Atturra (ATA) H2 2025 earnings summary

Executive summary

• Achieved 24% year-over-year revenue growth to $300.6 million, with underlying EBITDA up 24% to $31.5 million and gross margin rising to 34%.

• Predictable revenue increased to 78% of total, driven by recurring and long-term client contracts.

• Expanded managed services, proprietary IP offerings, and completed targeted acquisitions in New Zealand and the US.

• Recognized with multiple industry and technology partner awards, strengthening strategic partnerships.

• Workforce surpassed 1,200, with expanded presence in the U.S. and continued focus on ANZ.

Financial highlights

• Revenue grew 24% year-over-year to $300.6 million, with underlying EBITDA up 24% to $31.5 million and gross margin improving to 34% from 32% year-over-year.

• Underlying NPATA increased 20% year-over-year.

• Cash and cash equivalents rose 51% to $91.6 million; operating cash flow was $14.7 million, up $2.9 million year-over-year.

• EPS decreased 28% to $0.026 due to capital raising; adjusted EPS (EPSA) down 7% to $0.056.

• Recurring revenue rose to 31% and long-term client revenue to 47%.

Outlook and guidance

• FY26 revenue forecast above $384 million and underlying EBITDA above $40.3 million, including Blue Connections acquisition.

• Targeting revenue growth above 20% with a minimum underlying EBITDA margin of 10.5%.

• Organic growth for FY 2026 expected at 5%-10%, offsetting Canberra/federal market headwinds.

• Increased investment in proprietary IP (up to $2.5 million capitalized in FY 2026) and strategic sales capability (over $2.5 million).

• Focus on EPS accretion, efficient balance sheet, and further AI-driven business model enhancements.