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Melbourne-based sports technology company Catapult Group International (ASX: CAT) is making headway on the road to profitability after reporting another strong year of revenue growth driven by higher margins, a surge in recurring revenue and a loyal base of professional sports teams using its products globally.
The news sent the group’s shares to a record high of $4.88 today, with the stock trading 12 per cent higher at $4.83 at 1.34pm (AEST).
Catapult Group, the developer of a range of products for professional athletes designed to optimise performance, avoid injury and improve return to play, has posted a 19 per cent increase in revenue to US$116.5 million ($185 million) for the year to the end of March.
Notably, the company also topped US$100 million in annualised contract value (ACV), which Catapult says is the clearest sign of long-term SaaS (software-as-a-service) growth.
SaaS revenue surged 20 per cent to US$96 million in FY25, and this remains the biggest contributor to total recurring revenue which hit US$110 million.
CEO Will Lopes describes the FY25 earnings performance as “strong and purposeful”, meeting the group’s ambitious objectives set at the start of the year.
“Our annualised contract value – the clearest signal of our long-term growth – rose 18 per cent year-on-year, propelled by both of our core verticals,” says Lopes.
“Performance & Health once again delivered steady, dependable results, while Tactics & Coaching achieved its fastest annual growth rate in over six years.
“This dual-engine SaaS momentum, combined with disciplined cost management, enabled meaningful expansion in our profit margin.”
Lopes notes that Catapult retained 65c on every new dollar of revenue during the year.
“This is what sustainable operating leverage looks like,” he says.
“That leverage is translating into Rule of 40 progress, where we closed FY25 at 31 per cent – a tenfold increase from just two years ago.
“It’s a clear signal of the business we’re building: one that grows with strength at the top line, delivers operational efficiency, and captures the outsized opportunity in global professional sport.”
Catapult has been working alongside professional sports teams since 2006 providing wearable technology and video analysis that delivers key data to optimise player performance and avoid injury. It also assists clubs in recruiting and scouting for talent on the field.
Over the past year, Catapult has grown its customer base to more than 4,600 sporting teams globally, up 9 per cent from a year earlier.
Customer loyalty for the product remains strong with the company reporting ACV retention of 96 per cent.
The solid revenue performance saw Catapult cut its annual net loss after tax to US$8.8 million in FY25, from a US$16.7 million loss in FY24.
This was aided by the group’s profit margin on incremental revenue hitting 65 per cent, a full-year record, which delivered record free cash flow of US$8.6 million.
During the year, Catapult had a solid run of signing new deals in soccer across EMEA and Latin America, while maintaining growth in the baseball and basketball codes across North America.
Catapult CFO Bob Cruickshank says the latest result was achieved with “a razor-sharp focus on our cost base”.
“We made further progress in FY25 improving our cost margins towards our long-term targets,” says Cruickshank.
“I’m also pleased to see all our key SaaS metrics in great shape, which reflects our industry leadership position and bodes well for our future growth.
“Free cash flow of US$8.6 million is an excellent result and delivers on our commitment to grow our free cash flow this financial year.”
The surplus cash helped the group pay down debt to US$3.5 million at the end of March.
“With a net cash position in excess of US$7 million, we are now building resilience into our balance sheet, positioning us to continue executing on our objective of delivering profitable growth,” says Cruickshank.
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