Slides
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FY26 Results ASX:RDY 27 August 2026
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FY26 result was within revised guidance We are positive on the long-term future – our Victorian TAFE win validates education investment, and enterprise pipeline is strengthening We see AI as a structural tailwind to the services we provide our customers; through AI we will deliver new value to customers, and at a lower cost to serve In FY27, you will see the margin benefits of our cost optimisation program FY26 Results 2 Key takeaways We have conviction in our strategy, and believe cash margin is at a low point
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Contents FY26 Results 3 01 Summary performance 02 Our growth strategy 03 FY26 financial results 04 Outlook 05 Appendix
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Summary performance FY26 Results 4
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FY26 revenue of $125.0 million was within revised guidance of $125-127 million • Compounding strength in flagship products • Offset by weakness and churn in some of our mature products FY26 cash EBITDA margin of 12.6% consistent with revised margin guidance in the low-teens • Cash margin reached a low point in FY26, with enterprise investment peaking FY26 Results 5 FY26 financial result ^See slide 28 for further detail on the outlook. *Underlying EBITDA margin excludes changes in the fair value of contingent liabilities ($ 1.1m), integration, restructuring and cyber incident costs ($ 3.7m), technology advancement costs ($ 1.8m) and LTIP cost ($0.2m). **Underlying cash EBITDA includes actual lease payments and excludes labour capitalisation. $35.0m Underlying EBITDA* Underlying EBITDA margin of 28.1% (FY25: 32.5%) $15.8m Underlying cash EBITDA** Underlying Cash EBITDA** margin of 12.6% (FY25: 16.0%) $103.8m Subscription revenue Recurring revenue 83% $125.0m Total revenue Increase of 2.6%
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FY26 Results 6 Building a clearer, faster and stronger ReadyTech Management are focused on re-building foundations for growth and addressing our mixed recent performance FY26 What’s next Financial • Result within revised guidance • Improved balance sheet quality, including strengthened working capital discipline • Improved reliability and robust management of company performance Cost management • Cost management program enacted • $6.5 million annualised savings since January 2026 • Further $3.3 million annualised cost savings to be realised in FY27 • Operating model optimisation offsetting investment in AI Capital allocation • Product portfolio assessed on a Rule of 40 framework • Product R&D investment decisions optimised • Cost base of underperforming products right-sized • Some portfolio products may be exited • Intend to return any excess capital to shareholders
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FY26 Results 7 ReadyTech is a structural winner with AI AI is both a significant re-investment opportunity and an efficiency driver to structurally transform our organisation Why? 01 Chosen verticals with deep regulatory and compliance moats 02 Core system of record and data ownership with thousands of edge cases 03 Customer contract length and lifecycle Customer intimacy and regulatory oversight make us the natural, trusted partner to build our customers' AI Payback evidence Orqestra founding partner program (pilots) accelerating – wiring AI intelligence into our customer’s workflows AI engineering Super Squads increasing velocity^ ~3-4x AI Ops team driving AI efficiency across customer support and delivery Through AI we will deliver new value to customers, at a lower cost to serve ^Not all engineering squads will be Super Squads. Traditional squads will continue to have a place e.g. customer support and maintenance.
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FY26 Results 8 FY26 highlights and challenges Highlights Challenges Victorian TAFE common platform win – validating our tertiary education investment and strengthening pipeline AI-driven engineering efficiency – increasing development squad velocity^ by ~3-4x Launched Orqestra – AI-native segment-agnostic platform, with a cohort of founding partners refining revenue model Local Government – significant breakthrough with 5 customer upgrades to flagship product in July 2026 FY26 result – revenue growth and cash margin both at a low point Elevated churn – impacting mature products, particularly managed payroll services and SME education VETtrak cyber incident – remediation and customer restoration complete, enhanced security controls embedded across the Group Local Government – continued delivery challenges to unblocking the upgrade pathway ^Not all engineering squads will be Super Squads. Traditional squads will continue to have a place e.g. customer support and maintenance.
