Stepchange Holdings Ltd Posts FY26 Revenue of $55.6M as EBITDA Rises 57%

Maiden full-year result beats Prospectus as revenue climbs 31%

StepChange Holdings (ASX: STH) delivered its maiden full-year result as a listed company for the financial year ended 30 June 2026, exceeding the forecasts set out in its IPO Prospectus.

The specialist SAP and digital transformation consultancy reported revenue of $55.6M, up 31% on Pro-forma FY25, alongside Underlying EBITDA of $5.01M, up 57% and ahead of Prospectus forecast. The year also brought two structural milestones: the completion and integration of the BroadReach Group acquisition, and the establishment of a US operating platform.

FY26 financial results at a glance

The headline result reflects both a beat against Prospectus forecasts and meaningful margin expansion. The table below summarises the key metrics for the period.

The normalised NPAT figure of $2.537M excludes non-deductible accounting adjustments of $3.1M relating to business combinations during the period. On a statutory basis, the Group recorded a net loss of $563,000, reflecting those non-cash adjustments alongside the one-off costs associated with listing and acquisition activity.

A year of scale: BroadReach and a US launchpad

Following its ASX listing in July 2025, StepChange executed against the strategy set out at IPO, pursuing disciplined organic growth, selective acquisitions and investment in high-value consulting capability. Two strategic moves defined the year.

The H1 FY26 debut results reported revenue of $24.4M alongside a 50% EBITDA increase, with the BroadReach acquisition completing during that period and the $10M acquisition facility still largely undrawn heading into the second half.

• BroadReach Group acquisition completed and integrated, contributing to Group earnings from January 2026, expanding capability in enterprise architecture, ICT strategy and government consulting, and creating cross-selling opportunities across the combined client base

• US operations established, creating a platform to serve multinational clients and participate in one of the world’s largest enterprise technology markets

• Organic growth remained strong, with new Tier 1 enterprise and government clients secured and continued demand across SAP transformation, cloud migration and ICT advisory

Following the BroadReach integration, headcount passed 200 consultants and specialists, broadening the Group’s delivery capacity across both organic and acquired capability.

Balance sheet strength underpins the growth story

The Group ended the period with a materially stronger financial position, providing a base for future acquisitions and organic investment.

• Net assets of $22.12M, up from $1.2M Pro-forma FY25

• Cash at bank of $5.2M

• An $11M undrawn Westpac facility

AI-led delivery: proof, not promise

During FY26, StepChange embedded AI capability into its consulting methodology, developing more than 100 reusable methods across 40 business functions and running client demonstrations to validate the approach in the field. Three client case studies were completed, spanning critical infrastructure and government.

1. For a major Australian critical infrastructure client, an AI agent deployed with StepChange’s Scope Development Method turned a 200-page cyber security business case into a governance-ready project scope in under 4 hours, work that previously took 3 to 5 days, with full traceability back to source and 14 previously overlooked requirements identified

2. In an AI-assisted data engineering engagement, build and debug cycles were cut by roughly 60%, with defects caught earlier and rework falling across the team

These results position AI as a validated, in-field component of delivery rather than a forward-looking promise.

What SAP and digital transformation consulting means for investors

StepChange operates as a specialist consultancy helping large organisations plan, migrate and modernise their core technology systems. Demand for SAP migration, cloud transformation and ICT advisory remains strong.

The road ahead: positioned for FY27

The Board remains optimistic about the Company’s prospects heading into FY27, citing supportive market forecasts across its core segments.

• Australia’s IT services market is forecast to more than double, from $38B to $91B, between 2026 and 2031

• The global AI-services market is forecast to reach $347B by 2031, growing at more than three times the projected rate of cybersecurity and managed services

• StepChange already provides services in 4 of the 10 service categories that make up the AI-services market

These figures are market forecasts rather than company guarantees. The Group enters FY27 with a full-year contribution from BroadReach alongside expected strong organic growth from StepChange Consultants.

Heading into FY27, the new COO appointment brings former Woodside Energy CIO Pino Todesco into the operating leadership team, adding direct experience from enterprise digital integrations that generated over US$75M in annual synergy savings.

Shane Bransby, Managing Director

“FY26 was the year we proved out the strategy we took to market at IPO. We beat the numbers we set ourselves, brought BroadReach into the business and got it contributing inside two quarters, and incorporated a US entity from a standing start. That doesn’t happen without the calibre of people we’ve built around the business. We’re going into FY27 with a full year contribution from BroadReach along with expected strong organic growth out of StepChange Consultants providing a solid platform for growth.”

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