Irish Rugby chief executive Kevin Potts believes the IRFU is in a "robust" financial position, despite reporting a deficit of €4.2m for the 2024/25 season.
The union published its annual accounts for the year ending 31 July 2025, which saw income of €98m, an annual rise of €18.8m.
That leap came primarily from an increase in matchday revenues, commercial partnerships and broadcast revenues.
While the union is once again reporting a deficit, the IRFU says it "expects to return to a breakeven position" for the 2025/26 season, in large part down to the British and Irish Lions tour, as well as this month's lucrative Test against New Zealand in Chicago.
The 2024/25 deficit is also considerably lower than the previous year, where the IRFU had a deficit of €18.4m due to the costs associated with the World Cup.
The IRFU reported cash and cash investments of €62.6m, no debt, and net assets of €81.6m.
"I think at its basic level, the IRFU, our finances are pretty robust," CEO Kevin Potts told RTE Sport.
"We have a very strong balance sheet, which means we can generally absorb any major shocks. However, we do, like most unions around the world, need to get to a point where on an annual basis we are achieving financial sustainability.
"And what I mean by that is that the revenues we're generating are covering the costs that we're incurring. And that's an ongoing challenge for us in the IRFU, our provinces and the game globally.
"There are challenges in achieving sustainability on an annual basis. It is a challenge that we in the IRFU and our provinces and indeed unions across the world are determined to meet.
"There are green shoots in terms of additional revenues in the years ahead, especially from the Nations Championship.
"So I'm confident that we are in a relatively strong position, albeit we will need to continue to manage our cost base downwards, which is something we're currently doing."
The IRFU chief executive believes the upcoming Nations Championship could be a financial gamechanger for Irish rugby.
The new competition, which will run in non-World Cup and non-Lions years, will see a tournament structure applied to the traditional summer and winter Test windows between northern and southern hemisphere sides.
Ireland will travel to face the Wallabies and Japan in Australia, as well as the All Blacks in New Zealand next summer, before welcoming Argentina, Fiji and South Africa to Dublin next November, before a finals weekend in London crowns the inaugural winner.
"We spent quite a number of years pulling it together. We're really excited," Potts added.
"It's going to bring real meaning and jeopardy to the traditional November and summer windows and cap the tournament off with a destinations final weekend next year in London. So we're really excited about this.
"There will be plenty of innovation and things will be done differently to try and attract far wider and younger fan base, which we need to support the game.
"And the initial interest from broadcasters and sponsors is very positive. So for me, I'm beginning to see some real green shoots of increasing revenues emerging from the Nations Championship. We see how it all evolves over the coming years.
"We will keep it under constant review. But we, and I, am really optimistic that it's going to turn the dial for rugby across the globe."
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