Catapult Group International Ltd (ASX:CAT) is a global leader in sports technology solutions for professional teams. They company has over 400 employees operating across 24 locations and they work with more than 4,400 teams in 40 different sports such as NFL, EPL, MLB, NHL, AFL and NCAA.

Catapult was founded in 2006, formed in a partnership between the Australian Institute of Sports and the Cooperative Research Centres. Their wearable technologies are designed to address fundamental questions in sports performance, their services now also include wearable tracking, athlete management and video analysis.

Strong Performance and Growth

Catapult’s FY25 results highlight a strong performance across its core SaaS verticals. The company reported a 19% year-on-year increase in revenue, reaching US$116.5 million. This growth was driven by both the Performance & Health (P&H) and Tactics & Coaching (T&C) verticals.

The P&H vertical, which includes wearables, saw an 18% increase in ACV, while the T&C vertical, inclusive of video solutions, experienced an 18% growth in ACV, with new video solutions ACV growing by an impressive 42%.

The company’s disciplined cost management contributed to a significant expansion in profit margins, with a record high incremental profit margin of 65%. This operational efficiency is reflected in the Rule of 40 SaaS metric, where Catapult achieved a 31% score, a tenfold increase from two years ago.

Over the period there has been moderate changes in the balance sheet’s position, with total assets growing 0.69% to $165.89 million, with the largest increases in Inventories (122.43%) and Property, Plant & Equipment (7.78%), and the largest decreases in Deferred Tax Assets (-28.35%) and Cash & Cash Equivalents (-7.21%).

Total liabilities declined from $86.33 million to $83.97 million (-2.73%) with the most notable decreases in Borrowings (-68.18%), Deferred Tax Liabilities (-47.68%), and Other Financial Liabilities (-25.92%). Total equity increased by 4.46% to $81.92 million.

Record Year of Incremental ACV Growth

Catapult’s ACV growth of 18% year-on-year, normalised for the one-time impact of ceasing operations in Russia, underscores the company’s embeddedness in team workflows. The addition of more than US$15 million of incremental ACV represents the largest increase in the company’s history. Key metrics such as ACV retention at 96% and customer lifetime duration increasing to 7.8 years demonstrate Catapult’s strong market position.

The company continues to expand geographically and within individual sports, signing new deals in soccer across EMEA and Latin America, and experiencing growth in baseball and basketball in North America. The T&C vertical’s growth was driven by strong performance in American football, soccer, and motorsport, supported by the launch of Catapult’s groundbreaking sideline video solution.

Profitability and Cash Flow

Catapult’s disciplined approach to costs resulted in a contribution margin of 49%, up from 46% the previous year. This enabled the company to generate a Management EBITDA of US$14.8 million, an incremental improvement of over US$10 million year-on-year. The company’s focus on cost management also led to a significant increase in Free Cash Flow, which nearly doubled to US$8.6 million in FY25.

The company’s balance sheet was further strengthened during the second half of FY25, with an existing debt balance of US$3.5 million and a net cash position in excess of US$7 million. This financial resilience positions Catapult to continue executing its objective of delivering profitable growth.

Innovation and Product Expansion

Catapult’s commitment to innovation is evident in the development of several new product solutions in FY25. These include the launch of Vector 8, the world’s most powerful athlete monitoring system, and Hub Pro, a next-generation coaching experience integrating new and legacy solutions.

Other innovations include Focus Live for Practice, new algorithms for measuring metabolic power, and live performance insights for enhancing broadcasts and analysis.

Outlook for FY26

Looking ahead to FY26, Catapult remains focused on purposeful innovation and profitable growth. The company expects strong ACV growth, low churn, continued improvement in cost margins, and higher free cash flow.

Catapult’s mission to serve the world’s best athletes and teams with unrivalled technology continues to drive its product development and operational strategies.