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Shares in sports technology company Catapult Sports (ASX: CAT) have plummeted as much as 16 per cent today amid a broader sell-off for the ASX despite posting a strong FY26 first-half performance led by a 19 per cent increase in annualised contract value to US$115.8 million ($175 million).
Catapult, a major player in wearable tracking technology and analytics solutions for the global sports performance market, posted a 16.9 per cent increase in revenue to US$67.6 million ($104.3 million) for the six months to the end of September, helping boost EBITDA by 8.4 per cent to US$9.05 million ($14 million).
The Catapult result was aided by the acquisition of US-based athlete monitoring company Perch in June, but an increase in depreciation and amortisation expenses led to a 16 per cent widening of the bottom-line loss to US$8.6 million ($13.3 million).
Catapult’s preferred measure of profitability, Management EBITDA, was up 56 per cent over the past year to US$9.7 million ($15 million), a result that CEO Will Lopes says was aided by a new record high of 33 per cent in the company’s Rule of 40 metric which he says is a “benchmark of health and momentum for any SaaS (software-as-a-service) company”.
“Catapult delivered another strong performance through what is traditionally our peak sales season,” says Lopes.
“Our annualised contract value – the truest signal of long-term growth in a recurring revenue business – rose 19 per cent year-on-year, fuelled by the continued strength of our core SaaS verticals.
“Performance & Health remains a model of reliability and scale, while Tactics & Coaching continues to extend our reach into more teams around the world.
“This growth, paired with disciplined cost management, continues to translate into meaningful operating leverage.”
Catapult’s wearable tracking technology and analytics solutions are used by more than 5,000 teams globally, up from 4,491 six months ago.
The company is also considered a market leader in providing innovative digital and video analytic software solutions to elite sports teams globally.
“I’m deeply proud of the progress we’ve made this half,” says Lopes.
“The acquisition of Perch expanded our Performance & Health ecosystem, uniting data from on-field performance and off-field strength environments.
“More recently, the addition of IMPECT – the global leader in soccer scouting analytics – further strengthens our position as the most comprehensive and connected platform in pro sport.”
Catapult last month announced it was boosting the scouting capabilities of its business through a $139 million acquisition of Germany’s IMPECT GmbH, the operator of a soccer intelligence platform that provides insights on player performance and team dynamics.
“Catapult’s story has always been one of connection – between data and decision,” says Lopes.
“Each step we take deepens that promise. And as we look ahead, I’m excited by the opportunity to build an even richer experience for our customers and for the sports that inspire us all.”
CFO Bob Cruickshank says Catapult Sports began FY26 just as the company finished FY25, with “strong, profitable growth”.
“Our financial position, whether it be our operating profit, cash flow, or balance sheet, ended the half year period in a very healthy state,” he says.
“Catapult’s key SaaS metrics continue to exhibit the profile of a world-class subscription business model, reflecting our industry leadership position and the ability to sustain our future growth.”
Cruickshank says the company has executed discipline in managing costs while delivering “substantial growth”.
“It is something we have worked hard to instil into our culture at Catapult.
“Our people work together to maintain this discipline, enabling us to deliver the excellent contribution margins and incremental profit margins we have reported today.
“With US$90 million ($139 million) of net new proceeds added to the balance sheet following the placement and share purchase plan in relation to IMPECT, after we closed the first half, we have an even stronger balance sheet, no debt, and an unwavering commitment to continue driving cost margins down towards our targets, consistent with our Rule of 40 focus.”
Despite the strong half-year result, Catapult Sports shares were trading 13.7 per cent lower at $4.71 by 3.34pm (AEDT).
The share slide reflects a broader sell-off across the ASX in the wake of profit-taking in US markets overnight.
Among the large-caps, TechnologyOne has been the worst performer today despite the company posting another record full-year result.
Catapult Sports has been the worst performer in the mid-cap sector today, followed by Superloop (ASX: SLC) which fell 11 per cent to $2.43.
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