Announcement PDF Integrated Research Ltd > ABN 76 003 588 449 Suite 9.03, Level 9, 420 George Street, Sydney NSW 2000 Australia t: +61 (2) 9966 1066 e: InfoAP@ir.com Market Announcement Investor Presentation Sydney, 26 August 2025 – Further to Integrated Research Limited’s (Company, IR) (ASX:IRI) announcement to the market today on its results for the year ended 30 June 2025, please find attached the presentation to be delivered this morning. Authorised for release by the Board of Integrated Research Limited. Leanne Ralph Company Secretary Integrated Research Limited ABN 76 003 588 449 About Integrated Research Limited (ASX: IRI). Integrated Research (IR) is the leading global provider of user experience and performance management solutions for payment transactions and collaborative systems. We create value through our realtime, scalable & extensible hybrid cloud platform and our deep domain knowledge to optimise operations of missioncritical systems and improve user experience through intelligent and actionable insights. We enable many of the world’s largest organisations to simplify complexity and provide visibility over systems that millions of people can’t live without – systems that allow them to transact and collaborate. For further information on IR, visit www.ir.com. 1 www.ir.com Integrated Research Limited (ASX:IRI) FY2025 Full-Year Financial Results 26 August 2025 Ian Lowe, CEO Christian Shaw, CFO 1 With IR you can… Discover better Deeper insight. Better experiences. Unlimited discovery. Powered by Prognosis We go deep into data to discover new AI-powered insights to optimize performance of businesscritical technology, accelerate time to remediation and deliver exceptional technology experiences. Monitor Reduce performance in real time downtime and outages Optimize Turn high fidelity, big data into business-critical tech n olo gy Accelerate time to remediation AI-Powered Discovery Improve User Experience 2 Trusted by the world's leading organisations Tech | Telco BFSI Health | Gov | Edu Retail |Industrial | Other 3/10 top telcos 5/10 top USA banks 4/25 Fortune 500 top companies 4/20 largest Australian companies (market cap) 3 Where we have come from… • Historical revenue performance has been overly reliant on contract renewals, the value of which fluctuates each year. • Revenue from new clients and expansion of existing client contracts has been inconsistent and insufficient to offset fluctuations in renewals book and the impact of churn. • Under investment in new products in recent years has compounded reliance on renewals and constrained new business growth. 4 IR has reset its strategy to focus on product-led growth • Significant investment of available capital and future cashflow to develop and commercialise new products. • New products are focused on building new revenue opportunities with: • new clients in existing markets and/or new markets • expansion of existing clients • Investment in product-led growth is: • designed to position the company for sustainable growth over the medium to long term • expected to reduce profits over the short to medium term 5 Product-led growth underway • August 2024: product-led growth strategy announced. • October 2024: new CEO commenced. • Over the last 8 months the Company has released multiple new products, highlights include: • High Value Payments (released December 2024) – reduces compliance, liquidity and commercial risk associated with high value payments for banks. Top 10 US bank signed. • Prognosis Elevate (released July 2025) – Prognosis hosted by IR. Removes activation and maintenance complexity for clients, reduces client cost of ownership. • Iris (beta released July 2025) – first release of the Company’s new AI product: a natural language query interface, provides clients with greater insights, powered by AI. • IR Labs – completed idea validation and prototyping a new, AI powered stand-alone product offering. 6 Observations Opportunities • IT ecosystems inside enterprise grade organisations are more complicated, the need for observability is expanding, not contracting. • AI and machine learning (ML) is an innovation and value accelerator. • First order benefits of AI and ML are unlocked with high fidelity data: Prognosis harvests market leading data. • Company DNA: observability pioneer with deep expertise, 30 years experience. • Blue chip, global client base. Challenges • Duration of client contracts for Collaborate likely to continue to reduce in line with clients reducing forward contract commitments across their vendor mix. • Enterprise grade organisations pursuing cost efficiencies. • New client revenue + expansion revenue is not yet sufficient to offset persistent churn. • FY26 renewals are softer than FY25. 