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FY26 Results 9 Education & Work Pathways Victorian TAFE win validates Education enterprise strategy with Work Pathways enterprise pipeline converting through a resilient renewal cycle 36.1 40.6 43.5 43.1 FY23 FY24 FY25 FY26 REVENUEEBITDA FY26 margin lower reflecting final push on Ready Student platform First University (Avondale) implementation on track, opening a pathway into the broader Higher Education market 2H Work Pathways enterprise wins (WISE, Salvation Army) delivered $1.9 million in new sales ACV Victorian TAFE win validates long -term investment in Education enterprise strategy, strengthening pipeline into FY27 Work Pathways converted its enterprise pipeline into major 2H wins with WISE and Salvation Army 15.9 18.5 19.3 19.0 FY23 FY24 FY25 FY26
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FY26 Results 10 Workforce 25.4% CAGR for flagship product Ready Workforce, driven by new logo wins, deeper vertical penetration and customer/module expansion Softer margins from early-year GTM and marketing investment 46 new logos acquired in FY26, including strategic enterprise wins in core verticals such as Kinetic (Transport & Logistics) AI adoption scaling rapidly – Screening Assistant now live with 80% of customers, reducing time-to-placement by 20%+ and supporting pricing uplift Increasing flagship momentum, with managed payroll services continuing to drag on segment growth REVENUEEBITDA 11.4 11.2 12.6 12.0 FY23 FY24 FY25 FY26 28.6 30.7 34.5 38.1 FY23 FY24 FY25 FY26
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FY26 Results 11 Government & Justice Significant Government breakthrough with first Ready Community upgrades delivered, systematically addressing backlog inefficiencies Government margin impacted by write-off of ageing debts and a number of segment leadership hires 5 upgrades completed under our new strategy in Q4 – the first customers fully migrated from legacy software onto Ready Community unblocking backlog of upgrade projects signed in 1H Workplace Injury Commission Victoria implementation progressing well, following the 1H enterprise contract win REVENUEEBITDA First customers migrated from legacy software suite onto Ready Community Justice continued the Workplace Injury Commission Victoria implementation 38.7 42.5 43.7 43.8 FY23 FY24 FY25 FY26 10.8 12.5 12.0 10.0 FY23 FY24 FY25 FY26
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Our growth strategy FY26 Results 12
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FY26 Results 13 How we will achieve growth and margin performance Sharpening our strategy for an AI-led, more disciplined ReadyTech in FY27 FY27 and beyond Clearer Simplify, unify & focus • Sharper portfolio – go all-in where we have the right to win, narrow where we don't • Enterprise-weighted customer base, with high clarity on ideal customer profile Faster Operate with speed & agility • AI embedded across engineering, product and delivery – lifting speed and quality • Launching AI-native products that open new revenue, not just new features Stronger Scale & impact • Capital allocation discipline sharpening our investment decisions • Deepening customer relationships to lift retention and expansion • Building an AI-native workforce for the next phase of growth In pursuit of sustainable enterprise growth and operating leverage
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FY26 Results 14 Enterprise pipeline High conviction gross pipeline momentum continues across all segments $30m $33.1m $35.3m $39.8m 1H FY25 FY25 1H FY26 FY26 $16.0m $23.8m Subscription Services Weighting to services reflects ‘heavy lift’ implementation of enterprise solutions – we are working on making this more efficient through AI Victorian TAFE win, plus other enterprise tenders contribute to an excellent education pipeline Local Government momentum shifting as a result of first-mover customers to cloud in each region Strong enterprise momentum continues across priority verticals, with a strengthened sales play driving improved migrations Education Government & Justice Workforce
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FY26 Results 15 Enterprise new business and major upgrades Our enterprise growth strategy revolves around both new business wins as well as major transformational customer upgrades $8.7m $9.3m First year subscription Services Vast majority of FY26 signed contract implementations are now underway, with subscription revenue start dates ranging from immediate to FY28 Services revenue is a leading indicator to unlocking incremental subscription revenue Typical implementation timeframes vary from 90 days to 18 months across our segments $18.0m New enterprise contracts and major upgrades signed in FY26 FY26 new contract wins
