to real-time monitoring and intelligence across complex, multi-vendor IT environments, spanning infrastructure, unified communications and customer experience (UC&CX), and payments. IR delivers this through its Prognosis platform.
Product-led growth is the company’s primary strategy to achieve sustainable new business revenue growth over the medium term.
The core challenge is straightforward: new business revenue must exceed revenue churn for the company to grow. In FY26, the rate of new business growth trailed churn, which weighed on Pro forma Revenue.
This is why cash strength matters. A robust balance sheet funds the medium-term pivot toward product-led growth, giving the company runway to execute despite a challenging year.
Why the strong cash position matters
The standout positive in the update is the $51.7m cash balance, up 27% from $40.6m a year earlier. The company described this as robust cash generation, providing strong foundations to build further product innovation momentum and continue executing its product-led growth strategy.
The balance sheet strength must be weighed against a genuinely difficult financial year. Both Revenue and Pro forma Revenue declined, and EBITDA guidance sits in a negative range of ($2.0)–($4.0)m, down from $15.9m in FY25. One modest positive: EBITDA modestly improved in the second half.
CEO and Managing Director Ian Lowe
“FY26 was a pivotal year as IR advanced its product-led growth execution, strengthening innovation, product delivery and client engagement despite challenging financial performance. With AI driving more cautious technology investment decisions, accelerating monetisation of new products and expanding client-led innovation are key priorities for FY27. IR’s position as a trusted partner to leading global organisations provides a strong platform from which to build further momentum.”
The road to FY27
Management set out clear priorities for the year ahead, anchored to its product-led growth strategy:
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Accelerating the monetisation of new products
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Expanding client-led innovation
The company flagged a cautious macro backdrop, noting that AI is driving more measured technology investment decisions among clients. IR pointed to its position as a trusted partner to leading global organisations, established over more than 30 years, as a platform from which to build further momentum.
Full detail on the FY26 numbers will accompany the company’s audited full-year results, where investors can assess how execution against these FY27 priorities is progressing.
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