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Your view on Catapult Sports Ltd (CAT) please

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Question asked 13/09/2025

Your view on Catapult Sports Ltd (CAT) please

Hi guys, Thank you for your daily insights which I find very informative. Catapult Sports has done really well over the last 5 months. I have noticed considerable insider selling in the last 3 months. Do you view this something that could be a concern, especially given that they are still unprofitable. Would appreciate your view on the stock. Thanks, Liz.

Answer

Hi Liz,

CAT recently surged to new highs after the company announced it continues to see growth in FY26 contract value, free cash flow and margins – a nice trifecta. CAT’s FY25 results showed strong momentum, with revenue up 19% to US$116.5 million and SaaS now accounting for 94% of total income. The company delivered record free cash flow (US$8.6 million), narrowed its net loss, and exceeded US$100 million in Annualised Contract Value (ACV), supported by high customer retention and growing cross-sell.

With improving margins and a focus on profitable SaaS expansion, CAT enters FY26 with positive operating momentum and a solid outlook.
Its market cap of $1.9bn might seem lofty while it’s not making money but its set to turn this dial in 2027, and they do have a lot of optionality with their platform, to plus in other revenue generating options, once the customer in ingrained on their platform.

While it’s always tempting to profit after a stock has run so hard we are remaining patient for now, especially as CAT has a good chance of entering the ASX200 when we get the next rebalance which would bring in index flows. We think CAT has a good chance of breaking out, at which point, we would look to trim our position, but not sell it entirely.

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Catapult Sports (CAT)

LAST UPDATED 13/09/2025 08:58

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