StepChange Holdings delivered a robust $15.18 million in unaudited revenue and $1.46 million EBITDA in Q3 2026, driven by organic growth and the BroadReach acquisition. Margin improvements and AI integration highlight its evolving consulting model.
- Q3 revenue of $15.18 million and EBITDA of $1.46 million
- EBITDA margin expands to 9.6% from 8.0% in 1HFY26
- BroadReach acquisition enhances advisory and government reach
- Growth fueled by Tier 1 clients and new energy, government contracts
- AI tools embedded to boost delivery efficiency and scalability
Quarterly Revenue and Margin Expansion
StepChange Holdings (ASX:STH) has reported unaudited quarterly revenue of $15.18 million and EBITDA of $1.46 million for the three months ended 31 March 2026. This represents a steady advance from the first half of FY26, with EBITDA margin improving to 9.6% from 8.0%, underpinned by better utilisation, contractor mix optimisation, and a pivot toward higher-value, outcome-based engagements.
The company’s Managing Director Shane Bransby highlighted that the growth was achieved alongside improved gross and EBITDA margins, reflecting disciplined delivery and a shift in engagement mix. The results underscore StepChange’s ability to convert pipeline opportunities into profitable contracts, particularly within its core SAP migration, cloud transformation, and ICT advisory services.
BroadReach Acquisition Driving Capability and Market Reach
Integral to StepChange’s momentum is the integration of BroadReach Group, acquired late last year. The Perth-based ICT advisory firm has expanded StepChange’s footprint in advisory and government sectors, adding enterprise architecture expertise and deepening client relationships. The acquisition is already contributing to revenue growth and cross-sell opportunities, especially within government and energy sectors.
This development follows the earlier BroadReach acquisition boost, which significantly enhanced StepChange’s consulting capabilities and market positioning. The integration appears to be progressing smoothly, supporting StepChange’s strategy to position itself earlier in the client decision-making cycle.
Operational Efficiency and AI Integration
StepChange is also embedding artificial intelligence tools into its delivery model, aiming to increase consistency and speed without proportionally increasing headcount. This technological adoption is intended to support scalable growth, an important factor as the company pursues expansion in a competitive IT consulting landscape.
The focus on AI complements StepChange’s efforts to optimise utilisation rates and contractor mix, which have been key drivers behind margin expansion. These operational improvements suggest a maturing business model capable of balancing growth with profitability.
Client Base and Contract Wins
Revenue growth was supported by ongoing expansion within existing Tier 1 enterprise clients and new contract wins in the energy and government sectors. The company maintained its consultant base at scale, ensuring delivery capacity to convert pipeline opportunities into revenue. Early cross-sell initiatives post-BroadReach acquisition have also begun to bear fruit, signaling potential for sustained growth.
Bransby’s comments reinforce confidence in the company’s growth trajectory, citing strong demand for SAP, cloud, and ICT advisory services. However, the quarterly results remain unaudited, and the sustainability of new contract wins and the full financial impact of BroadReach integration will be clearer in subsequent audited reports.
Bottom Line?
StepChange’s margin gains and BroadReach integration position it well for scalable growth, but investors should watch for how AI adoption and new contracts translate into sustained profitability.
Questions in the middle?
- Can StepChange sustain margin improvements amid ongoing integration costs?
- How will AI tools impact delivery efficiency and headcount over the next year?
- What is the pipeline visibility for new contracts in government and energy sectors?