7 Financials FY25 Key Financial Metrics Pro forma Revenue Statutory Revenue Dividend $74.3m $68.3m 2.00 cps Down 1% on FY24 Down 18% on FY24 Steady underlying performance Unchanged from FY24 Fully franked EBITDA NPAT Net Cash $15.9m $13.4m $40.6m Down 35% on FY24 Down 51% on FY24 Up 27% on FY24 Effective tax rate increase *Refer Glossary within the Appendix for definitions and reconciliation of Proforma revenue to Statutory numbers Robust capital position 9 Pro Forma Revenue A$M 74.8 74.3 8.0 6.8 66.8 67.5 FY25 Pro forma Revenue: $74.3m (-1%) • Pro forma revenue apportions upfront licence fee revenue evenly over the life of the contract and is indicative of the underlying performance of the business. • Pro forma revenue remained steady at $74.3m or 1% lower versus PCP. Modest increase in subscription revenues offset by a reduction in non-recurring services revenue. • 91% is secured via term-based contracts. • Currency movement of +$1m or +1%. FY24 Term Based FY25 Other • IR is targeting sustainable growth in Pro forma revenue over the medium term, supported by its product-led growth strategy. *Refer Glossary within the Appendix for definitions and further information on pro forma subscript io n revenue, including a re conciliation o f stat uto ry to pro forma revenue 10 Pro Forma Revenue - by territory New business growth in Americas and APAC Americas APAC Europe $7.9m $14.8m $51.6m • Americas up 3% vs PCP. • APAC down 6% up vs PCP. • Europe down 10% vs PCP. • New business sales including key win with anchor client in Transact. • New business sales including key win with MSP in Collaborate offset by Collaborate churn. • Go-to-market refresh in progress. *Refer the Appendix for related information and reconciliation of Pro forma revenue t o Statut ory numbers 11 Pro Forma Revenue - by product Collaborate Transact Infrastructure $19.9m $31.3m $16.3m • Collaborate down 10% vs PCP. • Transact growth up 29% vs PCP. • Infrastructure growth up 3% vs PCP. • New business and upsell more than offset by downsize and churn. • New business and upsell. • Largely driven by upsell. * Pro forma Rev enue by product excludes services * Refer the Appendix for related informat io n and reconciliat io n of Proforma revenue to Statutory numbers 12 Statutory Revenue Statutory revenue impacted by cyclical renewals book A$M FY25 Statutory Revenue: $68.3m (-18%) 83.3 7.7 2.2 14.3 68.3 6.6 3.9 13.2 59.1 44.6 FY24 FY25 Licence fees Maintenance Subscription fees Services • Under statutory revenue: • the licence component of a contract is recognised up-front, and can be lumpy, rather than over the life of the contract • subscription fees and maintenance revenue are recognised over the life of the contract • services are recognised as and when performed • The decrease in statutory revenue reflects: • a softer FY25 renewal book (versus FY24) • new client contracts expected to close in 2H of FY25 delayed into FY26 due to market uncertainty, particularly in the Americas • Statutory revenue trends with Total Contract Value (TCV), which will now be reported in appendices. 13 Statutory EBITDA Operating profit, assisted by strong cost management and other gains FY25 EBITDA: $15.9m (-35%) In A$M FY25 FY24 Change % Total revenue 68.3 83.3 (18%) • EBITDA performance stronger in 2H FY25 yet down against the prior year due to softer renewals book. Total operating expenses (54.4) (57.8) 6% • Margin decline reflects fixed cost base business, and timing delays on new business sales. Other gains and (losses) 2.1 (0.9) EBITDA 15.9 24.6 (35%) Margin 23% 30% -7ppts (excluding Depreciation & Amortisation) • EBITDA benefited during the period from: • Cost management, operating expenses reduction of $3.4m or 6% • $2.1m non-operating gains (FX and gain on sale of non-core Testing solutions business) • There was no capitalisation of investments during the period. • IR Labs in research and prototyping phase, new product development activity and investment increasing towards the end of FY25 and will continue into FY26. *Refer Glossary within the Appendix for definitions and related info rmation in the ‘Operating Costs’ slide 14 Robust Balance Sheet & Cash Generation Period Ended Jun25 Jun24 A$M A$M Cash & equivalents 40.6 31.9 27% Trade & other receivables 73.7 73.5 - All other assets 8.7 8.8 (1%) 123.0 114.2 8% Trade & other liabilities 5.7 6.1 (7%) Deferred revenue 11.5 13.9 (17%) All other liabilities 5.2 5.8 (10%) Total assets YoY Total liabilities 22.4 25.8 (13%) Net assets 100.6 88.4 14% Net Tangible Assets per share (cps) 56.7 50.6 12% FY25 NET ASSETS: $100.6m (+14%) FY25 NET CASH: $40.6m (+27%) • Strong balance sheet with cash of $40.6m and no debt • Trade receivables consistent at $73.7m • NTA (Net Tangible Assets) of 56.7 cents per share • Cash flow from operations of $8.7m • Increased income tax payments reflect reduced R&D credits 66.7 1.1 31.9 (53.5) 2.9 Net cash Cash receipts Cash paid to Non-recurring Income tax 30 June 24 from suppliers and customers employees 0.9 (1.5) (4.4) Interest re ceived Payment of lease 40.6 (3.5) Payment of Exchage rate dividend change Net cash 30 June 25 15 Licence Fee Growth Metrics New Client Revenue Expansion Revenue Subscription Fees $6.7m $3.3m $3.9m Up 31% on FY24 Down 51% on FY24 Up 77% on FY24 Licence fee revenue from new clients Early stages of releasing new products Consumption based revenue • Product-led growth strategy is focused on new revenue opportunities with: • new clients (new client revenue) • expansion of existing clients (expansion revenue) • Subscription revenue is consumption-based revenue, where clients pay a variable fee based on level of usage: • consumption-based revenue is valued for its potential to contribute organic growth over time • the Company plans to commercialise select new products under a consumption-based revenue model *Refer Glossary within the Appendix for definitions 16 Capital Management FY26 Capital Allocation Framework Investing for Product-Led Growth Capital Allocation • • • Product-led growth investment in FY25 was foundational: key talent secured, development platform established, early-stage progress via new product releases - modest deployment of capital. Product-led growth investment in FY26 will substantially increase: with the foundations in place acceleration is a critical focus. Dividend policy – pay a minimum dividend of 25% of free cash flow annually. Objectives • • • New, differentiated products and capabilities focused on establishing new revenue streams. Secure new clients and expand existing client accounts. Selectively introduce consumption-based pricing to lift organic revenue growth over time. Principles • • • ROI driven investment lens, milestone-based approach. Align to medium and long-term value creation. Preserve minimum capital contingency and maintain strong liquidity. 18 Key Take-Aways Where we have come from… • Historical revenue performance has been inconsistent and reflects the fluctuating value of annual renewals book. • Revenue from new clients and expansion revenue has been insufficient to absorb fluctuations in renewals book and the impact of churn. • Under investment in new products in recent years has compounded reliance on renewals and constrained new business growth. 20 Investing for product-led growth • Capital position now provides for significant FY26 investment to accelerate development and commercialisation of new products: IR’s growth strategy is product-led. • Investment in product-led growth is: • designed to position the company for sustainable growth over the medium to long term • expected to reduce profits over the short to medium term • Foundational work completed in FY25 and early progress: • High Value Payments (released December 2024) – Top 10 US bank signed • Prognosis Elevate (released July 2025) – Prognosis hosted by IR • Iris (beta released July 2025) – first release of the Company’s new AI product • IR Labs – completed prototyping of a new, AI powered stand-alone product offering 21 Investing for product-led growth means… • The company is positioning for sustainable growth over the medium to long term. • Investment of capital and future profits will be disciplined; milestone-based, ROI led approach. • Profit performance will dampen over the short to medium term - softer FY26 renewals book, investment in new products. 22 Appendix Total Contract Value (TCV) Softer FY25 renewals book 83.9 FY25 TCV: $67.3m (-20%) A$M 7.6 67.3 15.3 4.9 13.8 • TCV is the total value of client contracts secured in any given period. • FY25 TCV softer driven by 20% decline in renewals book. • New business at $13.8m down 10% vs prior corresponding period (PCP). 61.0 48.6 FY24 Renewal FY25 New business *Refer Glossary within the Appendix for definitions • New business anticipated to close in 2H of FY25 delayed into FY26 due to market uncertainty, particularly in the Americas. • Average contract term increased to 3.4 years from 3.1 years vs PCP (all products in aggregate). Services 24 EBITDA Cash Flow Bridge- A$M Timing differences, and taxes reduced net operating cash flow 5.6 21.5 15.9 (2.1) 1.6 EBITDA - statutory Over-time revenue conversion Pro forma E BITDA Non OCF Working capital/Other changes 8.7 (0.3) (7.6) (4.4) Share-based payments expense Other Income taxes paid Net cash fro m ope rations • FY25 Pro forma EBITDA exceeded statutory EBITDA by $5.6m, reflecting pro forma revenue differential, with minor cost adjustments. • Non-operating cash gains relate to the sale of non-core Testing business and currency exchange, refer to “Other gains/ (losses)” as per the Consolidated statement of comprehensive income. * Over-time rev enue conv ersion deducts “upfront” licence fees and adds back the (“o ver-time”) amortised licence compo nent that relates to the reporting period. Commission co sts associated with t his t iming difference are also adjust ed to ensure revenues and expenses are matched to the correct repo rt ing period. 25 Operating Costs – A$M Disciplined cost management continues - total costs down 5%1 Product and Technology Total expenditure 58.0 • FY24 to FY25 product and technology expense uplift reflects early stage of advancing product-led growth. 