Why Are Catapult Sports Shares Up So Much?

Catapult Sports shares (ASX: CAT) come into Thursday’s session off the back of a 17.71% gain, with markets bullish on the stock following a comprehensive earnings beat, with management EBITDA jumping 67% to US$24.7 million and annualised contract value climbing 28% to US$133.8 million, surpassing both broker and consensus expectations.

The Catapult Sports share price heads into the session at A$3.39, having briefly pushed above A$3.50 in early trade Wednesday, before a lunchtime lull trimmed some of the advance. The move represents the sharpest one-day rally for the ASX 300 constituent in more than 12 months, though shares remain 20.6% lower year-to-date, underscoring the degree of bearish sentiment that had built up ahead of the result.

The stock’s market capitalisation now sits around A$1.04billion, having fluctuated sharply over the past 18 months as markets weighed the company’s transition from hardware to a subscription-dominant business model. Wednesday’s surge came against a backdrop of broader weakness in the ASX 200, with Catapult standing out as one of the session’s strongest performers on volume roughly double the average.

Financials Driving The Move

Catapult reported FY26 revenue of US$140.7 million, up 19% in constant currency and a new record for the group. The result was underpinned by SaaS revenue of US$118.6 million, which grew 21% in constant currency and now accounts for 95% of total revenue alongside other recurring streams, cementing the business model’s predictability.

Management EBITDA of US$24.7 million comfortably exceeded Bell Potter’s forecast of US$23 million and consensus estimates clustered around US$22.4 million. The 67% year-on-year improvement drove the management EBITDA margin to approximately 18%, a record level for Catapult and clear evidence of operating leverage as the SaaS platform scales.

Annualised contract value reached US$133.8 million, reflecting 28% growth in constant currency. Stripping out the contributions from recent acquisitions Perch and IMPECT, organic ACV still expanded 18%, which management flagged as a record level of incremental growth. The company added 576 new professional teams during the year, while average ACV per professional team climbed 10% in constant currency to exceed US$30,000 for the first time. Customer retention improved to above 96%, signalling low churn and strong product-market fit.

Segment Strength

The Performance and Health division delivered ACV growth of 23% in constant currency, driven by geographic expansion, particularly in soccer across EMEA and Central America, and continued penetration of North American college sports. The Tactics and Coaching segment posted even stronger momentum, with ACV surging 40% as the IMPECT acquisition—completed for approximately US$90 million including earn-outs—began contributing alongside organic growth in the Pro Video Suite.

IMPECT, a soccer analytics and tactical analysis platform, was acquired to deepen Catapult’s footprint in global football and integrate video and performance data into a unified offering. The deal, funded via institutional placement and share purchase plan, initially sparked dilution concerns but has since validated management’s capital allocation as the segment’s growth trajectory accelerated. The smaller Perch acquisition, focused on strength-training analytics, also contributed to the reported ACV figures.

Management highlighted that the acquisitions are augmenting, rather than masking, underlying demand, with the 18% organic ACV growth demonstrating the core platform’s continued resonance with professional and collegiate teams worldwide.

Outlook

Markets will now focus on whether Catapult can sustain its ACV growth trajectory while continuing to expand margins as scale benefits compound. The 95% recurring revenue mix and 96%-plus retention provide a solid foundation for forward visibility, but the company must demonstrate that organic growth can remain in the mid-to-high teens even as the base grows and competition intensifies in sports analytics.

Integration of IMPECT and Perch will remain under scrutiny, particularly around synergy realisation and earn-out obligations. Any slowdown in professional team additions or softness in average ACV per customer would likely trigger a sharp re-rating given current valuation levels. On the positive side, cross-sell opportunities across the expanded product suite and further geographic penetration present clear avenues for upside surprises.