CATAPULT SPORTS LTD (ASX:CAT, OTC:CAZGF) earlier this week reported strong financial results, with the global sports technology company delivering a 67% year-on-year increase in operating profit as revenue surpassed the A$200 million milestone for the first time.
Speaking with Proactive, chief executive and managing director Will Lopes said the company’s growth reflected both rising demand for sports analytics technology and disciplined operational execution.
Catapult generated US$141 million in revenue during the period, while annualised contract value (ACV) increased 28% to just under US$134 million. Management EBITDA reached approximately US$25 million.
Lopes said the company had focused heavily on improving operating efficiency over the past several years, reducing the variable cost required to generate new revenue from 66% three years ago to 47% today.
“We are very focused on making that variable cost more and more efficient,” Lopes said, adding that Catapult now retains “almost half” of every incremental dollar generated as profit.
The company has evolved significantly from its origins in wearable athlete tracking devices into a broad sports analytics platform spanning athlete monitoring, tactical video analysis, gym performance systems, Formula 1 race analytics and football recruitment technology.
Catapult’s systems are now used across more than 40 sports in over 100 countries. Lopes highlighted Formula 1 as a particularly strong example of the company’s growing technological footprint, with the FIA and multiple teams using Catapult software for race strategy and predictive analytics.
According to Lopes, one of Catapult’s strongest competitive advantages lies in its ownership of extensive athlete performance datasets collected over more than 15 years. He suggested this positions the company strongly for future AI-driven product development.
“We are also the primary creators of the data,” Lopes said.
Lopes also pointed to broader structural tailwinds supporting the sports technology industry, noting that live sports remained one of the few forms of entertainment still attracting large communal audiences and premium advertising expenditure.
He said professional sports organisations were becoming increasingly sophisticated and data-driven, creating growing demand for technologies that improve athlete performance, recruitment and tactical decision-making.
While the company is not yet paying dividends, Lopes acknowledged improving profitability may eventually support future capital management initiatives. For now, he said Catapult remained focused on growth and margin expansion.
Shares in Catapult Sports rose strongly following the release of the results.
Key highlights
- Catapult Sports reported operating profit growth of 67% year-on-year
- Revenue reached US$141 million, surpassing A$200 million for the first time
- Annualised contract value (ACV) grew 28% to nearly US$134 million
- Management EBITDA reached approximately US$25 million
- Catapult operates across more than 40 sports in over 100 countries
- The company’s wearable technology tracks athlete performance and health metrics
- Formula 1 teams and the FIA use Catapult software for race strategy and race control
- Catapult has expanded into video analysis, gym monitoring and football recruitment technology
- Lopes highlighted improving operational efficiency as a major profitability driver
- The company reduced variable revenue generation costs from 66% to 47%
- AI opportunities are emerging from Catapult’s extensive athlete performance dataset
- Lopes said the company has consistently delivered on targets for five consecutive years
Proactive: Welcome back to Proactive Investors. Ladies and gentlemen, I'm your host, Kerry Stevenson. Boy, oh boy. Have I got some results. Well not me — Will Lopes, CEO and managing director of Catapult Sports. The company has catapulted out of the blocks today with fantastic latest results, up 67% year-on-year. I want investors to take notice because this company is making technology for sports teams.
Will Lopes: Thank you for having me again.
Proactive: Let’s talk about the financial results. Revenue is up to $141 million, profit around $25 million and operating profit is up 67% year-on-year. The market clearly likes it with the stock up almost 20% today. For those unfamiliar with Catapult Sports, give us an overview of what the company does.
Will Lopes: Catapult Sports is a technology platform for sports. We provide solutions that help teams understand and improve athlete performance from both tactical and physical perspectives.
We pioneered wearable technology in professional sports. Athletes often wear a Catapult device under their jersey that tracks positioning and performance data to help teams keep players healthy and performing at peak levels.
Since then, we’ve expanded into video analysis, gym performance monitoring, Formula 1 race analytics and football recruitment software. Formula 1 teams use our technology for race strategy and predictive analytics, while football clubs use our recruitment systems to identify talent globally.
The company has evolved into a broad sports technology platform supporting performance, tactics, officiating and athlete management.
Proactive: How difficult was it to break into Formula 1?
Will Lopes: People assume Formula 1 was already highly advanced technologically, but historically many teams were still relying on spreadsheets and manual tracking. We developed systems capable of analysing thousands of telemetry data points from the car every millisecond, combined with track conditions and weather data.
Our software predicts race outcomes and strategic moments in real time. Once teams saw the value, adoption accelerated quickly. Today, even the FIA uses our systems for race monitoring and control.
Proactive: Is there any area of sport you’re not involved in?
Will Lopes: We deliberately stay away from betting, fan engagement and media monetisation. Our focus is helping teams and athletes make better decisions. We currently work across more than 40 sports in over 100 countries.
Proactive: Talk us through the latest results and the discipline behind them.
Will Lopes: Two key metrics matter most for us: annualised contract value (ACV) and management EBITDA.
ACV grew 28% this year to just under US$134 million, while management EBITDA reached approximately US$25 million. Revenue grew to US$141 million and surpassed A$200 million for the first time.
Our strategy has focused on improving operational efficiency. Three years ago, it cost us roughly 66 cents to generate each new dollar of revenue. Today that’s down to 47 cents, with a target of 45 cents.
At the same time, we’ve kept fixed cost growth disciplined while scaling the business. That’s enabled us to generate increasing profitability over the past three years.
Proactive: For investors looking at Catapult today, why should they pay attention?
Will Lopes: Sports is an industry with strong structural tailwinds. Live sports remains one of the few forms of communal entertainment attracting large advertising dollars and increasing media rights values.
Professional sports ownership is also becoming more institutional and data-driven. Teams increasingly rely on technology to gain competitive advantages.
Catapult sits at the centre of that trend. We help teams understand athlete health, tactical performance and recruitment. We also hold one of the largest athlete performance datasets globally, which positions us strongly to apply AI-driven products in the future.
Proactive: What about competition?
Will Lopes: There are competitors in different parts of the market, but nobody has the comprehensive platform we do. Importantly, we are also the primary creators of much of the athlete data through our devices. That creates a major competitive advantage, especially as AI capabilities expand.
Proactive: Final thoughts for investors?
Will Lopes: We focus heavily on execution and delivering what we say we will deliver. Over the past five years, we’ve consistently hit our targets and delivered on our commitments. We believe we operate in a strong industry with long-term growth potential.
Proactive: Any thoughts on dividends?
Will Lopes: We’re not quite there yet, but improving profitability does naturally raise those discussions. Right now, we remain focused on growth and margin expansion.
Proactive: Great to speak with you, Will. Fantastic results today and exciting developments in sports technology. Thanks for joining us on Proactive Investors.
Will Lopes: Thank you for taking the time.