StepChange delivers 31% revenue growth to $55.6m in FY26 results presentation
In its FY26 full-year results presentation released 28 August 2026, StepChange Holding (ASX:STH) reported revenue of $55.6m, up 31% versus pro-forma FY25, alongside Underlying EBITDA of $5.01m (+57% versus pro-forma FY25). All growth comparisons throughout the presentation measure actual FY26 against pro-forma FY25 financial results.
StepChange is a Perth-based technology advisory and delivery consultancy serving blue-chip clients including BHP, Woodside Energy, INPEX, WA Police, and the Government of Western Australia.
The results also showed gross profit of $7.93m (+40% versus pro-forma FY25), cash at bank of $5.2m at 30 June 2026, and a headcount exceeding 200.
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FY26 financial performance headline numbers
Management highlighted that Underlying EBITDA growth of 57% outpaced revenue growth of 31% (both versus pro-forma FY25), driven by higher-margin engagements and disciplined contractor utilisation. Gross margin expanded to 14.3%, up 1.1 points from 13.2%.
The pattern of EBITDA growth outpacing revenue was already visible in StepChange’s maiden half-year results, where a 50% EBITDA increase on 19% revenue growth demonstrated early operating leverage, alongside a 10% share buy-back that signalled management confidence in the capital position.
The presentation also flagged operating cash conversion exceeding 100% of Normalised NPAT, underscoring the cash-generative nature of the business.
| Metric | Actual FY26 | Pro-forma FY25 | Change |
|---|---|---|---|
| Revenue | $55,572k | $42,532k | +31% |
| Gross profit | $7,887k | $5,620k | +40% |
| Underlying EBITDA | $5,007k | $3,196k | +57% |
| Gross margin | 14.3% | 13.2% | +1.1pts |
Statutory vs underlying — reading the numbers
The presentation detailed the gap between statutory and underlying figures. Underlying EBITDA of $5.01m adds back one-off costs to statutory EBITDA of $3,523k, while Statutory NPAT was ($563k) and Normalised NPAT was $2,537k after $3,100k of non-cash Business Combination Adjustments. Normalised EPS was $0.015.
The key add-backs comprised:
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Listing Costs $1,231k — one-off ASX listing costs, not an ongoing expense.
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M&A $253k — legal and due diligence costs relating to the BroadReach acquisition.
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Business Combination Adjustments $3,100k — non-cash acquisition accounting, including recognition of customer assets, discounting of deferred vendor payments, and write-down of acquisition-related intangibles.
Management emphasised these are non-cash accounting adjustments tied to the acquisition rather than operational weakness, noting the underlying business continues to perform strongly and generate cash flow.
The BroadReach acquisition and delivery scale
The presentation outlined the completion of the BroadReach acquisition, which began contributing to Group revenue and delivery capacity from January 2026 and was described as exceeding expectations. The integration lifted consultant numbers past 200 and added upstream enterprise architecture capability.
Management also noted two experienced senior hires joined from a Global SI and a Tier 1 energy company. Against the presentation’s scorecard, all stated FY26 objectives were marked as Achieved.
The appointment was flagged in StepChange’s FY26 revenue guidance update in June 2026, which also confirmed the $55M-plus revenue trajectory and noted Todesco’s track record leading enterprise digital integrations that generated over US$75M in annual synergy savings at Woodside Energy.
Scorecard highlight
Attracting senior talent from credible firms. Two experienced hires joined from a Global SI and a Tier 1 energy company, proof that a quality business attracts quality people, not the other way around.
What technology advisory means for investors
A technology advisory and implementation consultancy advises clients before major technology spend, then delivers alongside their teams (including alongside global systems integrators), and helps them evolve their technology over time. StepChange frames this as an “advise, deliver, advance” model.
Balance sheet strength to fund further growth
The results revealed a transformed balance sheet. Net assets rose to $22.1m, up from $1.2m in pro-forma FY25, while cash climbed to $5.2m from $386k.
Three balance-sheet drivers were highlighted:
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Cash position — cash at bank of $5.2m (FY25: $386k), supporting a strong working capital position following listing.
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Acquisition facility — a $10m Westpac acquisition facility secured to fund the deferred vendor payments (DVP) for StepChange and BroadReach, with capacity for future M&A built in.
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M&A capacity — balance sheet headroom to pursue further selective, accretive acquisitions without straining liquidity.
The presentation also flagged $6.6m in Deferred Consideration Payable relating to the StepChange and BroadReach earn-out in 2026. Management indicated it remains open to selective, accretive acquisitions.
AI capability: proof, not promise
The presentation outlined an AI roadmap built over the past 12 months, moving from pilot projects to a repeatable, governed delivery method. Management presented validated case study metrics, which are sample client engagements rather than company-wide financials.
Case study highlights included:
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StepChange Roadmap to AI — 25% potential efficiency improvements identified, backed by 100+ reusable methods across 40 business functions.
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Cyber Security (PAM) — a 200-page cyber business case scoped in under 4 hours (versus 3–5 days), with 14 hidden requirements found and zero missed.
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AI-Assisted Data Engineering — roughly 60% faster build and debug cycles, 4 reusable team tools shipped, with zero extra headcount.
StepChange positions itself as delivering against 4 of the 10 AI service categories identified in the presentation: Strategy & Advisory, Design & Build, Agent Services, and Security & Governance.
The market backdrop management is targeting
Management framed a large and structurally growing addressable market. Australia’s IT services market is projected to grow from $38bn to $91bn by 2031, more than doubling in five years, while the global AI-services market is forecast to reach $347bn by 2031 at a 32.5% CAGR.
The presentation noted Perth is the fastest-growing metro IT market in the country. Australia’s Science and Technology sector recorded 7% annual growth, while national job advertisements eased 4.5% year-on-year.
As a market validation point, the presentation cited BHP, a StepChange client, targeting $650m per year in productivity from technology in FY27, up from a $470m exit run-rate, according to BHP’s own figures (source: BHP Financial Results, 18 August 2026).
FY27 outlook and what investors should watch
Looking ahead, the presentation set out the following outlook. BroadReach is expected to deliver a full-year contribution in FY27, compared with an H2-only contribution in FY26, while continued strong organic growth is expected from StepChange Consultants.
Management noted margin improvement strategies are in place, with a strategic shift toward outcome-based delivery planned for FY27. On earnings, management targets double-digit growth on a normalised basis for EBITDA, alongside EPS growth through disciplined capital management.
The company summarised its positioning as: “We advise before you spend, deliver alongside you, and keep your business evolving with technology.”
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