Highlights

  • StepChange Holdings shares jumped 8% on 22 April 2026, following the release of latest corporate update.
  • Company’s quarterly revenue surpassed A$15 million, with a consolidated Group EBITDA of A$1.46 million.
  • EBITDA margin expanded to 9.6%, up from 8.0% in 1H FY26, driven by delivery mix and contractor optimization.
  • Successful integration of the BroadReach Group has expanded capabilities in enterprise architecture and government-sector reach.
  • Strong demand persists across core service areas, including SAP migration and cloud transformation.
  • The company is actively embedding AI tools to drive operational speed and scalable growth.

StepChange Holdings Limited (ASX:STH) saw its share price advance 8% to AUD 0.14 during the afternoon session on 22 April 2026, as the market responded positively to the company’s trading update for the quarter ended 31 March 2026. While the stock has faced headwinds over the past year—trading down 32.5%—the latest results suggest a shift in momentum, driven by a combination of revenue growth, margin improvement, and successful strategic integration.

StepChange Holdings has established itself as a prominent provider of consulting services aimed at streamlining core business processes, a practice known as Enterprise Resource Planning (ERP). Tracing its origins back to 2003, the company specializes in ERP transformation and implementation, primarily leveraging SAP software solutions to help businesses modernize and improve operational efficiency. By aligning complex technical systems with client objectives, the firm has positioned itself as a key partner for large-scale digital transformations.

Quarterly Performance and Margin Expansion

StepChange reported unaudited quarterly revenue exceeding A$15 million, with an EBITDA of A$1.46 million for the consolidated group. This performance was underpinned by organic growth across both new and existing clients, alongside initial contributions from the recently integrated BroadReach Group Pty Ltd.

A notable highlight of the update was the expansion of the group's EBITDA margin to 9.6%, an improvement from the 8.0% reported for the first half of the 2026 financial year. Management attributed this margin expansion to a disciplined focus on utilization rates, optimization of the contractor mix, and a deliberate strategic shift toward higher-value, outcome-based engagements. These metrics indicate that StepChange is successfully navigating the transition toward more profitable service delivery models.

Drivers of Operational Momentum

The company’s revenue growth was facilitated by sustained demand across its core service lines, which include SAP migration, cloud transformation, and ICT advisory services. Expansion within existing Tier 1 enterprise clients, coupled with new contract wins in the energy and government sectors, provided a firm foundation for the quarter’s revenue.

Furthermore, the integration of the BroadReach Group is progressing according to plan. This acquisition has not only expanded StepChange’s client reach but has also enhanced the company’s capabilities in enterprise architecture and ICT advisory. By strengthening these advisory services, StepChange is positioning itself earlier in the client decision-making cycle, which is expected to facilitate further cross-sell opportunities in future quarters.

Looking ahead, the company continues to embed Artificial Intelligence (AI) tools across its delivery model. By leveraging these technologies, StepChange aims to increase the consistency and speed of its output, supporting scalable growth without requiring a proportional increase in headcount. Managing Director Shane Bransby noted that the results reflect strong execution across the team and validate the company's focus on high-value engagements.