• Underlying EBITDA up 4.6% to $18.2m
• Enterprise pipeline of $37.5m with $13.5m in conviction opportunities
• Addressing key product reference issue in Local Government, unlocking cloud migration

ReadyTech Holdings Ltd, a leading provider of mission-critical software solutions, has reported its financial results for the first half of the 2025 financial year. The company delivered a 6.6% increase in total revenue to $58.3m, with subscription revenue up 5.7% to $49.9m and recurring revenue accounting for 85.6% of total revenue. Excluding the Government segment, revenue growth was 9% on a year-over-year basis. The company's underlying EBITDA grew by 4.6% to $18.2m, with an EBITDA margin of 31.2%. Underlying cash EBITDA increased by 10.2% to $8.6m, with a cash EBITDA margin of 14.7%. The company's balance sheet remains strong, with a net debt to EBITDA ratio of 0.86x as of 31 December 2024. ReadyTech made progress across its key business segments, with the Workforce Solutions segment delivering a 10.4% revenue increase, the Education & Work Pathways segment growing by 7.1%, and the Government & Justice segment seeing a 1.2% and 13.0% increase, respectively. The company's enterprise strategy continues to gain traction, with $13.5m in conviction opportunities at the shortlisted/preferred stage and a total enterprise pipeline of $37.5m. ReadyTech also addressed a key product reference issue in the Local Government segment, which is expected to unlock cloud migration opportunities and accelerate growth in this market.

ReadyTech expects the incremental cash margin from its active growth initiatives to drive operating leverage and margin expansion in the second half of FY25 and beyond.

ReadyTech is well positioned for an inflection point, with confidence in its unprecedented Education & Work Pathways and Justice pipelines, supported by strong procurement activity to replace legacy systems. The company's expanded referenceability in Local Government, following the acquisition of CouncilWise, is expected to deliver accelerated cloud adoption and growth in this segment.