Can Atturra Sustain Profit Margins While Expanding Aggressively?

Strong Financial Momentum

Atturra Limited has delivered a compelling FY25 performance, posting a 24% year-on-year revenue increase to $300.6 million alongside a matching 24% rise in underlying EBITDA to $31.5 million. This growth reflects a blend of organic expansion and strategic acquisitions, reinforcing Atturra’s position as a leading advisory and IT solutions provider in Australia and beyond.

The company’s gross margin improved to 34%, signaling enhanced operational efficiency, although EBIT margin saw a slight dip to 5%. Earnings per share declined modestly by 7%, highlighting some margin pressures despite top-line strength.

Expanding Predictable Revenue and Cloud Leadership

Atturra’s focus on predictable revenue streams paid off, with 78% of total revenue now classified as recurring or long-term client revenue. Cloud services emerged as a key growth driver, contributing over $30 million in FY25 and poised for double-digit growth. The company’s managed cloud solutions, including private cloud offerings with GPU-as-a-service capabilities, have earned industry recognition, such as Microsoft’s Solutions Partner designation and NVIDIA acknowledgments.

This cloud momentum aligns with broader digital transformation trends, where scalable AI infrastructure and cybersecurity innovations are critical. Atturra’s strategic partnerships with technology leaders like Microsoft and Boomi further enhance its ability to deliver integrated, industry-specific solutions.

Proprietary IP and Strategic Acquisitions

A standout feature of Atturra’s FY25 was the growth of its proprietary intellectual property (IP) offerings, notably the Scholarion student information system and the Atturra Cloud Platform (ACP). Scholarion, built on Microsoft Dynamics 365, expanded its footprint with multiple school licenses sold and a strong pipeline for FY26. The IP business, with significantly higher gross margins than standard services, is expected to more than double revenue next year.

Acquisitions in New Zealand (Plan B) and the US (Kitepipe), along with the addition of DalRae Solutions for SAP capabilities, have broadened Atturra’s geographic reach and technology portfolio. Integration efforts are ongoing, with full consolidation targeted by mid-FY26.

Looking Ahead – FY26 and Beyond

Atturra’s outlook for FY26 is ambitious yet grounded, with revenue forecast to exceed $384 million and underlying EBITDA to surpass $40 million. The company plans to invest around $2.5 million in strategic sales capabilities and a similar amount in IP development, particularly for Scholarion. AI remains a core focus, both for internal efficiency gains and new business models.

Capital management will be sharpened to enhance balance sheet efficiency, while integration costs are expected to moderate. The company’s ability to sustain growth while improving earnings per share will be a key metric for investors to watch.