StepChange Posts $2.69M Loss as Acquisition and IPO Costs Weigh on FY25
StepChange Holdings has reported FY25 results that beat expectations, following its acquisition of StepChange Consultants and successful ASX listing. The company sets a promising stage for FY26 with strong operational momentum.
- StepChange Consultants exceeds FY25 revenue and EBITDA forecasts
- Successful $14.7 million capital raise and ASX listing in July 2025
- Acquisition of StepChange Consultants completed for $18.3 million
- FY25 loss of $2.69 million driven by acquisition and IPO costs
- Focus on ERP transformation services leveraging SAP software
A Milestone Year for StepChange
StepChange Holdings Limited marked a significant milestone in FY25 by completing the acquisition of StepChange Consultants and securing a listing on the Australian Securities Exchange (ASX) in July 2025. These strategic moves have positioned the company to consolidate its presence in the enterprise software consulting sector, particularly in the niche of ERP transformation services.
Financial Performance Exceeds Expectations
StepChange Consultants delivered audited FY25 results that slightly outperformed the forecasts outlined in the company’s June 2025 replacement prospectus. Revenue came in at $42.53 million, surpassing the forecast by $0.34 million, while EBITDA including significant items reached $3.81 million, beating expectations by $0.07 million. These figures provide a solid operational foundation as StepChange moves into FY26 with consolidated reporting.
Navigating Initial Costs and Strategic Investments
Despite the positive operational results, StepChange reported a loss after operating tax of $2.69 million for FY25. This loss aligns with management’s expectations for the company’s inaugural year and primarily reflects one-off expenses related to professional services for the acquisition and IPO process. Legal, accounting, and advisory fees associated with the acquisition and ASX admission accounted for a significant portion of these costs.
Capital Raise and Acquisition Details
Following the fiscal year-end, StepChange successfully raised $14.7 million through the issuance of 73.6 million shares at $0.20 each. The acquisition of StepChange Consultants was completed for an initial consideration of $18.3 million, split between $10.8 million in cash and $7.5 million in equity. This capital injection and acquisition strategy underscore the company’s commitment to growth and market expansion.
Strategic Focus on ERP Transformation
StepChange’s core business revolves around streamlining enterprise resource planning (ERP) systems, with a particular emphasis on transformation and implementation services using SAP software modules. This focus taps into a growing demand for modernising business processes and improving operational efficiencies, positioning StepChange as a key player in the technology consulting landscape.
Bottom Line?
StepChange’s FY25 results and strategic moves lay a promising groundwork, but investors will keenly watch FY26 for proof of sustained profitability and integration success.
Questions in the middle?
- How will StepChange’s consolidated FY26 results reflect integration synergies?
- What is the company’s strategy to transition from initial losses to profitability?
- How will market conditions impact demand for ERP transformation services?
