CATAPULT GROUP INTERNATIONAL LIMITED (CAT)
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22/05/2025

1

Buy

$5.70

10.89%

UBS notes Catapult International reported a robust FY25 earnings result, including recurring subscription revenue growth of 20%, annual contract value growth of 18%, and circa 20% excluding Russia.

Annual contract value was boosted by a 10% lift in pro teams under contract, the broker details, along with a 53% rise in cross-sold video teams.

The one-off exit from Russia largely accounted for the uplift in churn to 4.8% in 2H25, with underlying churn viewed as acceptable at below 4%.

UBS stresses 2H25 underlying earnings (EBITDA) margins were 56%, lifting overall margins to 14.5% from 10.8% in 2H24.

The analyst likes the momentum of the business, with an ongoing Buy rating. Target price moves up to $5.70 from $5.

FORECAST
UBS forecasts a full year FY26 dividend of 0.00 cents and EPS of minus -3.08 cents.
UBS forecasts a full year FY27 dividend of 0.00 cents and EPS of 0.00 cents.

26/05/2025

1

Buy

$5.00

-2.72%

Canaccord Genuity assesses Catapult International's FY25 results as solid, with revenue rising 17% y/y to US$117m vs the broker's US$116m forecast. Annual contract value grew at an 18% rate.

Cash EBITDA beat the broker's forecast, but the bigger beat was in incremental management EBITDA margin of 65%, which was well above the broker's 30% target.

The analyst doesn't expect this elevated rate to sustain and has forecast FY26-27 margin at 39% and 37% respectively.

Commentary highlights cash balance is growing and M&A is becoming an optionality, and will likely be a theme over FY26-28.

Upgrade to forecasts resulted in the target price lifting to $5.00 from $4.20. Buy retained.

FORECAST
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus -0.46 cents.
Canaccord Genuity forecasts a full year FY27 dividend of 0.00 cents and EPS of 4.00 cents.