ReadyTech (RDY) H1 2026 earnings summary

Executive summary

• Total revenue for 1H FY26 increased 5.6% year-over-year to $61.6 million, with 84% recurring revenue, driven by flagship product growth and major government and justice sector contract wins, but offset by mature portfolio headwinds and a cyber incident impacting VETtrak.

• Launched refreshed strategies focused on simplification, commercial accountability, and resilience, including "Clearer. Faster. Stronger.".

• Ready Workforce flagship product delivered 24% CAGR over two years and was the best performing product.

• The company operates mission-critical vertical SaaS platforms in regulated sectors, supporting 1.2 million student enrollments and generating 7.4 million pays annually.

• Net loss after tax improved to $1.35 million in 1H FY26, compared to a $18.72 million loss in 1H FY25.

Financial highlights

• Total revenue grew 5.6% year-over-year to $61.6 million in 1H FY26, with recurring revenue at 84%.

• Subscription revenue rose 3.8% to $51.8 million; services revenue increased 16.7% to $9.8 million.

• Underlying EBITDA margin was 28.4%; underlying cash EBITDA margin was 12.2%.

• Expenses increased 10% to $44.1 million, with 29.5% of revenue invested in R&D.

• Adjusted net debt increased to $42 million, with leverage at 1.2x and interest cover at 10x.

Outlook and guidance

• FY26 revenue guidance revised to $125–127 million; FY27 targets withdrawn due to visibility concerns and protracted sales cycles.

• Underlying cash EBITDA margins for FY26 expected in the low to mid-teens.

• Focus remains on accelerating enterprise and implementation velocity, rebuilding operating leverage, and leveraging refreshed strategy for resilient growth.