• Total revenue up 5.6% to $61.6 million
• Subscription revenue of $51.8 million, with recurring revenue at 84% of total
• Secured major government contracts with Skills Tasmania and Workplace Injury Commission

ReadyTech Holdings Limited (ASX:RDY), a SaaS provider of cloud-based software to the education, workforce, government and justice sectors, has announced its results for the six months ended 31 December 2025 (1H FY26). The company delivered total revenue of $61.6 million, an increase of 5.6% compared to the prior corresponding period. Subscription revenue rose 3.8% to $51.8 million, with recurring revenue now accounting for 84% of total revenue, reinforcing the strength of the SaaS model. ReadyTech secured a 10-year government contract with Skills Tasmania and a major Justice win with the Workplace Injury Commission in Victoria, demonstrating improved momentum. However, the company also faced headwinds in more mature segments, including elevated churn in managed payroll and SME Education, as well as the impact of the VETtrak cyber incident. Expenses increased 10% to $44.1 million, reflecting ReadyTech's targeted investment in capabilities to support future revenue growth. The company continued to invest 29.5% of revenue into Research & Development, focused on AI innovation to unlock next-generation customer value. ReadyTech's updated FY26 revenue guidance is $125-127 million, with FY27 targets withdrawn due to extended sales cycles and longer implementation timelines impacting the timing of P&L contribution.

FY26 revenue guidance of $125-127 million. Underlying cash EBITDA margins for FY26 are expected to be in the low mid-teens.

Enterprise demand remains strong across all segments, with substantial opportunity in the enterprise education space and momentum in Local Government as new customer and upgrade opportunities emerge. ReadyTech's targeted go-to-market investment over the past six months is already expanding the scale and quality of enterprise opportunities across Australia and New Zealand.