Catapult’s Rapid Growth Raises Questions on Integration and Margin Sustainability

Strong Growth Anchored in Core SaaS Verticals

Catapult Sports Ltd, a leader in sports technology solutions, has delivered a compelling set of financial results for the half-year ended September 30, 2025. The company’s Annualized Contract Value (ACV) surged 19% year-on-year to US$115.8 million, underscoring the sustained demand for its subscription-based software services. This growth was primarily driven by its two core SaaS verticals – Performance & Health and Tactics & Coaching, which continue to deepen their integration into professional sports teams’ workflows globally.

Performance & Health, which includes wearable technology and velocity-based training solutions, expanded its footprint significantly, bolstered by the recent acquisition of Perch. Meanwhile, Tactics & Coaching, encompassing video and analytics tools, saw a 16% increase in ACV, supported by new product launches and the addition of IMPECT, a leader in soccer scouting analytics.

Profitability and Operational Efficiency on the Rise

Catapult’s disciplined cost management translated into a 50% increase in Management EBITDA, reaching US$9.7 million. This improvement reflects not only top-line growth but also enhanced operational leverage, with the company achieving a record 33% on the Rule of 40 metric; a key benchmark for SaaS companies that balances growth and profitability. Contribution margins exceeded 50% for the first time in a first half-year period, signaling improved efficiency even during the company’s peak sales season.

Despite a one-time payroll tax expense related to share-based payments, Catapult maintained strong free cash flow generation, nearly matching the full-year free cash flow of FY25 within just six months. The company also eliminated its debt, ending the period with US$11.3 million in cash, positioning it well for future investments and growth.

Strategic Acquisitions Expand Market Reach and Product Depth

The acquisitions of Perch and IMPECT are pivotal to Catapult’s strategy of broadening its product ecosystem and enhancing cross-selling opportunities. Perch’s velocity-based training technology complements Catapult’s existing Performance & Health offerings, while IMPECT’s soccer scouting analytics deepen the company’s presence in one of the world’s largest sports markets. These moves not only diversify Catapult’s revenue streams but also strengthen its competitive moat by offering a more comprehensive, integrated platform to professional teams worldwide.

Looking ahead, Catapult plans to focus on the seamless integration of these acquisitions to deliver a unified customer experience. The company’s ongoing investment in research and development, including AI-driven automation and enhanced video analysis tools, aims to maintain its innovation edge and support long-term growth.

Outlook – Confident in Sustained Growth and Margin Expansion

Catapult’s management remains optimistic about the remainder of FY26, expecting continued strong ACV growth, margin improvement, and higher free cash flow, all aligned with its Rule of 40 discipline. The company’s commitment to cost discipline and operational excellence, combined with its expanding product suite, positions it well to capitalize on the growing demand for data-driven sports performance solutions globally.