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FY26 Results 16 R&D investment has peaked Growth investment cycle has peaked, with engineering transformation now complete and R&D set to reduce across both maintenance and growth in FY27 In FY26, ReadyTech undertook a major engineering transformation • Consolidated 11 outsourced engineering service providers into a single offshore centre of excellence • Expect cost and efficiency benefits in FY27 R&D and engineering investment underpinned our flagship product suite, validated through the Victorian TAFE win • However, FY26 marked the peak of our enterprise strategy investment R&D spend moderating in FY27 through a combination of product maturity cycle, headcount reduction and AI productivity benefits 16.4 15.7 18.3 17.9 18.0 19.0 17.7 17.2 FY23 FY24 FY25 FY26 Growth R&D Maintenance R&D 33.3% 28.1%29.6%30.5% % of revenue
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FY26 Results 17 ReadyTech’s software portfolio mix Flagship product progress is steady and directionally strong, offset by mature product churn Software portfolio is a mix of flagship and mature products • Our strategy is to harvest our mature products, focusing on growing flagship through new logo wins, AI upsell and migrations Mature products accounted for 67% of FY26 dollar churn • Proactive initiatives and migration programs implemented to address elevated churn 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0 FY23 FY24 FY25 FY26 Mature products Flagship products Total revenue ^Flagship subscription revenue is growing faster than total revenue presented in chart, a CAGR of 13.2%, led by Ready Workforce (25.4%) and Ready Student (21.8%)
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FY26 Results 18 Product spotlight – Ready Student Realising the enterprise investment and strategy with significant Victorian TAFE win Uniquely cloud-native, enterprise-grade student management for tertiary education, co-designed with early Victoria TAFE customers State-wide Victorian TAFE win validates our investment following competitive tender process 21.8% 3-year total revenue CAGR 36% Increase in users over 3 years FY26 Responded, preferred, signed contract FY27 Victorian TAFE engagement, plan transitions Beyond Multiple TAFEs with desire to move and implement TAFE’s covered by VIC TAFE common platform agreement^ ^In addition to the 11 TAFE institutes included in this agreement, a further 4 Victoria dual sector providers are able to procure ReadyTech software under this agreement.
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“We weren't looking for another AI tool bolted onto the side – we needed something that understood Ready Student, and how UNSW actually uses it, securely and from the inside. Being able to just ask, and start turning that into a real playbook, changes who's able to do the work. The value really started to show up as our power users grew.” David Hull, Head of IT UNSW College FY26 Results 19 Orqestra – our major AI product release A new intelligence layer to automate complex work inside customers’ existing systems Orqestra is ReadyTech's enterprise AI platform, built directly into all our systems It connects AI, organisational knowledge and customer data, while keeping the system of record at the centre Pilot programs informing revenue model which is likely to be consumption-based 33 Live integrations >5,000 Tasks executed ISO 42001 AI compliant Founding partner program customers include:
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0 100 200 300 400 500 600 700 800 900 FY26 Results 20 Adoption of AI driving operational efficiency Compounding gains across engineering, product and operations ENGINEERING SUPER SQUADS AI OPERATIONS 85%+ drafted by AI Customer experience AI drafts the majority of support responses, resolving enquiries faster and refining our knowledge base from every interaction Early stage Customer onboarding AI delivery frameworks are cutting time -to-value in onboarding, freeing teams to spend more high value time with customers Product Planning accuracy AI-harness built to expand ticket backlog and shape tickets to AI-development requirements, cutting cycle time ~3-4x velocity increase^ Education segment development squads Our Education squads were the first to move to Super Squad structure, with dramatic improvements in software development velocity. Note: Productivity measured by story points completed per sprint. Super Squad commencement Coding agent step change Education engineering sprints CY26 ^Not all engineering squads will be Super Squads. Traditional squads will continue to have a place e.g. customer support and maintenance.
