Catapult’s Narrowing Loss Raises Questions on Cost Control and Market Risks
Catapult Group International Ltd reported a 16.5% increase in revenue to $116.5 million for FY25, driven by strong subscription growth and improved operational efficiency. The company narrowed its net loss after tax to $8.8 million, signaling progress in its global sports technology strategy.
- 16.5% revenue growth to $116.5 million
- Subscription revenue up 17.1%, driving SaaS expansion
- Net loss after tax reduced by 47.3% to $8.8 million
- Annualized Contract Value (ACV) increased 16.6%
- Free cash flow nearly doubled to $8.6 million
Strong Revenue Growth and Improved Profitability
Catapult Group International Ltd has delivered a solid financial performance for the year ended March 31, 2025, with revenues climbing 16.5% to US$116.5 million. This growth was primarily fueled by a 17.1% increase in subscription revenue, underscoring the company’s successful expansion of its Software-as-a-Service (SaaS) offerings in the elite sports technology market.
Despite continuing to operate at a loss, Catapult narrowed its net loss after tax to US$8.8 million, a significant improvement from the US$16.7 million loss reported in the previous year. This reduction reflects disciplined cost management, with variable and fixed costs rising only marginally despite the revenue increase.
Key SaaS Metrics and Customer Growth
Catapult’s key SaaS performance indicators showed encouraging trends. The Annualized Contract Value (ACV) rose 16.6% to US$101.2 million, while the number of multi-vertical customers surged 53.4% to 741. Customer retention remains robust, with ACV churn increasing slightly to 4.3% from 3.5% the prior year, reflecting healthy ongoing demand for Catapult’s integrated wearable and video analytics solutions.
The company’s lifetime duration metric, which measures the average length of customer subscriptions, extended to 7.8 years, indicating strong customer loyalty and recurring revenue potential.
Product Innovation and Strategic Partnerships
Innovation remains central to Catapult’s strategy. The launch of Vector 8, its most advanced athlete monitoring system, and Hub Pro, the next generation of its coaching platform, demonstrate the company’s commitment to enhancing real-time athlete performance insights and coaching workflows.
Catapult also expanded its live sideline video solutions and introduced new sport-specific algorithms, broadening its product capabilities across basketball, rugby, and tennis. Strategic partnerships with major sports organisations such as the Rugby Football Union, Premiership Rugby, the Brazilian Football Confederation, and UEFA further cement Catapult’s position as a global leader in sports technology.
Financial Position and Capital Management
The company’s financial health is supported by a strong cash position of US$10.8 million and a reduced drawn balance on its revolving loan facility, down to US$3.5 million from US$11 million the previous year. Free cash flow nearly doubled to US$8.6 million, reflecting improved operational cash conversion.
Catapult continues to invest in long-term software development and product innovation, balancing growth with prudent capital management. The company did not pay dividends and does not propose to do so in the near term, focusing instead on reinvesting in its platform and global expansion.
Executive Remuneration and Governance
Catapult’s executive remuneration framework aligns with global SaaS industry benchmarks, combining fixed salaries with performance-based equity incentives. The company’s governance structure includes a diverse board with deep expertise in technology, sports, and finance, supporting the company’s growth ambitions and risk management.
The independent audit by Ernst & Young was unqualified, providing assurance on the integrity of the financial statements and disclosures.
Bottom Line?
Catapult’s FY25 results highlight a SaaS business gaining momentum, but investors will watch closely how it balances innovation, customer retention, and profitability in a competitive sports technology landscape.
Questions in the middle?
- Can Catapult sustain its subscription revenue growth amid increasing competition?
- What impact will new product launches like Vector 8 have on customer acquisition and retention?
- How will Catapult manage cost pressures while investing in global expansion and R&D?
