Catapult was out with FY26 earnings this morning, and while we’re writing this note ahead of the call with management at 9.30am, the result looks pretty good to us on first pass, particularly in the context of how weak the shares have been (down 10% this week alone). Revenue, Annual Contract Value (ACV) and earnings where either inline, or slightly ahead of expectations, and the business continues to show the operating leverage we’re looking for.
- Revenue increased 21% to US$140.7m, ahead of expectations of US$138.5m.
- Management EBITDA rose 67% to US$24.7m, beating expectations of US$20.3m and ahead of the company’s March guidance for ~50% growth.
- Annualised Contract Value (ACV) increased to US$133.8m, up 28% on a constant currency basis, or 18% excluding acquired ACV from Perch and IMPECT.
- SaaS revenue rose 21% to US$118.6m, while SaaS and other recurring revenue now represents 95% of total revenue.
- Free cash flow excluding transaction costs was US$6.5m, ahead of the company’s March trading update range of US$5-6m.
- Catapult added 576 new Pro Teams during the year, while average ACV per Pro Team increased 10% to more than US$30,000.
- Retention remained above 96%, an important metric for a SaaS business.
- Rule of 40 reached a record 36% excluding acquired ACV, or 46% including acquired ACV, a strong signal that growth and profitability are becoming better balanced.
Catapult is no longer just growing revenue; it is starting to convert that growth into earnings. It’s only early days, and the period was clouded by acquisitions, but we are seeing signs that scale is flowing through to earnings and cash flow.
Annualised Contract Value (ACV) is particularly important. ACV is CATs key lead indicator of future revenue, and growth of 28% was solid. Importantly, if we exclude the acquired ACV from Perch and IMPECT, ACV still grew 18%, suggesting the core business is continuing to expand rather than relying solely on acquisitions.
The operating metrics also looked healthy. Adding new teams while increasing average ACV per team and keeping retention above 96% is a good combination. It suggests Catapult is landing new customers, expanding existing relationships and maintaining customer stickiness – all important aspects.
The acquisitions of Perch and IMPECT also broaden the platform. Catapult is now moving beyond athlete tracking and video analysis into a more integrated sports performance, coaching, gym monitoring and scouting intelligence platform. The more workflows CAT can own inside a professional sports organisation, the more valuable and embedded it becomes, and the threat of AI is reduced.
In terms of guidance, they stuck to their usual script, saying they expect strong ACV growth, low churn, further margin improvement and higher free cash flow in FY27, without putting specific numbers around this. The balance sheet is in good shape as well, with more than US$53m of cash and no debt.
- Overall, we think the result is positive on first pass, noting we’re about to jump on a call with management. Hopefully it will arrest some of the recent underperformance of the share price. Will update this note post the call with management (will be available on the website)
MM is long & bullish CAT in the Emerging Companies Portfolio
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