ReadyTech (RDY) H2 2025 earnings summary

Executive summary

• Achieved total revenue of $121.8M in FY 2025, up 7.1% year-over-year, with SaaS subscription revenue rising 7.6% to $102.7M.

• Supported over 2 million students, processed $7B in property rates, $28B in payroll, and over 1M justice cases in the UK in FY 2025.

• $15.4M in new business wins, with momentum weighted to the second half and a strong Q4 exit; high-conviction pipeline of $33.1M.

• Launched seven AI initiatives to enhance product capability and customer value, including agent technology and sector-specific solutions.

• Strategic acquisition and integration of CouncilWise, unblocking local government growth.

Financial highlights

• Total revenue reached $121.8M, up 7.1% year-over-year; subscription revenue was $102.7M, recurring revenue comprised 84–84.3% of total.

• Underlying EBITDA was $39.5M (margin 32.5%), underlying cash EBITDA margin at 16%.

• Underlying NPAT grew 4.8% to $8.7M.

• Net debt to EBITDA at 0.9–0.95x, with $24M in cash.

• Underlying EBITDA to cash flow conversion was 85%.

Outlook and guidance

• FY 2026 revenue projected at $132M–$135M; FY 2027 at $150M–$153M.

• Revenue growth underpinned by $10.5M in confirmed H2 FY 2025 wins and a $33.1M high-conviction pipeline.

• Cash margin expected in mid-teens for FY 2026, expanding to late teens in FY 2027.

• Net revenue retention expected to rise to 103% in FY 2026 and 104–105% in FY 2027.

• Incremental $2.5M investment in FY 2026 to drive enterprise growth, product, and AI innovation.