• Enterprise flagship revenue expansion, with mature portfolio headwinds moderating overall growth
• Cash EBITDA reflects ongoing investment into flagship products and incremental targeted investment across all segments
• Revised FY26 revenue target of $125-127 million, FY27 financial targets withdrawn

ReadyTech Holdings Ltd reported its half-year results, with enterprise flagship revenue expansion offset by headwinds in mature products. The company saw strong new flagship contracting activity, including a 10-year government contract with Skills Tasmania and a significant enterprise justice win with the Workplace Injury Commission in Victoria. However, challenging business conditions led to elevated churn and downgrades in mature products. The company's Education & Work Pathways segment saw investment underpinning future growth, while the Workforce segment delivered 12.1% revenue growth despite challenges in managed payroll services. The Government & Justice segment experienced limited revenue growth in Local Government, but a significant justice contract win. ReadyTech is focused on a strategy of simplifying, unifying and focusing its product portfolio, operating with speed and agility, and scaling its impact to drive sustainable enterprise growth and operating leverage. The company has sustained investment in R&D to advance its enterprise strategy, with a focus on improving product-market fit and referenceability. ReadyTech is also doubling down on its domain advantage by embedding AI capabilities into its flagship products. The company reported a revised FY26 revenue target of $125-127 million, but has withdrawn its FY27 financial targets due to protracted sales cycles and lengthy implementation timelines.

Revised FY26 revenue target of $125-127 million. FY26 underlying cash EBITDA margin expected to be low-mid teens.