StepChange Holdings Limited reports a strong half-year performance post-IPO, with $24.36 million in revenue and a net profit of $524,400, underpinned by key acquisitions and US expansion.
- First half-year results following ASX listing and acquisition
- Revenue of $24.36 million and underlying EBITDA of $1.95 million
- Net profit after tax of $524,400
- Established US subsidiary and completed BroadReach Group acquisition
- Strong balance sheet with $22.43 million net assets and no drawn borrowings
A Promising Debut on the ASX
StepChange Holdings Limited has unveiled its inaugural half-year financial results since its July 2025 listing on the Australian Securities Exchange (ASX). The company reported revenues of $24.36 million and a net profit after tax of $524,400 for the six months ending 31 December 2025. This performance marks a significant milestone, reflecting the successful integration of its acquisition of StepChange Consultants Pty Ltd and the benefits of its new corporate structure.
Growth Fueled by Strategic Acquisitions and Expansion
The half-year period saw StepChange leverage its expanded capabilities to capture strong client demand, particularly in the mining, energy, and government sectors. The company’s underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) reached $1.95 million, signalling operational efficiency amid growth. Notably, StepChange established a US-based subsidiary, StepChange Consulting USA LLC, positioning itself for international market opportunities.
Further bolstering its growth trajectory, StepChange completed the acquisition of BroadReach Group Pty Ltd in January 2026. BroadReach, a specialist in ICT advisory services, complements StepChange’s existing offerings and broadens its footprint in enterprise architecture and ICT strategy.
Financial Position and Capital Structure
StepChange’s balance sheet remains robust, with net assets of $22.43 million and no borrowings drawn under its $11 million credit facilities with Westpac Banking Corporation. The company’s issued capital rose significantly during the period, reflecting successful capital raises associated with its IPO and acquisition activities. Share-based payments and contingent consideration linked to acquisitions are notable components of the company’s financials, reflecting alignment of management incentives and future performance milestones.
Outlook and Market Implications
While no dividends were declared during the period, StepChange’s strategic moves suggest a focus on reinvestment and scaling. The company’s expansion into the US market and acquisition of BroadReach signal ambitions to diversify revenue streams and deepen expertise. Investors will be watching closely how these initiatives translate into sustained revenue growth and profitability in coming periods.
Bottom Line?
StepChange’s strong start post-IPO and strategic acquisitions set the stage for accelerated growth, but integration and execution risks remain key watchpoints.
Questions in the middle?
- How will the integration of BroadReach Group impact StepChange’s financial performance in FY2026?
- What are the growth prospects and client acquisition strategies for StepChange Consulting USA LLC?
- How will contingent consideration payments affect future cash flows and shareholder returns?