RAS Technology (RTH) H2 2025 earnings summary

Executive summary

• FY 2025 saw revenue of $21.3 million, up 31% year-over-year, with strong growth across all segments and successful integration of the Hong Kong acquisition.

• Normalized EBITDA reached $2.9 million, a significant increase from the prior year, and normalized cash flow from operations was $3.6 million.

• Achieved second consecutive year of before-tax profitability, with normalized before-tax profit of $754k and after-tax profit of $1.1 million.

• Expanded into Asia via acquisition of Hong Kong racing publications and data services, providing immediate access to a major wagering market.

• Secured exclusive partnerships and launched new technology platforms in the UK, driving global growth.

Financial highlights

• Revenue reached $21.3 million, up 31% year-over-year, marking the fourth consecutive year of 30%+ growth.

• Normalized EBITDA was $2.9 million, up significantly from the prior year, excluding one-off acquisition costs.

• ARR finished at $21.8 million, including $1.1 million from the Hong Kong acquisition, representing 16% growth.

• Cash balance ended at $5.7 million, down from $8.3 million, reflecting acquisition and tech investments.

• Gross margin averaged 81%, with traditional business at 84% and overall margin impacted by lower-margin HK publications.

Outlook and guidance

• Positioned for global expansion, targeting growth in the US, UK, Europe, and Asia, leveraging core data and technology assets.

• Wagering360 white label ecosystem is live, with more brands launching soon, expected to drive growth.

• Focus on expanding proprietary Managed Trading Service and strengthening presence in Hong Kong.

• Incremental investments in platform and capability will continue, though most heavy lifting was completed in FY 2025.

• Growth initiatives include expanding Enhanced Information Services and Managed Trading Services internationally.