ReadyTech FY25 Revenue Climbs 7.1% with $15.4M in Enterprise Contracts
ReadyTech reported a solid 7.1% revenue increase in FY25, driven by $15.4 million in new enterprise contracts and a strategic push into AI-enhanced SaaS products. The company’s strong pipeline and AI initiatives set the stage for accelerated growth in FY26 and beyond.
- FY25 revenue up 7.1% to $121.8 million
- New business wins total $15.4 million, with $10.5 million in 2H FY25
- Recurring subscription revenue now 84.3% of total
- Significant AI product development underway
- FY26 revenue guidance of $132-135 million with $33.1 million pipeline
Steady Growth Amid Strategic Transition
ReadyTech Holdings Limited (ASX, RDY) has delivered a robust FY25 performance, posting a 7.1% increase in total revenue to $121.8 million. This growth reflects the company’s successful pivot towards enterprise SaaS solutions, particularly in education and workforce management sectors. Subscription revenue climbed 7.6% to $102.7 million, now representing over 84% of total revenue, underscoring the strength and stickiness of ReadyTech’s cloud-based offerings.
CEO Marc Washbourne highlighted FY25 as a foundational year, marked by $15.4 million in new business wins, including the company’s largest-ever Workforce Solutions contract. The second half of the year saw a surge in momentum, with $10.5 million in new contracts signed, signaling a positive trajectory after earlier challenges in the government segment.
Enterprise Momentum and Market Expansion
ReadyTech’s flagship products have gained significant traction across key verticals. Education & Work Pathways secured $6.6 million in new contracts, including breakthrough deals in higher education, while Workforce Solutions expanded into new sectors such as hospitals. The company’s net revenue retention rate of 102% indicates strong customer loyalty and successful upselling of cloud platforms.
Investment in growth remains a priority, with expenses rising 9.8% to $82.3 million. Notably, research and development accounted for nearly 30% of revenue, reflecting ReadyTech’s commitment to innovation. Sales and marketing efforts, representing 7.6% of revenue, are focused on accelerating adoption of flagship products.
AI Innovation as a Growth Catalyst
ReadyTech is aggressively advancing its AI capabilities, with seven AI initiatives underway. These include AI agents designed to enhance workforce management (Talent IQ), streamline education processes (Recognition of Prior Learning), and accelerate local government approvals (Planner Assist). This strategic focus on AI not only aims to improve customer productivity but also to unlock new revenue streams as these technologies scale.
Management’s confidence in AI’s transformative potential is evident, positioning ReadyTech to capitalize on the growing demand for intelligent, cloud-based solutions across its markets.
Outlook, Accelerated Growth on the Horizon
Looking ahead, ReadyTech projects FY26 revenue between $132 million and $135 million, supported by a strong $33.1 million enterprise pipeline. FY27 revenue is forecasted to reach $150-153 million, with cash margins expected to expand into the late teens percentage range. The company plans targeted incremental investments of $2.5 million in product capabilities, AI innovation, and go-to-market strategies to sustain profitable growth.
With a proven track record, expanding customer base, and products tailored to critical business needs, ReadyTech appears well-positioned to capture a larger share of enterprise opportunities in a rapidly evolving digital landscape.
Bottom Line?
ReadyTech’s blend of solid enterprise wins and AI innovation sets a promising stage for sustained growth, but execution risks remain as investments ramp up.
Questions in the middle?
- How quickly will AI initiatives translate into measurable revenue gains?
- What is the detailed outlook for the government segment’s recovery?
- How will increased expenses impact profitability in the near term?
