Catapult’s Net Loss Widens to US$24M Despite Strong EBITDA Growth

Robust Subscription Growth Drives Revenue and Profit

Catapult Sports Ltd (ASX:CAT) has reported a record financial year ended March 31, 2026, with revenue climbing 20.8% year-on-year to US$140.7 million. This growth was fuelled by a 28% increase in Annualized Contract Value (ACV) on a constant currency basis, reaching US$133.8 million, which includes contributions from recent acquisitions Perch and IMPECT. Excluding acquired ACV, organic growth remained strong at 18%. The company added 460 new Performance & Health customers and 576 new Pro Teams, while average ACV per Pro Team exceeded US$30,000 for the first time, highlighting successful expansion and cross-selling efforts within its SaaS platform.

Management EBITDA soared 67% to a record US$24.7 million, lifting the margin from 13% to 18%. This improvement reflects disciplined cost management and operational leverage as Catapult scales its platform. Contribution margin rose to 53%, supported by efficiencies in variable costs despite increased fixed costs related to acquisitions and R&D investment. Free cash flow excluding transaction costs was US$6.5 million, slightly above guidance, though impacted by timing delays in receivables, which more than doubled to US$20.1 million by year-end. The company’s cash balance strengthened significantly to US$53.5 million, with no debt on the books.

Strategic Acquisitions Expand Platform and Market Reach

Catapult’s FY26 performance was underpinned by the integration of Perch and IMPECT, acquired in June and October 2025 respectively. Perch, a gym performance monitoring system leveraging advanced computer vision and AI, contributed US$3.4 million in revenue and US$0.5 million in profit since acquisition. IMPECT, a soccer-focused analytics platform, added US$4.9 million in revenue and US$1.7 million in profit, significantly boosting the Tactics & Coaching vertical, which grew ACV 40% constant currency year-on-year. These acquisitions have broadened Catapult’s product ecosystem, enabling unified workflows that combine athlete monitoring, video analysis, and scouting intelligence, a capability the company highlights as unique in the market.

Goodwill arising from these acquisitions totalled US$59.6 million, reflecting expected synergies and the value of acquired intellectual property and skilled personnel. Deferred and contingent consideration liabilities related to these deals amount to over US$20 million, subject to performance milestones. Acquisition-related charges of US$7.6 million, largely non-cash, weighed on statutory EBITDA and net profit figures.

Net Loss Widens Amid Non-Cash and Acquisition Costs

Despite the strong operating performance, Catapult reported a statutory net loss after tax of US$24 million, compared to US$8.8 million the previous year. This deterioration primarily reflects non-cash expenses including share-based payments, amortization of acquired intangibles, and acquisition-related charges. Excluding these items and foreign exchange impacts, underlying net profit improved by nearly 20% year-on-year.

The company’s share-based payment expense nearly doubled to US$26.1 million, driven by the significant increase in Catapult’s share price, affecting the accounting treatment of executive and employee equity incentives. Management EBITDA, which excludes these non-cash items, provides a clearer picture of operational profitability and improved 67% year-on-year.

Market Position and Growth Strategy

Catapult continues to lead the professional sports technology market, serving more than 5,500 teams across 40 sports in over 100 countries. Its platform spans three main verticals: Performance & Health (wearable tracking and gym monitoring), Tactics & Coaching (video and scouting analysis), and Media & Engagement. The company’s strategy focuses on expanding ACV through land-and-expand sales, cross-selling multiple solutions within verticals, and leveraging AI-powered analytics such as the recently launched AI Insights and Focus Live products.

Looking ahead, Catapult expects sustained strong ACV growth with low churn, ongoing margin improvement, and higher free cash flow in FY27. CEO Will Lopes emphasised the company’s confidence in its expanded platform to deliver capabilities previously unavailable to pro sports teams, positioning Catapult as a global SaaS leader in sports technology.

Catapult’s FY26 results build on earlier momentum, including its record ACV growth and EBITDA surge reported at the half-year mark, confirming the company’s trajectory towards its Rule of 40 profitability and growth target Catapult Sports Accelerates ACV Growth. The integration of Perch and IMPECT acquisitions, announced mid-year, has been pivotal in broadening Catapult’s product suite and customer base Catapult Surges with Record SaaS Growth. However, the widening net loss highlights the accounting impact of non-cash charges and the ongoing costs of scaling through acquisitions.