StepChange Holdings Limited (ASX:STH) is an ASX-listed specialist SAP and digital transformation consulting firm that listed on the ASX in July 2025. The company provides SAP implementation, cloud migration, ICT strategy, enterprise architecture, and AI-assisted consulting services to enterprise and government clients across Australia, with a newly established US operating platform. Following its July 2025 IPO, StepChange executed a disciplined M&A strategy with the Acquisition of BroadReach Group.

Recent Development

On 28 August 2026, StepChange Holdings reported its maiden full-year results as a listed company for the financial year ended 30 June 2026. Revenue reached $55.6 million — up 31% on the pro-forma FY25 comparative period — exceeding IPO Prospectus forecasts. Underlying EBITDA improved 57% to $5.01 million, also ahead of Prospectus guidance. Gross Margin improved to 14.3%, up 1.1 percentage points on pro-forma FY25. Normalised NPAT was $2.537 million (excluding non-deductible accounting adjustments of $3.1 million relating to Business combinations). The acquisition and integration of BroadReach Group was completed during the year, contributing to Earnings from January 2026 and expanding StepChange's advisory capability in enterprise architecture, ICT strategy, and government consulting. US operations were also established to support multinational clients. Headcount passed 200 consultants and specialists. Net Assets increased to $22.12 million from $1.2 million pro-forma at FY25. Cash at bank stood at $5.2 million with an undrawn $11 million Westpac facility. During FY26, StepChange developed more than 100 reusable AI-assisted consulting methods across 40 business functions, with client case studies demonstrating dramatic productivity improvements.

Sector Context

Australia's IT services market is forecast to more than double — from $38 billion to $91 billion — between 2026 and 2031, while the global AI services market is forecast to reach $347 billion by 2031, growing at more than three times the rate of Cybersecurity and managed services. StepChange's positioning in SAP transformation — where large enterprises are upgrading to SAP S/4HANA and cloud ERP — places it directly in the path of a major multi-year enterprise technology spend cycle. The integration of AI into consulting delivery represents a structural efficiency advantage and an emerging revenue stream.

Risks and Uncertainties

StepChange's consulting business is people-intensive and subject to consultant availability, utilisation rates, and attrition risk. The BroadReach acquisition is still being integrated and cross-selling synergies remain to be fully realised. The US operations are at an early stage with limited revenue contribution as yet. Large consulting engagements can be subject to client budget delays or scope changes, which can create revenue lumpiness. The company carries $3.1 million of non-deductible accounting adjustments from business combinations that weigh on statutory profit.

Catalysts to Watch

Key metrics for FY27 include revenue growth continuation, improvement in underlying EBITDA margin, and the pace of cross-selling between the StepChange and BroadReach client bases. Progress in the US market — including any material contract wins with multinational clients — would be a significant signal. The broader adoption of StepChange's AI consulting methodology by clients, and any announcement of new acquisition targets consistent with the buy-and-build strategy, will also attract investor attention.

In Closing

StepChange has delivered a strong debut full-year result — exceeding IPO forecasts on revenue and EBITDA, completing a meaningful acquisition, and establishing an international platform. The IT services market tailwinds are real and well-documented. The challenge for FY27 is to demonstrate that the growth model is scalable, the BroadReach integration is additive, and the US platform can contribute meaningfully to group earnings.