CTOS Digital (CTOS) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue rose 7.3% year-over-year to RM81.6m, with double-digit growth in key segments and strong demand for analytics and intelligence solutions, driven by growth in both Malaysia and International segments.

• Normalised PATAMI increased 35.1% year-over-year to RM20.0m, reflecting operational improvements, improved cost discipline, and lower finance costs.

• EBITDA grew 26.6% year-over-year to RM27.6m, reflecting stronger operating leverage despite ongoing tech investments.

• Profit before tax increased 43.2% year-over-year to RM20.8m, with profit after tax up 29.9% to RM18.6m.

• Strategic focus remains on scaling digital and analytics solutions, expanding regional presence, and enhancing platform capabilities.

Financial highlights

• Revenue for Q1 FY2026 was RM81.6m, up 7.3% year-over-year; Malaysia grew 4.6% and International 24.5%.

• Normalised PATAMI reached RM20.0m, up 35.1% year-over-year; EBITDA at RM27.6m, up 26.6%.

• Cost-to-income ratio improved to 46% from 51% in the prior year.

• Share of associates’ profits surged 253.2% year-over-year to RM6.3m.

• Dividend payout ratio maintained at 60-70%, with a 70.1% payout for the first interim dividend.

Outlook and guidance

• Revenue CAGR targeted at 10-11% through 2028, aiming for RM430-440m by 2028.

• Normalised PATAMI expected to grow 35-40% by 2028, reaching RM120-125m.

• Cost-to-income ratio targeted to reduce to 40-43% by 2028.

• ROE projected to rise to 16-18% by 2028.

• Recurring revenue contribution expected to increase to 84% by 2028.