Gartner Australasia profit dips as costs rise in 2025

Gartner Australasia reported lower profit for 2025 as revenue remained broadly flat and expenses increased, although the company maintained a strong cash position and expanded shareholders' equity.

Profit before income tax fell to AUD $13.3 million in 2025 from AUD $14.0 million a year earlier, while income tax expense remained largely unchanged at AUD $4.3 million. Revenue declined marginally to AUD $272.6 million from AUD $273.3 million.

The company provides technology research, advisory and conference services across Australia and New Zealand. Its revenue is generated from business and technology insights, consulting, conferences and services provided under transfer pricing arrangements with related entities.

Revenue mix

Insight revenue remained Gartner Australasia's largest source of income, contributing AUD $191.3 million during the year, compared with AUD $192.9 million in 2024. Conference revenue declined slightly to AUD $42.7 million from AUD $43.4 million.

Consulting revenue increased to AUD $4.1 million from AUD $2.1 million, while transfer pricing revenue rose to AUD $34.2 million from AUD $33.6 million. Management fee income recorded in 2024 was not repeated in 2025.

The combined effect left total revenue little changed year on year, declining by less than 1%.

Cost pressures

Employee benefits remained the company's largest expense category, rising to AUD $144.3 million from AUD $143.3 million. Share-based payment expenses increased to AUD $3.1 million from AUD $2.3 million.

Depreciation and amortisation expenses rose slightly to AUD $4.7 million. Other expenses increased to AUD $3.7 million from AUD $2.3 million, driven largely by higher miscellaneous costs.

Despite these increases, foreign exchange movements resulted in a gain, compared with a loss in the previous year, helping offset some expense growth.

Cash strength

The company ended the year with cash and cash equivalents of AUD $147.3 million, up from AUD $139.1 million in 2024. Cash held included AUD $100 million in short-term deposits.

Operating activities generated AUD $13.1 million in net cash during the year, compared with AUD $18.4 million in 2024. Lower operating cash flow reflected movements in working capital, particularly changes in payables.

The company spent AUD $762,516 on plant and equipment and paid AUD $4.1 million in lease liabilities.

Balance sheet

Total equity increased to AUD $76.9 million at the end of 2025 from AUD $65.9 million a year earlier. Retained earnings rose to AUD $16.3 million from AUD $6.9 million, reflecting the year's profitability.

Trade and other receivables declined to AUD $31.6 million from AUD $36.5 million, while prepayments fell to AUD $18.2 million from AUD $19.3 million.

Unearned revenue, a key liability reflecting contracted services yet to be delivered, stood at AUD $109.0 million, down from AUD $116.6 million a year earlier.

Related activity

Transactions with related parties remained significant. Services rendered by related entities totalled AUD $89.7 million during the year, down from AUD $92.0 million in 2024. Services provided to related parties generated AUD $34.2 million.

The company said it continues to rely significantly on the sales and support of information technology industry research and analysis provided by Gartner Ireland.

No dividend was paid to the immediate parent entity during the 2025 financial year.

There were no significant events disclosed after the balance sheet date.