In Brief: Catapult Sports, Hazer Group & ResMed

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This week's In Brief's focuses on Catapult's SaaS growth, Hazer's clean hydrogen milestones and ResMed's portfolio repositioning through acquisitions and divestments.

• Catapult targets profitability as sports analytics market expands
• Hazer advances hydrogen projects and global licensing strategy
• ResMed bets on neuromodulation to strengthen its sleep care portfolio

By Danielle Ecuyer

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SaaS-sy Catapult yet to become cash flow positive

Moelis initiated coverage on sports technology company Catapult Sports ((CAT)) this week. Catapult, market cap circa $1.1bn, specialises in wearable devices that capture data and analyse athlete performance across the spectrum.

The business has transitioned from selling wearables to a SaaS subscription model, where hardware and related services are typically provided under three-year contracts.

That strategic shift created a temporary distortion in the financial metrics, with equipment sales now recognised over the life of the contract rather than upfront. Conversely, margins have improved as upfront hardware costs have been replaced by depreciation expenses.

Moelis estimates the sports technology market is growing at around a 15% CAGR, driven by the ongoing commercialisation of professional sport and increasing investment from media and sports betting.

Catapult’s devices are used by thousands of teams across more than 40 sports and 100 countries, with management seeking to differentiate the platform through proprietary algorithms that combine inertial and spatial data.

The broker highlights the latest Vector 8 device can generate more than 700 performance metrics from speed, distance, acceleration, orientation and heart-rate data. Wearable data is also integrated with the company’s Tactics & Coaching solutions, including MatchTracker.

In October 2025, Catapult acquired SBG Sports Software for EUR78m, adding technology that can be applied across sports such as football, ice hockey and basketball, where player positioning is defined by the opposition rather than field markings.

Since FY21, the platform has added an average of 388 teams annually. If maintained, Moelis estimates Catapult could reach around 8,000 professional teams by 2036, representing around 40% of the current addressable market.

The broker expects the company to become EPS and cash flow positive in FY28 as revenue growth drives operating leverage and management works towards a 30% earnings (EBITDA) margin.

The stock is Buy rated with a $4.25 target.

Fresh milestones for Hazer Group

Shaw and Partners turned to Hazer Group’s ((HZR)) 4Q26 update, which showed what the analyst views as a robust funding position, with $13m on hand at the end of FY26.

The funding comprises of $10.7m in cash and cash equivalents, plus $2.3m of potential funding related to a Western Australian government grant that has yet to be earned.

Against the analyst’s forecast of $9.5m, the update is viewed positively and reflective of higher-than-expected free cash flow of around $1m.

Hazer is a clean technology company developing what is referred to as the Hazer Process, converting natural gas and related feedstocks into hydrogen and graphite by using iron ore as the catalyst.

Hazer and its commercial partner, Kellogg Brown & Root, have completed a Process Design Package for a 30ktpa hydrogen facility. The analyst highlights the package provides a standardised engineering template for future projects and helps de-risking the development process.

In terms of actual projects, the FortisBC project in British Columbia, Canada, has progressed from pilot scale towards the development of a 2,500tpa commercial facility, with Kellogg Brown & Root assisting with project development.

Hazer is also continuing to work with M Resources as part of its bid for the Whyalla Steelworks. That partnership is progressing the integration of Hazer’s hydrogen and graphite technologies into low-emissions steelmaking.

POSCO and Hazer have also extended their collaboration through to 2028 to explore incorporating Hazer’s technology into POSCO’s low-carbon steelmaking pathway. Shaw notes Hazer’s graphite has produced positive results across multiple steelmaking applications.

In the UK, a revenue-generating engineering study with EnergyPathways has increased the planned hydrogen production capacity to align with the Hazer-KBR commercial design package, representing another milestone for the company.

Shaw believes these June quarter highlights represent ongoing milestones for Hazer as management seeks to monetise its technology.

The stock is Buy rated, High Risk, with a 70c target price.

ResMed’s shrinking valuation 

Canaccord Genuity has revised down earnings forecasts for ResMed ((RMD)) to account for the divestment of MatrixCare and the acquisition of neuromodulation start-up Noctrix.

MatrixCare was sold to private equity for US$490m after being acquired by ResMed in 2018 for US$750m. Strategically, the long-term post-acute care (LTPAC) enterprise software business was intended to expand ResMed’s role in connected care alongside its respiratory device portfolio.

As highlighted by the analyst, management was unable to sufficiently develop device-side innovations capable of generating meaningful cost savings for LTPAC providers. The covid pandemic also disrupted the LTPAC market, resulting in weaker organic demand for software solutions.

ResMed has acquired Noctrix, whose wearable Nidra platform uses non-invasive nerve stimulation during sleep to treat moderate-to-severe restless legs syndrome in patients whose symptoms remain inadequately controlled by medication.

The company remains at an early stage of commercialisation, with FY27 revenue guidance of US$30m. The US$340m acquisition price implies a valuation of more than 10 times forecast sales, above several recent neuromodulation sector transactions.

While not wanting to distract from the long-term potential of the Noctrix acquisition, Canaccord views the timing as “awkward”, coming at a point when investors had become increasingly optimistic about gross margin expansion and the potential for stronger EPS growth.

The share price continues to face headwinds, which the analyst attributes to uncertainty surrounding the potential re-entry of Philips into the US market in early 2027. This remains an overhang on sentiment and could weigh on forecasts should the competitive backdrop intensify.

There are also multiple potential challenges to the traditional CPAP standard of care, including GLP-1 therapies, oral appliances, AD109 and nerve stimulation devices.

On balance, Canaccord believes CPAP technology will remain the cornerstone treatment for sleep apnoea despite the emergence of competing technologies over the past decade.

Target price falls to $40 from $44.50. Buy rating retained, with the stock seen trading at its lowest valuation in a decade.

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