Shares of Catapult Group International Ltd (ASX: CAT) are on the rise this Wednesday morning, hitting a record high of $4.60, up 7% in early trade. The sports technology company, listed on the ASX 300 tech index, delivered strong full-year results for FY25 that have clearly impressed investors, driving significant gains in its share price.
Strong Revenue and Contract Growth Drive Momentum
For the 12 months ending 31 March 2025, Catapult reported a 19% increase in revenue in constant currency terms, reaching US$116.5 million (approximately A$185 million). This solid revenue growth was accompanied by a healthy 18% year-on-year increase in the company’s Annual Contract Value (ACV), which hit a record US$101.2 million (A$161 million).
ACV is a critical metric for subscription-based businesses like Catapult, reflecting the total value of recurring revenue contracts under management. The 18% growth in ACV demonstrates Catapult’s ability to not only attract new customers but also to retain and expand existing contracts. Indeed, the company boasts an impressive 96% ACV retention rate, underscoring strong customer loyalty and satisfaction.
This growth in contracts was the largest incremental increase in the company’s history, adding over US$15 million in ACV during the year. These figures highlight the expanding footprint of Catapult’s technology across global sports markets.
Dual Vertical Growth: Performance & Health and Tactics & Coaching
Catapult’s business is broadly divided into two key verticals: Performance & Health (P&H) and Tactics & Coaching (T&C).
- Performance & Health (P&H): This vertical centers on Catapult’s wearable technology and software solutions designed to monitor athlete health, performance, and recovery. P&H saw an 18% increase in ACV in constant currency, driven by geographic expansion and deeper penetration in existing sports markets.
- Tactics & Coaching (T&C): Focused on video analysis and tactical insights, T&C recorded an equally impressive 18% ACV growth. A standout performer within this segment was Catapult’s New Video Solutions suite, which grew 42% year on year. The growth was also propelled by strong demand from American football, fueled by the company’s innovative sideline video solutions.
The complementary nature of these two verticals has created a robust dual-engine growth model for Catapult, underpinning sustained momentum across its SaaS offerings.
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Profitability and Cash Flow Improvements
Catapult’s FY25 results also demonstrated significant improvements in profitability and cash flow generation. The company’s management EBITDA soared to US$14.8 million (A$24 million), a remarkable increase of approximately 250% compared to the prior year. This surge reflects disciplined cost management and operating leverage coming through strongly.
Another highlight was free cash flow, which hit a record US$8.6 million (A$14 million). The profit margin on incremental revenue reached 65%, marking the highest level in the company’s history. This strong free cash flow generation indicates a healthy and sustainable business model that efficiently converts revenue growth into cash profits.
CEO Commentary: A Year of Purposeful Growth
Catapult’s CEO, Will Lopes, expressed confidence in the company’s FY25 performance, describing it as “strong and purposeful.” He highlighted the growth of Annualized Contract Value as a clear indicator of long-term success.
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“Our Annualized Contract Value — the clearest signal of our long-term growth — rose 18% year-on-year, propelled by both of our core verticals,” Lopes said. “Performance & Health once again delivered steady, dependable results, while Tactics & Coaching achieved its fastest annual growth rate in over six years.”
He also emphasized the company’s operating leverage and disciplined cost control, noting that Catapult retained 65 cents on every new dollar of revenue, which he described as “what sustainable operating leverage looks like.”
Outlook: Optimistic but Cautious
While Catapult did not provide explicit guidance for FY26, CEO Will Lopes expressed a positive outlook for the year ahead. He pointed to expected continued strong ACV growth, low customer churn, improvements in cost margins, and higher free cash flow generation.
These factors, Lopes noted, are “clear signs that our operating model is scaling with discipline and aligned to the Rule of 40” — a metric popular with SaaS investors that combines revenue growth and profit margin to evaluate performance.
Market Reaction and Share Price Performance
The market has responded enthusiastically to Catapult’s FY25 results, pushing the share price up over 7% to an all-time high of $4.60. Over the past year, Catapult shares have more than tripled, gaining over 200% as investors have recognized the company’s successful execution and growth potential.
This strong price appreciation underscores investor confidence in Catapult’s unique position within the global sports technology market, where demand for data-driven athlete performance solutions continues to accelerate.
Should Investors Consider Catapult Now?
Despite the impressive financials and growth prospects, some investment experts urge caution. Scott Phillips of Motley Fool Australia, for example, recently noted that while Catapult is a strong company, there are other stocks he currently views as better buying opportunities.
Nonetheless, Catapult’s combination of record revenue, strong recurring contract growth, significant profit margin expansion, and robust free cash flow make it a compelling proposition for investors seeking exposure to the fast-growing sports technology sector.
Final Thoughts
Catapult Group International Ltd has clearly demonstrated its ability to grow and innovate in a competitive landscape. With strong financial results, expanding contract values, and innovative solutions in athlete monitoring and tactical coaching, Catapult is well-positioned to continue its upward trajectory.
As the company scales its operations globally and further embeds itself in key sports markets — including American football, soccer, and others — the FY26 year promises to be another exciting chapter for Catapult shareholders.
