RPMGlobal Holdings Ltd (ASX:RUL) shares soared nearly 17% on Wednesday after the mining software group posted a sharp turnaround in earnings and issued FY26 guidance that topped market expectations.
At 3:15 pm AEST, the stock was up 16.9% at A$3.87, making it one of the day’s top performing small caps on the ASX. The rally extends gains from early July, when the stock jumped 14% on a bullish trading update.
Earnings rebound
For the 12 months to June 30, 2025, RPMGlobal reported revenue of $76.7 million, up 6% from the prior year, with subscription revenue climbing 20% to $54.8 million as the company continued its shift away from perpetual licences.
Underlying earnings (EBITDA) rose 32% to $6.2 million, while statutory profit surged 452% to $47.5 million, bolstered by the sale of its advisory division to SLR Consulting for $63 million.
Chairman Stephen Baldwin said FY25 was “a transitional year for the company” as it moved to become a pure-play software provider, adding that the divestment “is aligned with the company’s long-term vision of becoming the leading software technology provider to the resources industry”.
Strong pipeline and cash position
RPMGlobal booked $100.8 million in new software licence sales during FY25, up 31% on the year before, taking its backlog of contracted, non-cancellable software revenue to $200 million. Cash reserves stood at $75.4 million at year-end, with no debt.
No dividend was declared, though the board has flagged a potential $21 million capital return subject to tax office and shareholder approval.
FY26 guidance lifts sentiment
RPMGlobal expects revenue of $88 million–92 million in FY26, with adjusted EBITDA between $23–25 million — a 14% beat at the midpoint against analyst estimates. Pretax income is forecast at $20 million–22 million.
Managing director and CEO Richard Mathews said the company is now positioned for stronger profitability.
“The financial leverage provided by the $200 million in pre-contracted non-cancellable software revenue, combined with the $6.1 million saving in annual operating costs which were removed from the remaining business in FY2025 (following divestment of the advisory business), will ensure a major improvement in the operating margins of the business going forward,” he said.