ReadyTech (RDY) H2 2025 earnings summary

Executive summary

• Achieved total revenue of $121.8M in FY25, up 7.1% year-over-year, driven by flagship SaaS products, enterprise market momentum, and strong new business wins of $15.4M, particularly in Q4.

• Supported over 2 million students, processed $7B in property rates, $28B in payroll, and over 1M justice cases in the UK in FY25.

• AI-driven product innovation and seven new AI initiatives, including agent technology and sector-specific solutions, are fueling growth and operational efficiency.

• Strategic acquisition and integration of CouncilWise unblocked local government growth and contributed $2M in new and upgrade wins.

• Leadership strengthened with new hires, including a new local government segment leader; CFO Nimesh Shah to depart, with a new CFO announcement imminent.

Financial highlights

• Total revenue reached $121.8M, up 7.1% year-over-year, with SaaS subscription revenue rising 7.6% to $102.7M and recurring revenue at 84.3%.

• Underlying EBITDA was $39.5M (margin 32.5%), underlying cash EBITDA margin at 16%, and underlying NPAT grew 4.8% to $8.7M.

• Net debt to EBITDA at 0.95x, with $24M in cash and gearing within target range.

• Underlying EBITDA to cash flow conversion was 85%, with operating cashflow for the year at $33.6M.

• Non-cash impairment of $21.7M recognized in the Government segment.

Outlook and guidance

• FY26 revenue projected at $132M–$135M; FY27 at $150M–$153M, underpinned by $10.5M in confirmed H2 FY25 wins and a $33.1M high-conviction pipeline.

• Cash margin expected in mid-teens for FY26, expanding to late teens in FY27.

• Net revenue retention expected to rise to 103% in FY26 and 104–105% in FY27.

• Incremental $2.5M investment in FY26 to drive enterprise growth, product, and AI innovation.