54.9 5% FY24 FY25 General and Administration 12.8 13.5 FY24 FY25 1 7.3 FY24 FY25 • General and administration costs includes one-time restructure costs. 34.1 12% 12% FY24 Rounded numbers may produce minor differences in movement percentages to the FY25 Financial Report • No capitalisation during period. • Sales & marketing spend reflects lower headcount and variable cost versus prior period. Sales and Marketing 38.7 6.5 5% • Depreciation & amortisation of $0.4m is included in operating costs. FY25 26 Full year pro forma recurring revenue Reconciliation of statutory to pro forma revenue 2022 2023 2024 2025 A$M A$M A$M A$M Infrastructure 17.8 18.6 19.2 19.9 -2% 4% 4% 3% Transact 10.9 11.5 12.7 16.3 10% 5% 11% 29% Collaborate 39.6 38.3 34.9 31.3 -4% -3% -9% -10% Proforma subscription revenue 68.4 68.3 66.8 67.5 -2% 0% -2% 1% Perpetual sales 0.6 0.3 0.3 0.3 -53% -48% -7% -6% Testing Services 3.8 3.3 3.1 2.7 -11% -13% -7% -12% Professional Services 7.1 3.7 4.6 3.8 -16% -48% 25% -17% Proforma revenue 79.8 75.6 74.8 74.3 -4% -5% -1% -1% Statutory revenue 62.9 69.8 83.3 68.3 -20% 11% 19% -18% Proforma revenue 79.8 75.6 74.8 74.3 Deduct Amortised licence fees (51.9) (51.1) (50.4) (50.3) Add term licence fees recognised upfront (excl perpetual licences) 34.9 45.3 58.9 44.3 Statutory revenue 62.9 69.8 83.3 68.3 Full Year Revenue 2022 %chg 2023 %chg 2024 %chg 2025 %chg Reconciliation to Statutory Accounts: 27 Reconciliation of Revenue and Pro forma Revenue, and Net Profit After Tax (NPAT) to EBITDA and Pro forma EBITD A$M 2025 2024 Revenue 68.3 83.3 Term licence fees recognised upfront (44.3) (58.9) Amortised licence fees 50.3 50.4 Pro forma revenue 74.3 74.8 Net Profit after Tax (NPAT) 13.3 27.1 Income tax expense 5.1 (0.4) (2.9) (2.2) Depreciation and amortisation 0.4 0.1 EBITDA 2 15.9 24.6 Cost deferral related to over-time revenue (0.5) 0.6 Over-time revenue conversion 6.1 (8.5) Pro forma EBITDA 3 21.5 16.7 1 Finance income 1 Pro forma revenue provides a non-statutory alternate view of underlying performance by restating term licence fee revenue to be on a recurring subscription basis (i.e., overt time), rather than upfront at the commencement of a contract, per the statutory view. Other recurring revenues such as maintenance fees and cloud services, as well as other nonrecurring revenue streams such as perpetual licence fees, professional services and one-time testing services are consistently treated, as part of pro forma and statutory revenue views. 2 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) is a non-IFRS measure used to evaluate the Company's operating performance by focusing on profit from core operations and excluding the effects of capital structure, tax rates, and non-cash accounting items like depreciation and amortisation. 3 Pro forma EBITDA provides a non-statutory alternate view of the underlying operating performance of the Company by using pro forma revenue instead of statutory revenue and then deducting operating expenses after adjusting commission costs for timing differences, to ensure revenues and expenses are matched to the correct periods. 28 Glossary EBI TDA EBI TDA (Earnings Before Int erest, Taxes, Depreciation and Amortisation) is a non-IFRS measure used to evaluat e the Company's operating performance by focusing on profit from core operations and excluding the effects of capital struct ure, t ax rates, and non-cash accounting items like depreciation and amo rt isat io n Pro forma Revenue prov ides a non-statutory alternate view o f underlying performance by restating t erm licence fee rev enue to be on a recurring subscription basis (i.e., overt time), rather than upfront at t he commencement of a cont ract, per the statutory view. Other recurring revenues such as maintenance fees and cloud services, as well as o ther non-recurring revenue streams such as perpetual licence fees, professional serv ices and one-time test ing services are consistently treated, as part o f pro forma and statutory revenue views Proforma Revenue illustrative example Licence Contract Value 500 Contract Term = 5 Years Revenue Recognition Statutory revenue Proforma revenue Year 1 500 100 Year 2 100 Year 3 100 Year 4 100 Year 5 100 Total 500 500 Pro forma EBI TDA prov ides a non-statutory alternate view o f the underlying operating performance of t he Company by using pro fo rma revenue instead of statutory revenue and t hen deducting operating expenses after adjusting commission costs for timing differences, to ensure rev enues and expenses are matched to the correct periods Net Rev enue Retention (NRR) equals recurring revenue g enerat ed fro m existing customers o ver a set period New Business Total Co ntract Value (TCV) means the agg regate TCV for new clients, cross-sell and upsell client s Total Contract Value (TCV) means the total value of a rev enue generating co ntract written in the period o f perfo rmance less any residual value from a previous related contract. The value