Catapult Sports (CAT) H1 2025 earnings summary

Executive summary

• Achieved record profitable growth in 1H FY25, with revenue up 19% year-over-year to $57.8M, strong SaaS momentum, and operational efficiencies.

• Free cash flow for H1 FY25 was $4.8M, surpassing the full FY24 total and up from $1.4M in the prior year period.

• ACV grew 20% year-over-year to $96.8M, with recurring revenue exceeding $50M for the first time in a half-year.

• ACV retention remained high at 96.2%, churn below 5%, and customer lifetime duration increased to 7.6 years.

• Multi-vertical pro teams rose 80% year-over-year, supporting cross-sell and product expansion.

Financial highlights

• Revenue reached $57.8M (up 19% YoY); gross margin was 79.1%, with gross profit at $45.8M.

• Management EBITDA rose to $6.2M, a significant year-over-year improvement; EBITDA reached $8.4M.

• Free cash flow was $4.8M, with operating cash flow at $20.3M.

• Contribution margin improved to 48% (from 44% YoY); incremental profit margin reached 75%.

• Variable costs as % of revenue declined to 52%; fixed costs as % of revenue dropped to 37%.

Outlook and guidance

• Expect continued strong ACV growth, low churn, improved cost margins, and higher free cash flow for FY25.

• Confident in achieving long-term targets for contribution margin (55%) and profit margin (30%).

• Rule of 40 benchmark reached 31% at half-year, with further improvement targeted.

• Directors believe the company is well positioned for the next 12 months, with sufficient liquidity and working capital.