AUS
NZ
UK
CA
USA
IND
Highlights
- Catapult (CAT) jumps over 11% after upbeat FY25 revenue growth
- Annualised contract value climbs 16%, driven by stronger customer retention
- Wearables and video segments boost operating efficiency and long-term outlook
Catapult Group International (ASX:CAT), a global provider of sports technology and performance analytics, posted a strong set of full-year results, sending its share price soaring more than 11% on Wednesday. The company’s latest earnings update points to expanding revenue streams, improved cost efficiency, and growing demand for its solutions across elite sports teams.
In the fiscal year ended March 2025, Catapult reported a 19% lift in revenue to US$116 million (approx. A$180 million), reflecting robust adoption of its wearable tech and video analytics platforms. The company also narrowed its net loss after tax significantly, from US$19.1 million last year to US$8.56 million, a marked improvement in financial performance.
The upbeat results drove Catapult’s share price to $4.74, up 10.2% by midday AEST, giving it a market capitalisation of around A$1.3 billion. Notably, this surge pushes the stock above its previous all-time high of $4.06 set in 2016.
Catapult’s success is underpinned by its strong global client base of 3,600 professional sports teams. Key financial metrics support the growth narrative—annualised contract value (ACV) increased by 16% to US$101 million, while the average contract length rose to 7.8 years, up 11.4%. These metrics point to deeper customer engagement and a long-term revenue outlook.
The company’s flagship segment, "Performance & Health," brought in US$66 million in revenue. This division includes wearable devices used to track player movement and biometrics. Meanwhile, the video solutions unit generated US$32.6 million—a 42% year-over-year increase—as coaching teams increasingly turn to data-driven insights.
With fixed costs holding steady at approximately US$42 million annually, and variable costs growing at a slower rate than revenue, Catapult reported a 65% incremental profit margin on new revenue. This suggests the company is well-positioned to scale efficiently.
CEO Will Lopes noted the company's performance reflects the success of its long-term strategy: “Our ACV—a core indicator of our growth—rose 18% year-on-year. We retained 65 cents for every new dollar generated. This is what sustainable operating leverage looks like.”
Catapult’s growth adds an interesting dynamic to the broader ASX200 index, where technology firms are increasingly influencing market sentiment.
For income-focused investors exploring the intersection of growth and stability, Catapult’s evolving profile might resonate alongside other potential ASX dividend stocks.