includes software licence and related maintenance, cloud, t esting and consulting services booking s Expansio n revenue means revenue from cross sell or upsell t o existing clients 29 Disclaimer SUMMARY INFORMATION This document and the associated transcript (together “the presentation”) has been prepared by Integrated Research Limited (ABN 76 003 588 449) (IRI). The presentation provides general background information about IRI's activities current at the date of preparation. IRI is not responsible for updating, and does not undertake to update, the presentation. It contains information in a summary form and does not purport to be complete. It should be read in conjunction with IRI's other announcements released to ASX (available at www.asx.com au). NOT INVESTMENT ADVICE The information contained in the presentation does not constitute investment or financial product advice or a recommendation to acquire shares or other financial products. It does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should consider these factors, with professional advice if appropriate, before making an investment decision. FINANCIAL INFORMATION All dollar values are in Australian Dollars (A$) unless stated otherwise. All financial information is presented in respect of the year ended 30 June 2022 unless stated otherwise. The presentation contains certain non-IFRS financial measures that IRI believes is relevant and appropriate to understanding its business. The presentation uses pro forma subscription revenue, which is used consistently without bias year on year for comparability and to present a clear view of underlying results. The basis of preparation and a reconciliation to statutory results is provided in the appendix to this presentation. A number of figures, amounts and percentages in the presentation are subject to the effect of rounding. FORWARD LOOKING STATEMENTS The presentation contains certain "forward-looking statements”. The words “anticipate”, "believe", “expect”, "project", "forecast”, “estimate”, “likely”, "intend”, “should", “could", "may", "target", “plan” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. While due care and attention has been used in the preparation of forward-looking statements, they are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors, some of which are beyond the control of IRI, that may cause actual results, conduct, performance or achievements to differ materially from those expressed or implied in such statements. There can be no assurance that the actual outcomes will not differ materially from these statements. You are cautioned not to place undue reliance on forward-looking statements, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption caused by the outbreak of COVID-19. Neither IRI nor any other person gives any representation, warranty, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in the presentation will actually occur. All forward looking statements in the presentation reflect views only as at the date of this presentation. Except as required by applicable law or the ASX Listing Rules, IRI disclaims any obligation or undertaking to publicly update any forward-looking statements, whether as a result of new information or future events or otherwise. NOT AN OFFER The presentation is for information purposes only and is not a prospectus, product disclosure statement or other disclosure or offering document under any law. The presentation does not constitute or contain an offer, invitation, solicitation, recommendation, advice or recommendation with respect to issue, purchase, or sale of any shares or financial products in any jurisdiction. The presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or to any 'US person’ (as defined in Regulation S under the US Securities Act of 1933, as amended (Securities Act) (US Person)). Securities may not be offered or sold in the United States or to US Persons absent registration or an exemption from registration. IRI shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or jurisdiction of the United States. GENERAL Each of IRI, its related bodies corporate and their respective affiliates, officers, employees, agents and advisers, to the maximum extent permitted by law, expressly disclaim any and all liability in respect of any expenses, losses, damages or costs (including indirect or consequential loss) arising from or in connection with this presentation or the information contained in or omitted from it, including, without limitation, any liability arising from fault, negligence or otherwise. No representation or warranty, express or implied, is made as to the fairness, currency, accuracy, reliability or completeness of information contained in the presentation. The information in the presentation remains subject to change without notice. PAST PERFORMANCE Statements about past performance are not necessarily indicative of and should not be relied upon as an indication of, future performance. 30 Thankyou