Key Highlights

• Catapult Sports Ltd (ASX:CAT) is scaling its subscription model by selling more software-and-wearable packages to professional teams, lifting the average.

• In its FY26 result, for the year to 31 March 2026, the sports technology company reported annualised contract value (ACV).

• Those metrics sit at the heart of a Software-as-a-Service (SaaS) Business that earns Recurring Revenue from long-term contracts rather than.

• The All Ordinaries constituent was trading at A$3.035 at around midday on Wednesday 23 September 2026, down 3.04% in midday.

Catapult Sports Ltd (ASX:CAT) is scaling its subscription model by selling more software-and-wearable packages to professional teams, lifting the average value of each customer and holding churn low. In its FY26 result, for the year to 31 March 2026, the sports technology company reported annualised contract value (ACV) of US$133.8 million, up 28% in constant currency, with customer retention of 96% and more than 570 new professional teams added. Those metrics sit at the heart of a software-as-a-service (SaaS) business that earns recurring revenue from long-term contracts rather than one-off hardware sales.

The All Ordinaries constituent was trading at A$3.035 at around midday on Wednesday 23 September 2026, down 3.04% in midday trade.

Business snapshot: from wearables to a sports software platform

Catapult began as a maker of GPS-enabled wearable devices that track athlete load, speed and movement. It has since broadened into a platform that combines performance and health monitoring with video analysis, coaching tools and data services. Clubs pay subscription fees for access to the hardware, analytics software and support, and the goal is to embed Catapult's tools into daily Training and match preparation so that switching becomes costly and inconvenient.

The company serves thousands of teams across football, rugby, American football, basketball and other sports, with professional and elite college teams its core market. Growth comes from three levers: winning new teams, selling additional modules to existing customers, and raising the average contract value per team. In FY26, Catapult said the average ACV per professional team exceeded US$30,000, up 10%.

What the FY26 numbers show

Catapult reports in US dollars. For FY26 it delivered record revenue of US$140.7 million, up 19% in constant currency. ACV grew 28% in constant currency to US$133.8 million, or 18% excluding acquisitions, showing that most of the growth came from the existing business rather than bolt-on deals. Year-end ACV was equivalent to about 95% of FY26 revenue, which illustrates how far the company has shifted towards contracted, recurring income. Because ACV measures the annualised value of subscriptions in place at a point in time, it tends to lead reported revenue, so ACV growth at the end of one year typically supports revenue in the next. Management EBITDA rose 67% to US$24.7 million, and the contribution Margin improved to 53% from 49% a year earlier.

Free cash flow, excluding acquisitions and transaction costs, was US$6.5 million, and the company said it held net cash of more than US$53 million with no net debt. On a statutory basis, however, Catapult remained loss-making for the year, because management EBITDA excludes several costs that are recognised in the statutory accounts. Investors therefore tend to focus on ACV, retention and free Cash Flow when judging the company's progress.

How acquisitions are extending the subscription offer

Part of Catapult's recent ACV growth reflects acquisitions. The company has integrated Perch, a velocity-based strength training technology, and IMPECT, a football data and analytics provider. Both are designed to add modules that can be cross-sold to existing clubs, increasing wallet share per customer. Catapult described both businesses as fully integrated by the time of its FY26 result.

This strategy is common among vertical SaaS companies: buying complementary products and pushing them through an established sales channel can lift ACV faster than organic growth alone. The trade-off is integration risk and the upfront cash or Equity cost of each deal.

Why investors are watching margins and cash flow

For FY27, Catapult did not provide specific numerical guidance but said it expects continued ACV growth, low customer churn, margin improvements and higher free cash flow, consistent with its "Rule of 40" target. The Rule of 40 is a common SaaS benchmark under which revenue growth plus profit margin should add up to at least 40%. Catapult's ability to move closer to or beyond that threshold is likely to influence how the market values its recurring revenue base.

The gap between improving operating metrics and a weaker share price has been a recurring theme in commentary on the stock in 2026.

Sector backdrop and key risks

Sports technology spending is supported by the professionalisation of women's sport, rising broadcast revenues in major leagues and the growing use of data in recruitment and injury prevention. However, many clubs operate on tight budgets, and spending decisions can be affected by economic conditions, league finances and changes in coaching staff.

Key risks for Catapult include currency movements, given it earns revenue in US dollars, euros and other currencies but is listed in Australia; competition from other wearable and video analytics providers; integration of acquired businesses; and the possibility that churn rises if teams cut costs. Because the business remains loss-making on a statutory basis, investors also watch cash burn closely, and technology valuations in ASX shares remain sensitive to Interest Rate expectations.

What investors may watch next

Catapult has already held its 2026 Annual General Meeting as a virtual meeting, so the next major update is Catapult's half-year result for the six months to 30 September 2026, due later in calendar 2026. Investors are likely to focus on ACV growth rates, both including and excluding acquisitions, retention levels, contribution margin, and progress towards the company's free cash flow and Rule of 40 targets. Any new acquisitions, large league-wide contracts or changes to pricing would also be relevant for the All Ordinaries stock.

The bottom line

Catapult Sports is scaling its subscription model by adding teams, lifting average contract values and cross-selling acquired modules, with FY26 ACV growth of 28% and 96% retention. The September 2026 share price, however, that the market is still weighing that momentum against statutory losses and a cautious appetite for growth technology stocks.