Catapult Projects 28% ACV Growth and $5–6M Free Cash Flow in FY26
Catapult Sports projects record Annualized Contract Value growth of up to 28% and a 50% jump in Management EBITDA for FY26, underpinned by strategic acquisitions and strong subscription revenue.
- ACV expected to reach US$133–134 million, up 27–28% year-on-year
- Management EBITDA forecast to grow approximately 50% in FY26
- Positive free cash flow of US$5–6 million despite timing delays in receivables
- Cash balance projected at around US$50 million with no debt at year-end
- Rule of 40 metric expected to improve beyond 33% recorded in 1H FY26
Record ACV Growth Driven by Acquisitions and Subscription Strength
Catapult Sports Ltd (ASX:CAT), a global leader in sports technology solutions, has released a trading update for the fiscal year ending March 31, 2026, forecasting a landmark year for its subscription business. The company anticipates its Annualized Contract Value (ACV) to close between US$133 million and US$134 million, representing a robust 27–28% growth on a constant currency basis. This surge is partly fueled by the recent acquisitions of IMPECT and Perch, which have bolstered Catapult’s portfolio and client base.
Strong Profitability Gains Amid Operational Integration
Alongside top-line growth, Catapult expects Management EBITDA, a key measure of operating profitability, to increase by approximately 50% year-on-year. This impressive expansion reflects the company’s effective operating leverage and disciplined cost management, enabling profitability to outpace revenue growth. The company also highlighted an improvement in its Rule of 40 metric, a combined indicator of growth and profitability, which is set to surpass the 33% achieved in the first half of FY26.
Cash Flow and Balance Sheet Strength
Despite temporary pressures on finance and collections functions due to integrating acquisitions, Catapult expects to generate positive free cash flow of between US$5 million and US$6 million for FY26. The timing of receivables collections has shifted, with some expected cash inflows deferred into the first half of FY27, resulting in a higher accounts receivable balance at year-end compared to the previous year. Nevertheless, the company anticipates ending FY26 with a strong cash position of approximately US$50 million and no debt, providing a solid foundation for future growth.
Looking Ahead
Catapult plans to release its full FY26 results on May 20, 2026, which will provide a detailed breakdown of financial performance and further insights into the impact of its recent acquisitions. The company’s continued focus on subscription revenue growth and operational efficiency positions it well to capitalize on the expanding global demand for sports performance analytics.
Bottom Line?
Catapult’s FY26 update signals accelerating growth and profitability, but investors will watch closely for how acquisition integration unfolds in the full results.
Questions in the middle?
- How will Catapult’s acquisitions of IMPECT and Perch contribute to long-term revenue and margin expansion?
- What impact will the timing shift in receivables collections have on FY27 cash flow and working capital management?
- Can Catapult sustain its accelerated ACV growth amid increasing competition in sports technology?
