Growth
>20%
Revenue growth per year,
in the next 3-5 years (2027-2029)
in the next 3-5 years (2027-2029)
Investment case
IAR is a world leader in the rapidly expanding market for secure, reliable, and high-quality software for embedded systems. With over 40 years of experience and a period of modernization and change, IAR is well positioned for growth. We have a strong financial position with a strong cash flow, liquidity and no interest bearing debt, and have built a dedicated team with extensive expertise in embedded solutions and services.
Why invest in IAR
Strong position in a rapidly evolving market
The company’s flexible business model, including
the new subscription offer and traditional perpetual licenses, nurtures robust customer relationships and ensures high retention rates. The unique nature of our broad product portfolio for embedded solutions and services makes IAR a vital partner for our customers.
the new subscription offer and traditional perpetual licenses, nurtures robust customer relationships and ensures high retention rates. The unique nature of our broad product portfolio for embedded solutions and services makes IAR a vital partner for our customers.
Proven ability to commercialize leading-edge technology
The rapid growth of digital products and services is driving the market for embedded systems. In addition to digitization and electrification, safety and security are becoming increasingly important. IAR stands at the forefront of the embedded systems industry. Our software helps customers develop and optimize embedded systems and provides security solutions to protect clients’ end users and assets.
Our most important competitive advantages
- A unique combination of developer tools, professional services, and security products.
- The independence that allows us to support different processor architectures and a broad range of devices.
- Superior quality, ensuring no compromise on code performance, reliability, and ease of use.
- Functional safety-certified toolchains and security solutions that are integrated into development and production.
Profitable growth and strong financial position
IAR’s strong financial position enables flexibility and ensures the conditions for planned investments in tech development and sustainable growth. The long-term financial target is 20% annual organic growth and an operating margin exceeding 20%. Revenue growth will come from geographical and technological expansion, increasing market reach, and the transformation of moving from a perpetual business model into a subscription, increasing our Annual Recurring Revenue over time.
Our dividend policy is to return 30–50% of the profit after tax to shareholders annually. Over the past year, IAR has returned capital to shareholders through share repurchases and dividends.
Our dividend policy is to return 30–50% of the profit after tax to shareholders annually. Over the past year, IAR has returned capital to shareholders through share repurchases and dividends.
Analyst coverage
Sponsored research
DNB analysis
IAR has commissioned DNB to conduct equity research aimed at enhancing transparency and raising awareness of the company as an investment opportunity.
