Info-Tech Systems Ltd. FY2025 Results Analysis: Sustained Growth and Strong Profitability
Info-Tech Systems Ltd., a provider of HRMS and accounting software solutions, has reported its financial results for the fiscal year ended 31 December 2025 (FY2025). The company showcased robust growth across key financial metrics, backed by its diversified revenue streams, expanding user base, and prudent cost management. Below, we analyze the highlights, historical performance, and outlook based on the latest disclosures.
Key Financial Metrics & Performance Table
| Metric |
FY2025 |
FY2024 |
YoY Change |
| Revenue |
S\$56.5m |
S\$43.7m |
+29% |
| Adjusted EBITDA |
S\$24.2m |
S\$17.0m |
+42% |
| Adjusted PAT |
S\$18.0m |
S\$12.3m |
+46% |
| Adjusted PAT Margin |
31.9% |
28.2% |
+3.7 pts |
| Gross Profit Margin |
85.2% |
85.6% |
-0.4 pts |
| Annual Recurring Revenue (ARR) |
S\$25.4m |
S\$21.6m |
+18% |
| Orderbook |
S\$29.0m |
S\$25.6m |
+13% |
| Total Dividend (per share) |
3.50 cents |
Not disclosed |
N/A |
| Total Cash Balance |
S\$67.3m |
S\$29.7m |
+127% |
Historical Performance Trends
- Revenue: Consistent upward trajectory from S\$30.8m in FY2022 to S\$56.5m in FY2025.
- Adjusted EBITDA margin: Improved from 38.9% in FY2024 to 42.8% in FY2025, reflecting operational leverage and cost discipline.
- User Base: The number of HRMS users grew from 787,000 in FY2024 to 970,000 in FY2025. Accounting software customers rose from 1,200 to 1,700.
- Recurring Revenue: Annual Recurring Revenue (ARR) increased steadily, supporting visibility for future earnings.
- Cash Generation: Free cash flow remains strong, with S\$16.9m generated in FY2025, supporting a sizable cash balance and dividend payout.
Exceptional Items & One-Offs
- FY2025 adjusted EBITDA and PAT exclude S\$2.9m in one-off listing expenses and S\$0.1m in Malaysia office relocation costs, indicating the reported growth is not inflated by irregular items.
Dividend Summary
- Total Dividend Proposed for FY2025: 3.50 cents per share (1.95 cents interim paid, 1.55 cents final proposed), representing a payout ratio of 60% of reported PAT and 50% of adjusted PAT.
- The final dividend of S\$5.03m is scheduled for payment on 15 May 2026.
Business Drivers & Segmental Analysis
- Growth Engines: Revenue growth was driven by a significant fourfold increase in Academy Training under the Services segment, as well as steady expansion in both HRMS and Accounting Software.
- Geographic Diversification: Malaysia, Hong Kong, and India showed robust demand, but Singapore remains the core market, contributing 76% of FY2025 revenue.
- Recurring Revenue: Continued ARR growth is underpinned by a rising subscription user base and a high customer retention rate of 90%.
Outlook & Guidance
- A new integrated CRM platform was launched in February 2026, complementing the current HRMS and accounting suite and aiming to drive further adoption.
- The company plans to expand its Academy’s digital and AI training offerings and increase geographic reach, including a new wholly owned subsidiary in Dubai, UAE.
- Management expects demand for AI-focused training and digitalisation initiatives across Singapore, Malaysia, Hong Kong, and India to sustain growth momentum.
- Operational scale is being leveraged in India and Malaysia for greater efficiency and service capabilities.
Conclusion: Assessment & Recommendations
Info-Tech Systems Ltd. delivered another year of strong financial performance in FY2025, with double-digit growth across all key metrics, robust recurring revenue streams, a substantial cash position, and a disciplined approach to costs and capital allocation. The outlook remains positive, supported by product innovation, regional expansion, and increasing demand for digital and AI-driven solutions.
- For Existing Investors: The company’s sustained growth, high margins, strong cash position, and progressive dividend policy suggest it remains a solid hold for investors seeking exposure to the digital transformation of SMEs in Asia. Consider retaining the stock to benefit from ongoing growth and dividend returns, barring any major external shocks.
- For Prospective Investors: Given the consistent performance, cash generation, and positive outlook, Info-Tech Systems Ltd. may present an attractive entry point for investors looking for growth in the enterprise software and services sector. However, monitor for any signs of market saturation, increased competition, or macroeconomic headwinds that could impact future growth.
Disclaimer: This analysis is based solely on information disclosed in the FY2025 financial results presentation of Info-Tech Systems Ltd. and does not constitute investment advice. Investors should conduct their own due diligence and consider their risk tolerance before making any investment decisions.
View Info-Tech Historical chart here
