It has been a tough period for ASX growth shares.
Many growth shares, especially those in the technology sector, have been hit hard over the past 12 months as investors rotate into other areas of the market.
As disappointing as this may be, history shows that the bulls will eventually return.
Two ASX growth shares that I would want to own when that happens are in this article. Here's why I think they could boom when sentiment improves.
Catapult Sports Ltd (ASX: CAT)
Catapult is a business that looks far stronger today than it did a few years ago, even if the share price does not always reflect that. The company provides performance analytics and wearable technology to elite sports teams around the world, and its software has become deeply embedded in professional sporting programs.
What stands out to me is how much the business has matured. Revenue is increasingly recurring, customer churn is low, and management has shifted the focus from growth at any cost to disciplined execution and profitability. That transition matters. It means incremental revenue growth now has a much greater impact on margins and cash flow.
As professional sport continues to invest in data-driven decision making, Catapult sits in a niche with high barriers to entry and global scale. If investor sentiment toward ASX growth shares improves, I think Catapult has the foundations in place to be re-rated as a more durable, profitable business rather than a speculative one.
Life360 Inc (ASX: 360)
Life360 operates a consumer technology platform that many families rely on every day, even if it does not always attract the same attention as larger tech names. Its location-based services help families stay connected and safe, and that utility has translated into strong engagement and retention.
The company's growth story is increasingly about monetisation rather than user acquisition alone. As its installed base nears 100 million monthly active users, Life360 has more opportunities to lift average revenue per user through subscriptions and value-added features. That creates operating leverage over time, which is something the market tends to reward.
I also like the global nature of the opportunity. Life360 is not limited to one geography, and its product has proven to be highly scalable. If risk appetite returns to ASX growth shares, businesses with a large addressable market and improving unit economics are often among the first to benefit.
Foolish Takeaway
Trying to time the exact bottom in any stock or pocket of the market is almost impossible. What matters more is recognising when the conditions are falling into place for the next leg of growth. Catapult and Life360 are both showing signs of operational progress beneath the surface.
If the bulls start to come back, these are two ASX growth shares I would want to own early rather than chase later.
