ReadyTech Holdings Ltd (RDY)
Is it time to pull the pin on Readytech? It seems to have dropped far more precipitously than other techs like SiteMinder and Life360?
The Latest Q&A
Answer
Hi Angus,
We believe the big difference between the likes of RDY and SDR/360 is the quality of their recent 1H26 trading results:
RDY has released its 1H26 result and updated its outlook, with the half coming in slightly softer than expected, as revenue and Cash EBITDA were around $2m below forecasts. FY26 guidance has been rebased lower, with Cash EBITDA now expected to be ~20% below prior expectations, and FY27 targets withdrawn. While the reset is disappointing, it clears the deck for execution, with the stock now trading on a “no-to-low growth” Cash EBITDA multiple, despite historically delivering mid-to-high single-digit growth.
If we had no position RDY would be on our radar today especially as a potential M&A target – remember Pacific Equity Partners bid $4.50 per share for ReadyTech in 2022, valuing the company at roughly $480m, but the takeover was never finalised, they could get it cheaper today!
- We are likely to stay with RDY for now as we have ~20% cash on the sidelines in the Emerging Companies Portfolio.
