The Catapult Group International (ASX: CAT) share price surged by 1.9% to $6.50 per share on Thursday morning. This comes after a turbulent month where the tech stock shed 10.2% following a trading halt ahead of a significant acquisition and capital raising. Despite this recent dip, Catapult’s shares have soared 58.4% over the past six months and an impressive 142.9% over the past year. Investors and analysts alike are now pondering whether this tech stock could be Australia’s next big unicorn.
Catapult is a global leader in sports data and analytics, providing real-time data to enhance athletes’ performance through wearable trackers and video analytics. The company boasts a client base of over 4,600 teams across 40 sports in more than 100 countries, underscoring its expansive reach.
Driving Forces Behind Catapult’s Growth
In the fiscal year 2025, Catapult experienced a robust 19% revenue increase, driven by an 18% rise in its Annualised Contract Value (ACV). The company has been strategically expanding its market presence through acquisitions, such as the mid-year purchase of Perch (Catalyft Labs, Inc). More recently, Catapult entered a trading halt to announce a binding agreement to acquire the German football intelligence platform IMPECT GmbH for approximately $139 million.
Beyond acquisitions, Catapult is committed to customer retention, boasting a 96% retention rate in its FY25 results. The company continues to secure new clients across soccer, baseball, and basketball, with customer lifetime duration increasing by 11% year-on-year to 7.8 years. Catapult’s “Rule of 40” SaaS score has also climbed to 31%, a tenfold increase from just two years ago, signaling enhanced operational efficiency and growth potential.
Path to Becoming a Unicorn
Catapult’s trajectory towards becoming a unicorn is bolstered by several factors. The shift from hardware sales to recurring software subscriptions has led to higher, more stable margins. As the sports tech and analytics market heats up, Catapult is poised to capitalize on the growing demand. The global sports tech market is projected to expand from US$6.60 billion in 2026 to approximately US$29.75 billion by 2034, with a CAGR of 20.63% from 2025 to 2034.
Catapult is well positioned to take a slice of that market.
Moreover, Catapult’s improving profitability and strategic acquisitions enhance its appeal as a potential acquisition target itself. The company’s focus on software as a service (SaaS) aligns with industry trends, providing a streamlined development process and feature enhancements.
Analyst Perspectives on Catapult Shares
Analysts at Bell Potter have recently upgraded Catapult shares to a buy rating, setting a price target of $7.50. This represents a potential 15.4% upside for investors over the next 12 months. The broker cited improved business valuation as a key reason for the upgrade.
Catapult’s growth story is compelling, with its strategic acquisitions and market positioning setting the stage for continued success. As the global sports tech market expands, Catapult is well placed to capitalize on new opportunities and solidify its status as a leading player in the industry.
As the company continues to innovate and expand, investors and industry watchers will be keenly observing Catapult’s next moves. With its strong foundation and strategic direction, Catapult Group International could indeed be Australia’s next big unicorn.
