• FY26 revenue expected between $229m to $238m, lower than previous guidance
• Recurring revenue to grow over 10% to around $174m, non-recurring revenue lower than FY25
• Prioritizing growth and global leadership over short-term EBITDA

Gentrack Group Ltd (NZX/ASX: GTK) has provided a trading and guidance update for FY26. The company expects FY26 revenue to be between $229m to $238m, lower than its previous guidance. Recurring revenues in FY26 are expected to grow by more than 10% to around $174m, while non-recurring (NRR) revenues will be lower than FY25. Gentrack expects H1 revenue to be around $110m, of which $85m is recurring. The company stands by its medium-term revenue target of more than 15% CAGR, based on its pipeline and the market opportunity in both Utilities & Veovo. Gentrack has made the strategic decision to prioritize growth and global leadership over short-term EBITDA, continuing to invest in international expansion and product development. For new customer wins and upgrades, the company is transitioning its business model to drive higher recurring revenue and lower cost for customer onboarding. In FY26, Gentrack expects full-year EBITDA to be between $13.5m and $20m, and H1 EBITDA to be around $7.8m, excluding acquisition costs. The company expects margins to improve to its medium-term target of 15% to 20% EBITDA margin (after expensing all development costs) due to strong recurring revenue growth. The Gentrack Board has also advised its intent to undertake an on-market share buyback of up to $20m, or 5% of the company's shares, over a 12-month period, subject to market conditions.

FY26 revenue expected between $229m to $238m, with recurring revenues expected to grow over 10% to around $174m. FY26 EBITDA expected between $13.5m and $20m.

Gentrack stands by its medium-term revenue target of more than 15% CAGR, based on its pipeline and the market opportunity in both Utilities & Veovo. The company expects margins to improve to its medium-term target of 15% to 20% EBITDA margin.