Highlights

• 1H26 total Revenue of $86.3 million (up 12% on 1H25), with SaaS revenue up 38% to $43.5 million and ARR growing 17% to $170.1 million.

• EBITDA of $12.4 million (up 24%) and EBITDA Margin after FX adjustment of 13.8% (up 1.9 points) as Operating Leverage builds.

• Contracted Enterprise Market Share expanded from 46% to 48% following major wins: Cinépolis Mexico (504 sites), Cineworld (88 sites), Cinemex return (312 sites).

• FY26 revenue guidance raised to $179-184 million (from $176-182 million); EBITDA margin guidance maintained at 18-20% for FY26.

Vista Group International Limited (ASX:VGL, NZX:VGL) is the world's leading provider of software and technology solutions to cinema operators and the broader film industry. The Company's flagship Vista Cinema platform manages ticketing, concessions, loyalty, and cinema operations for multiplex and independent cinema operators globally, with a growing suite of data analytics, digital engagement, and cloud-based solutions. Vista Group holds approximately 48% contracted enterprise market share globally — serving the majority of the world's largest cinema chains — making it the clear Market Leader in cinema management software.

Recent Development

Released on 3 August 2026, Vista Group reported 1H26 total revenue of $86.3 million (up 12% on 1H25), with Recurring Revenue growing 14% to $80.1 million (93% of total revenue) and SaaS revenue growing 38% to $43.5 million. ARR grew 17% to $170.1 million at 30 June 2026, providing strong forward revenue visibility. EBITDA grew 24% to $12.4 million, with EBITDA margin after FX adjustment of 13.8% (up 1.9 points on 11.9% at 1H25). Operating Cash Flow grew 25% to $9.2 million.

Major operational wins in 1H26: contracted enterprise market share expanded from 46% to 48%, with key agreements including Cinépolis Mexico (504 sites, substantially de-risking the FY26 Operational Excellence target), Cineworld UK (88 sites), Cineplexx Europe (59 sites), and the return of Cinemex Mexico (312 sites) from a competing solution. Vista Payments achieved more than $2 million of contracted ARR with 11 clients live at 30 June 2026. 37% of sites are contracted to Operational Excellence and 44% to the Vista Cloud Platform. FY26 revenue guidance was raised to $179-184 million (from $176-182 million), with EBITDA margin guidance maintained at 18-20% for FY26.

Sector Context

The global cinema industry is in a structural recovery phase following COVID closures, with 1H26 domestic box office up 15% year-on-year and FY26 industry forecasts approaching US$10 billion. Strong film slates — including six Franchise tentpoles in 2H26 with combined prior instalment domestic box office of US$3.1 billion — provide a tailwind for cinema attendance and Vista's SaaS revenue (which includes per-transaction and volume-linked components). Vista's cloud transition creates a compounding revenue growth dynamic: as more cinema sites migrate from on-premise software to Vista Cloud, SaaS revenue per site increases substantially, driving ARR growth and improving revenue quality.

Risks and Uncertainties

The Cinépolis Mexico win (504 sites) is highly significant but concentrated — any service delivery issues with such a large client could be reputationally and financially damaging. The cloud migration (44% on Vista Cloud Platform, 37% to Operational Excellence) needs to continue at pace, as competitors could attempt to disrupt during migration transition periods. Currency risk is material for NZD-reporting Vista Group given the majority of revenue is earned in EUR, USD, and other non-NZD currencies. Free cash flow is expected to be neutral in 2H26 — meaning the Business is consuming cash for growth Investment — which requires careful management as the revenue base grows.

Catalysts to Watch

Progress toward full migration of the major new client wins (Cinépolis, Cineworld, Cinemex) to Vista Cloud will drive ARR growth through 2H26 and into FY27 as sites go live. Vista Payments' trajectory — currently at $2 million ARR but with early commercial traction suggesting the opportunity may exceed the original business case — could become a meaningful additional revenue stream. The 2H26 film slate (six franchise tentpoles) should drive strong box office, increasing transaction volumes for Vista's per-transaction revenue components. FY26 full-year results will confirm whether the 18-20% EBITDA margin guidance is achieved, which would be a strong demonstration of the operating leverage model.

Final Thoughts

Vista Group (ASX:VGL) is executing its cloud transition strategy at an accelerating pace — 38% SaaS revenue growth, rising market share (48%), and the Cinépolis 504-site win demonstrate a business with clear competitive moat and growing pricing power. The guidance upgrade and the emerging Vista Payments opportunity suggest the investment thesis is developing favourably, with the second half film slate providing a natural industry tailwind.