Catapult Sports Hits 28% ACV Growth as Profits Surge 50% and Rule of 40 Nears
Catapult Group International (ASX: CAT) has released its Catapult Sports FY26 Trading Update, reporting Annualised Contract Value (ACV) is expected to reach US$133-134M, representing year-on-year growth of 27-28% on a constant currency basis. The sports technology provider remains free cash flow positive with approximately US$50M in cash and no debt, while Management EBITDA is projected to grow by approximately 50% year-on-year.
The trading update, issued on 26 March 2026 ahead of full FY26 results on 20 May 2026, confirms record ACV growth driven by low churn and contributions from the IMPECT and Perch acquisitions. The company operates across more than 5,000 teams in over 40 sports across more than 100 countries, positioning it as the global leader in sports technology solutions for professional teams.
Catapult Sports delivers record ACV growth and surging profitability in FY26 trading update
The Catapult Sports FY26 Trading Update reveals the company expects closing ACV for the twelve months ending 31 March 2026 to be in the range of US$133-134M. This represents reported year-on-year growth of 27-28% on a constant currency basis with low churn, marking a record level of ACV expansion for the business.
Management EBITDA is expected to grow by approximately 50% year-on-year, with the company’s profitability continuing to outpace its strong top-line growth. This performance reflects accelerating operating leverage in Catapult’s business model and continued discipline in managing its fixed and variable cost base.
Free Cash Flow (excluding transaction costs) is expected to be between US$5-6M for FY26. Following the successful capital raise and acquisition of IMPECT, Catapult expects to end FY26 with a cash balance of approximately US$50M and no debt, maintaining a robust balance sheet position.
Balance Sheet Strength
Catapult maintains approximately US$50M in cash with zero debt, providing financial flexibility for continued organic growth and potential further M&A activity.
The trading update confirms the company’s ACV figure includes contributions from the acquisitions of IMPECT and Perch, consistent with Catapult’s track record of strong, durable subscription revenue growth across its global customer base.
When big ASX news breaks, our subscribers know first
What is Annualised Contract Value and why it matters for SaaS investors
Annualised Contract Value (ACV) represents the annualised value of all active subscription contracts in effect, serving as the core measure of recurring revenue health for Software-as-a-Service (SaaS) businesses. For Catapult, ACV is calculated using an average exchange rate to US dollars over a one-month period ending on 31 March 2026.
The company reports ACV on a constant currency basis to strip out foreign exchange fluctuations, providing a cleaner view of underlying business performance. ACV calculated on a “constant currency” basis uses an average exchange rate to US dollars over a one-month period ending on 31 March 2025, enabling like-for-like comparison.
Catapult’s ACV growth of 27-28% with low churn demonstrates the company is not just winning new customers but retaining and expanding existing relationships. This combination indicates strong customer retention and expansion, the hallmark of a high-quality subscription business.
The company’s business model spans more than 5,000 teams across over 40 sports in more than 100 countries, creating diversified, sticky revenue streams. This global footprint reduces concentration risk and provides multiple growth vectors across different sports and geographies.
Rule of 40 metric signals operating leverage acceleration
The Rule of 40 is a SaaS benchmark where revenue growth percentage plus EBITDA margin percentage should exceed 40%, serving as a key indicator of business quality and sustainability. Companies achieving or exceeding this threshold demonstrate they are successfully balancing growth investment with profitability.
Catapult achieved 33% on this metric in 1H FY26, representing a company record, and expects the FY26 full-year result to improve on this performance. With ACV growth of 27-28% and Management EBITDA growing approximately 50%, the company is closing in on the 40% threshold that typically attracts institutional investor interest.
The company expects its FY26 Rule of 40 metric to improve on the record 33% achieved in 1H FY26, as Management EBITDA continues to expand. This trajectory signals Catapult is transitioning from growth-phase investment to profitable scale, where the business generates strong revenue growth while simultaneously expanding margins.
Understanding Rule of 40
Formula: ACV Growth % + Management EBITDA Margin % = Rule of 40 Score
A score above 40% indicates a SaaS company is successfully balancing growth and profitability.
The expected performance reflects accelerating operating leverage in Catapult’s business model, where incremental revenue growth requires proportionally less incremental cost. This dynamic is particularly evident in the approximately 50% year-on-year Management EBITDA growth significantly outpacing the 27-28% ACV growth.
Acquisitions integrated, balance sheet strengthened
The integration of two acquisitions (IMPECT and Perch) within FY26 placed temporary capacity pressure on Catapult’s finance and collections function. As a result, a portion of 2H FY26 receivables that would have ordinarily been collected before 31 March 2026 is expected to be received in early 1H FY27.
This timing impact results in a materially higher closing accounts receivable balance relative to 31 March 2025. The company expects FY26 Free Cash Flow (excluding transaction costs) to be between US$5-6M, with the receivables timing representing a one-off integration effect rather than a structural issue.
Despite the temporary collections timing impact, Catapult maintains a robust balance sheet position. The company expects to end FY26 with a cash balance of approximately US$50M and no debt, following the successful capital raise and acquisition of IMPECT completed during the financial year.
The debt-free balance sheet with US$50M in cash provides financial flexibility for continued organic growth investment and potential further mergers and acquisitions. The ACV figure of US$133-134M includes contributions from both IMPECT and Perch, demonstrating successful integration of these acquisitions into the core business.
Key metrics at a glance
| Metric | FY26 Expected | YoY Change |
|---|---|---|
| ACV | US$133-134M | +27-28% (CC) |
| Management EBITDA | — | +~50% |
| Free Cash Flow (ex-transaction costs) | US$5-6M | — |
| Cash Balance | ~US$50M | — |
| Debt | Nil | — |
| Rule of 40 (1H FY26) | 33% | Record |
The metrics demonstrate Catapult’s strong operational performance across multiple dimensions. Management EBITDA is a non-IFRS measure of operating profitability, calculated as Reported EBITDA excluding employee-related share-based payments, acquisition contingent consideration, severance, acquisition-related transaction costs, and payroll tax expense related to employee-related share-based payments, and including capitalised development expenditure.
The next major ASX story will hit our subscribers first
What to watch at the May 20 results
Catapult expects to announce its FY26 results on 20 May 2026, with details to be lodged with ASX in due course. The pre-announcement of strong trading metrics suggests management confidence in the full-year outcome and provides visibility on the company’s operational trajectory.
Key items investors should monitor at the 20 May 2026 results announcement include:
- Final ACV figure: Whether the company lands at the top or bottom of the US$133-134M guidance range
- Management EBITDA margin: The actual margin achieved and reconciliation to statutory EBITDA
- Rule of 40 outcome: The full-year result and whether it exceeds the 1H FY26 record of 33%
- Receivables normalisation: Commentary on the expected timing of receivables collection in 1H FY27
- FY27 guidance: Forward outlook for ACV growth, profitability trajectory, and strategic priorities
The trading update frames the 20 May 2026 results positively, with record ACV growth of 27-28%, Management EBITDA expansion of approximately 50%, and a strengthened balance sheet position. The temporary receivables timing impact from acquisition integration is offset by strong underlying cash generation and the company’s debt-free status with approximately US$50M in cash.
Want the Next Sports Tech Winner in Your Inbox?
Join 20,000+ investors getting FREE breaking ASX news delivered within minutes of release, complete with in-depth analysis. Click the “Free Alerts” button at StockWire X to receive real-time alerts the moment market-moving announcements hit the ASX across Tech, Healthcare, Finance, and more.