This article first appeared on GuruFocus.

Revenue: USD 68 million, a 16% year-over-year increase.

Annual Contract Value (ACV): USD 115.8 million, 19% constant currency growth.

Management EBITDA: USD 10 million, a 50% year-over-year increase.

Operating Profit Margin: 14%.

ACV Retention Rate: 95.1%.

ACV per Pro Team: Exceeded USD 28,000, an 8% year-over-year increase.

Free Cash Flow: USD 8.2 million, excluding transaction costs.

Net Cash Position: More than USD 11 million.

Pro Team Count: Over 3,800, a 12% year-over-year increase.

Variable Costs: Declined as a percentage of revenue from 52% to 49%.

Fixed Costs: 37% of revenue, impacted by payroll tax and Perch acquisition.

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Release Date: November 17, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Catapult Sports Ltd (CAZGF) reported a significant increase in its customer base, growing by 400 teams to over 5,000 teams worldwide in just six months.

The company achieved a new high in the Rule of 40 metric, reaching 33%, up from 31% a year ago, indicating strong growth and profitability.

Annual Contract Value (ACV) grew by 19% year over year, with contracted subscriptions reaching a record $116 million.

Management EBITDA increased by 50% year over year, reaching $10 million, despite an unexpected payroll tax expense.

The company successfully integrated new acquisitions, Perch and Impect, enhancing its product offerings and market position.

An unexpected payroll tax expense of approximately $2 million impacted the operating profit margin.

The exit from the Russian market had a one-time negative impact on the ACV retention rate, reducing it by around 1 percentage point.

Fixed costs increased by 18% year over year, partly due to the payroll tax expense and the acquisition of Perch.

The media business, despite strong growth, is considered unpredictable and historically has grown at a single-digit rate.

The integration of new acquisitions is still in early stages, making it difficult to predict their full impact on future growth.

Q: Can you discuss the organic pro team growth for the first half, excluding the impact of the Perch acquisition? A: Will Lopes, CEO: The addition of pro teams from Perch was minimal, with a high overlap between our existing pro teams and theirs. Most of the pro team growth was organic, with less than 10% of additions coming from Perch.

Q: How has the multi-vertical team growth progressed, particularly with the new video solutions? A: Will Lopes, CEO: The primary growth in multi-vertical teams is from performance and health wearables customers adopting video solutions. The sales team focused on new logos and upselling within the vertical, which doesn't show up in the multi-vertical numbers.

Q: What changes have been made in the sales strategy to drive strong team growth? A: Will Lopes, CEO: There haven't been significant changes; it's more about where the pipeline fell. We saw strong growth in wearables, particularly in soccer regions and American football in the U.S. The integration of Perch also contributed to upselling within that vertical.

Q: With the acquisitions of Perch and Impect, how do you see top-line growth evolving over the next 12 to 24 months? A: Will Lopes, CEO: We expect ACV growth to remain strong. The addition of Perch and Impect will help accelerate growth in their respective verticals. It's early to provide specific guidance, but these additions, along with the Vector 8 rollout, will support continued strong growth.

Q: Can you provide more details on the Vector 8 rollout and its impact on growth? A: Will Lopes, CEO: The rollout started with American football in North America and is expanding to other sports and geographies. The new platform allows faster feature development, which could lead to increased share of wallet. However, as a subscription business, the hardware rollout itself isn't an immediate ACV moment; the software improvements will drive long-term ACV benefits.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.