Catapult Sports Ltd (ASX: CAT) shares are jumping on Wednesday.
In morning trade, the ASX 300 tech stock is up 18% to $3.41.
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ASX 300 tech stock jumps on results
Investors have been bidding the sports technology company's shares higher today following the release of a strong full-year result.
According to the release, Catapult's annualised contract value increased 28% in constant currency to US$133.8 million in FY 2026.
Excluding acquired ACV from Perch and IMPECT, ACV increased 18%, which management said was also a record level of incremental ACV growth.
Revenue increased 19% in constant currency to a record US$140.7 million. This was driven by SaaS revenue of US$118.6 million, which was up 21% in constant currency. SaaS and other recurring revenue now represents 95% of total revenue, highlighting the recurring nature of the ASX 300 stock's business model.
In Performance and Health, ACV increased 23% in constant currency, supported by geographic expansion, growth in soccer across EMEA and Central America, and continued traction in North American college sports.
In Tactics and Coaching, ACV rose 40%, with the acquisition of IMPECT a key contributor alongside continued growth in the Pro Video Suite.
Catapult added 576 new professional teams during the year, while average ACV per professional team increased 10% in constant currency to more than US$30,000 for the first time. Retention also increased to more than 96%.
As for earnings, the ASX 300 tech stock revealed that management EBITDA increased 67% to US$24.7 million, reflecting strong revenue growth and disciplined cost management.
Its contribution margin increased to 53% from 49%, while the operating profit margin expanded to 18% from 13%.
How does this compare to expectations?
The result appears to have beaten expectations across several key measures.
Bell Potter had forecast management EBITDA of US$23 million, while noting consensus appeared to be closer to US$22.4 million. Catapult delivered US$24.7 million, which was ahead of both.
The broker was also looking for ACV of US$133.6 million, compared with the actual result of US$133.8 million.
Free cash flow excluding transaction costs also came in ahead of Bell Potter's estimate at US$6.5 million.
Management commentary
The ASX 300 tech stock's CEO, Will Lopes, appeared to be pleased with the year. He said:
FY26 was a transformational year for Catapult. We set ourselves ambitious targets: maintain our organic growth rate, reinvest meaningfully in our platform, and stay focused through a period of significant M&A. We delivered on all of them. These results reflect the efforts of every person at this company, and to the world-class sports teams who trust us with their performance every day.
What I am most proud of is how we achieved it. Disciplined cost management, combined with strong top-line growth, drove our Rule of 40 to a record high, clear evidence that our operating model is scaling the way we designed it to.
Outlook
Looking ahead, Catapult expects strong ACV growth, low churn, continued margin improvement, and higher free cash flow in FY 2027. Lopes said:
At Catapult, our compass remains fixed: be an invaluable partner to our customers, and deliver strong, profitable growth. As we enter FY27, we expect strong ACV growth, low churn, continued margin improvement towards our targets, and higher free cash flow, all consistent with our Rule of 40 focus.
