ReadyTech Holdings has reported a significantly reduced half-year loss of $1.35 million, driven by 5.6% revenue growth and strong enterprise product performance despite challenges in mature segments and a cyber incident.
- Half-year revenue up 5.6% to $61.6 million
- Loss after tax narrowed to $1.35 million from $18.7 million
- Recurring revenue now 84% of total, reinforcing SaaS model strength
- Major contract wins with Skills Tasmania and Workplace Injury Commission
- Increased expenses reflect targeted investments in R&D and growth
Financial Performance Highlights
ReadyTech Holdings Limited has posted a markedly improved half-year result for the period ending 31 December 2025, reporting a loss after tax of $1.35 million. This compares favourably to a substantial loss of $18.7 million in the same period last year. Revenue rose 5.6% to $61.6 million, underpinned by growth in the company’s enterprise flagship products.
The company’s subscription revenue, a key indicator of its recurring income strength, increased by 3.8% to $51.8 million, now representing 84% of total revenue. This solidifies ReadyTech’s position as a SaaS provider with a resilient business model.
Strategic Wins and Operational Challenges
ReadyTech’s CEO, Marc Washbourne, highlighted significant contract wins during the half, including major agreements with Skills Tasmania and the Workplace Injury Commission. These deals bolster the company’s footprint in government and workforce solutions, particularly within education and employment services.
However, the company faced headwinds from elevated churn in its mature segments, notably managed payroll and SME education, alongside a cyber incident impacting its VETtrak platform. These factors tempered growth and necessitated focused remediation efforts.
Investment in Growth and Innovation
Expenses increased by 10% to $44.1 million, reflecting ReadyTech’s deliberate investment in capabilities to support future revenue growth. Nearly 30% of revenue was reinvested into research and development, signalling a commitment to innovation and product enhancement.
The company also revised the useful life of certain capitalised software assets, increasing amortisation expense, which impacted profitability but aligns with evolving technology and market conditions.
Risk Factors and Regulatory Environment
ReadyTech’s directors outlined several material risks, including technology disruptions, cybersecurity threats, client retention challenges, and talent acquisition pressures amid a tight labour market. Additionally, the company faces regulatory compliance demands, including emerging climate-related financial disclosure requirements effective from 2028.
Despite these risks, ReadyTech maintains a stable financial position with net assets of $138.8 million and compliance with debt covenants. The company holds $54 million in borrowings secured against assets, with facilities in place to support ongoing operations.
Outlook and Strategic Direction
ReadyTech’s refreshed strategy, branded Clearer, Faster, Stronger, aims to accelerate execution and drive more resilient growth through FY26 and beyond. The company’s growing backlog of opportunities across key markets provides a foundation for optimism, even as it navigates the complexities of market churn and cyber remediation.
No dividends were declared during the period, consistent with a focus on reinvestment and strengthening the business.
Bottom Line?
ReadyTech’s improved half-year result signals a turning point, but ongoing market and operational challenges will test its growth ambitions.
Questions in the middle?
- How will ReadyTech mitigate churn in mature segments and secure contract renewals?
- What is the timeline and impact of remediation efforts following the VETtrak cyber incident?
- How will evolving regulatory and climate disclosure requirements affect ReadyTech’s operations and costs?