IVA Technologies: profit down 72%, but 7.2% dividend yield holds on valuation

On September 1, IVA Technologies reported H1 2026 results: revenue down 8.5% YoY, net profit down 72.0%. The company still maintains an EBITDA margin of 36.7% and offers a 7.2% dividend yield on our estimate. We examine what is behind the profit drop and why the shares trade at a discount to their own history.

Key takeaways

— Revenue for H1 fell 8.5% YoY, but EBITDA margin remained high at 36.7%

— Net profit dropped 72.0% due to one-off factors, not operational issues

— Leverage stands at 0.37x LTM EBITDA, but net debt rose by 0.8 bn RUB in H1

— Shares trade at EV/EBITDA 3.9 vs. 3-year average of 9.0 – a 56% discount

— Dividend yield of 7.2% on our estimate exceeds the fair 7.0%

— LTM operating cash flow of 1.7 bn RUB covers dividend payments

Key figures, RUB bn

Revenue for H1 fell 8.5% YoY, but EBITDA margin remained high at 36.7%

For H1 2026, revenue amounted to RUB 3,100.0 million, down 8.5% from the same period a year earlier. The decline occurred amid a challenging macroeconomic environment, but the company maintained operational efficiency: EBITDA margin for the reporting period was 36.7%, only slightly below the 42.4% a year earlier.

The revenue decline did not lead to a proportional drop in EBITDA: the margin remained at a level that supports operating cash flow. Over the last twelve months, operating cash flow amounted to RUB 1,700.0 million, exceeding net profit for the same period – RUB 1,202.1 million.

Net profit dropped 72.0% due to one-off factors, not operational issues

Net profit for H1 2026 was 8.8% of revenue versus 28.8% a year earlier – a 72.0% drop YoY. The main reason was one-off items not related to core operations: last year's profit was boosted by non-operating income that did not recur in the reporting period.

Operating activity remains stable: EBITDA margin of 36.7% and positive operating cash flow of RUB 1,700.0 million over the last twelve months confirm that the business generates cash despite the revenue decline.

Leverage stands at 0.37x LTM EBITDA, but net debt rose by 0.8 bn RUB in H1

At the end of the reporting period, net debt stood at RUB 696.757 million, corresponding to 0.37x EBITDA over the last twelve months. This is a moderate level that does not create pressure on financial stability.

However, net debt increased by RUB 0.8 billion compared to the previous reporting date and by RUB 0.9 billion over the last twelve months. The increase is likely related to financing capital expenditures and dividend payments, but the exact reasons are not disclosed in the report.

Shares trade at EV/EBITDA 3.9 vs. 3-year average of 9.0 – a 56% discount

The current EV/EBITDA multiple is 3.9, significantly below the three-year average of 9.0. This means the market values the company at a 56% discount to its own history, despite stable operating margin and moderate debt.

P/E LTM is 5.6, also indicating undervaluation relative to historical levels. However, investors should note that EBITDA is inflated due to capitalised development costs, so the real valuation may be higher than it appears at first glance.

Dividend yield of 7.2% on our estimate exceeds the fair 7.0%

Over the last twelve months, the company paid no dividends, but our model estimates the next payment at RUB 4.79 per share, implying a forward yield of 7.2%. This is above the level we consider fair for this issuer – 7.0%.

The implied payout ratio is 0.34 of profit, leaving enough funds for reinvestment in development. Moreover, operating cash flow over the last twelve months – RUB 1,700.0 million – comfortably covers potential dividend payments.

LTM operating cash flow of 1.7 bn RUB covers dividend payments

Over the last twelve months, operating cash flow amounted to RUB 1,700.0 million, significantly exceeding net profit for the same period – RUB 1,202.1 million. This indicates high earnings quality: the company generates more cash than its income statement shows.

Given the projected dividend of RUB 4.79 per share and the current market capitalisation of RUB 6,785.0 million, the total payout will be about 0.34 of profit. This level of payout does not pose a liquidity risk, especially with positive operating cash flow.

Valuation on the latest reported figures

Bottom line

In H1 2026, IVA Technologies showed stable operating margin (EBITDA 36.7%) and moderate debt (0.37x LTM EBITDA), but net profit fell 72.0% due to one-off items. Shares trade at a 56% discount to their own history on EV/EBITDA, making them attractive for value investors. However, the key question is whether the company can stop the revenue decline and maintain cash flow at RUB 1.7 billion LTM. If so, the 7.2% dividend yield looks sustainable; if not, the discount may persist.