CAT is another ASX tech name that’s more than halved in recent months – frustrating as we hold the stock in our Emerging Companies Portfolio, although we did trim it in October above $7. This $1.1bn company only recently entered the ASX200 and is on the cusp of making money as revenue continues to grow and margins improve. Revenue of $US116mn in FY25 is forecast to growth to $US172mn by FY27 and as the business scales, operating leverage starts to kick in.
The company is a leading sports technology company that provides wearable performance analytics, tracking systems and data solutions to elite and professional sports teams globally. Its hardware (GPS units, inertial sensors) and software help teams monitor athlete workload, physical performance, injury risk, and tactics, turning raw movement and physiological data into actionable insights. The company has already built a large recurring subscription and services base that underpins long-term revenue.
Catapult’s foundation in elite sports data gives it a head start, but AI flattens traditional technology barriers, turning specialist analytics into a broader competitive battleground.
- Opportunity: AI can embed Catapult deeper into workflows, expand offerings, and cement recurring revenue.
- Risk: AI lowers entry hurdles, enables internalisation by large clubs, and accelerates competition from leaner, cheaper analytics tools.
Simply, CAT’s AI future is a double-edged sword; it can make its performance insights indispensable, but it also empowers rivals and customers to bypass traditional technology moats unless CAT continuously innovates.
- We are backing CAT to keep ahead of the pack, but the space needs monitoring as the AI evolution gathers momentum.
We are long and bullish towards CAT around $3.70
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