How RPMGlobal’s $63.6M Advisory Sale Fuels Software Growth and FY26 Ambitions
RPMGlobal completes its transition to a pure-play software company, reporting robust FY25 results driven by subscription revenue growth and a $63.6 million Advisory divestment. The company projects significant margin expansion and revenue growth in FY26 backed by a $200 million contract backlog.
- Advisory Services divested for $63.6 million, generating $47.5 million profit from discontinued operations
- Software subscription revenue up 20% to $54.8 million; total contract value sales increased 31% to $100.8 million
- Annual Recurring Revenue (ARR) grew 16% to $71.8 million, with transition to subscription licensing now complete
- FY26 guidance forecasts revenue of $88-92 million and operating EBITDA of $23-25 million, reflecting cost savings and contract backlog
- Capital management includes $21 million proposed capital return pending ATO approval and ongoing share buyback program
A Strategic Shift Completed
RPMGlobal Holdings Limited has marked a pivotal moment in its corporate evolution by completing the divestment of its Advisory Services division for $63.6 million. This move crystallizes its transformation into a pure-play software company, focusing on subscription-based offerings that are gaining strong traction in the mining technology sector.
The sale of RPM Advisory Services Pty Ltd to SLR Consulting Australia Pty Ltd not only delivered a substantial $47.5 million profit from discontinued operations but also enabled RPMGlobal to streamline its operations, shedding legacy costs associated with office leases and IT contracts. These restructuring efforts, while incurring $3.3 million in transaction-related expenses, are expected to yield significant cost savings in the coming year.
Robust Software Performance
Annual Recurring Revenue (ARR) rose 16% to $71.8 million as of August 2025, reflecting strong customer retention and upselling efforts. Notably, the Americas sales team’s rebuild paid dividends, increasing software sales to $45.2 million from $9.0 million the previous year, while Asia and Europe also contributed solid growth.
Innovation and Market Expansion
RPMGlobal continues to invest in product innovation, increasing R&D expenditure to accelerate the development of XERAS Cloud, which launched in May 2025 and quickly generated $22.4 million in license sales. The company also highlighted successful pilot projects and new global framework agreements with major miners such as Barrick, Kinross, Freeport, First Quantum Minerals, and Newmont, underpinning a robust pipeline.
Strategic initiatives like FleetOptimiser and AMT Insights leverage AI and cloud technologies to enhance operational decision-making and asset management, positioning RPMGlobal well for future growth and entry into adjacent markets.
Positive Outlook and Capital Management
Looking ahead, RPMGlobal projects FY26 total revenue between $88 million and $92 million, with operating EBITDA expected to more than triple to $23-25 million. This outlook is supported by $200 million in pre-contracted, non-cancellable recurring software revenue and annual operating cost reductions of $8.2 million following restructuring.
On the capital front, the company has submitted a request to the Australian Taxation Office for approval of a $21 million capital return related to the Advisory divestment, pending shareholder approval. Additionally, RPMGlobal continues its on-market share buyback program, having repurchased nearly 18 million shares since mid-2022.
Overall, FY25 was a transformative year for RPMGlobal, setting a strong foundation for sustainable growth as a focused software provider in the mining industry.
Bottom Line?
RPMGlobal’s FY25 results and strategic divestment set the stage for accelerated software growth and margin expansion in FY26.
Questions in the middle?
- How will the pending ATO ruling on the capital return impact shareholder returns and timing?
- Can RPMGlobal replicate its Americas sales success in the African market with its software offerings?
- What are the risks and opportunities in expanding into adjacent markets beyond core mining software?