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FY26 financial results FY26 Results 21
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Growth slowed in FY26, with revenue impacted by project backlog and mature product churn Revenue ($m) 84.3 95.4 102.7 103.8 19.0 18.4 19.1 21.2 FY23 FY24 FY25 FY26 Subscription revenue Services revenue A number of enterprise customers continue to progress towards implementation and are not yet being recognised in the subscription revenue base FY26 Results 22
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FY26 Results 23 Underlying cash EBITDA FY26 cash margin was a disappointment, and our enterprise investment cycle has peaked; cost saving exercise implemented in 2H through to FY27 Cash margin reached a low point in FY 26 In 2H FY26, we commenced a cost management program • 62 roles removed to date • $6.5m annualised cost savings realised We expect this cost management program to continue in FY27, with a further $3.3m annualised cost saving to be realised FY25 underlying cash EBITDA Increased revenue BAU cost inflation Strategic incremental investment FY26 underlying cash EBITDA 16.0% 12.6% $3.2m $(4.0)m $15.8m $(2.9)m$19.5m 16.0% 12.6%
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FY26 Results 24 Segment financials Education & Work Pathways growth constrained by lower services and implementation revenue; these large implementations will be ongoing through FY27 Workforce strong revenue growth largely coming from Ready Workforce flagship product Government & Justice stable revenues but weaker margin driven by new investments in segment leadership EDUCATION & WORK PATHWAYS WORKFORCE GOVT & JUSTICE GROUP REVENUE (in millions) FY26 $43.1 $38.1 $43.8 $125.0 FY25 $43.5 $34.5 $43.7 $121.8 % change (0.9%) 10.4% 0.2% 2.6% EBITDA* (in millions) FY26 $19.0 $12.0 $10.0 $41.0 FY25 $19.3 $12.6 $12.0 $43.9 % change (1.6%) (4.7%) (16.7%) (6.6%) EBITDA MARGIN (%) FY26 44.0% 31.5% 22.9% 32.8% FY25 44.4% 36.5% 27.5% 36.0% % change (0.4)% (5.0%) (4.6%) (3.2%) *Segment EBITDA excludes actual lease payments and group corporate cost.
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FY26 Results 25 Strong balance sheet providing the financial capacity to grow Focused debtor management and collections activity drove 108% cash conversion in FY26 A slight deterioration in leverage metrics was a result of the investments we made through FY26 – balance sheet remains conservative and delivers significant financial flexibility 1.01x 1.00x 30 Jun 2026 30 Jun 2025 Net debt/EBITDA 8.83x 11.04x 30 Jun 2026 30 Jun 2025 Interest cover ratio NET DEBT AS AT 30 JUNE 2026 $ MILLIONS 30 JUNE 2026 30 JUNE 2025 Bank debt 60.0 56.0 Bank guarantee 1.5 1.3 Cash and cash equivalents (27.5) (19.7) Adjusted net debt 32.5 36.3 Cash conversion 108% 85%
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FY26 Results 26 Approach to capital allocation Rule of 40 governs portfolio decisions Rule of 40 (today and expected future) informs portfolio fit and strategic alignment Our best performing products will continue to attract investment, guided by a ROI based framework Cost management is capital allocation Engineering effort re-weighted toward products with strongest returns AI tooling embedded across engineering and service delivery, lifting output per person Non-people costs addressed – third-party software, contractors, hosting, and property Actions substantially taken in FY26, benefit is realised progressively through FY27 and is reflected in our FY27 outlook Rule of 40 framework – investing where returns are strongest, right-sizing where they are not – underpins margin expansion in our FY27 outlook We believe a disciplined approach to capital allocation is aligned to maximising shareholder returns over time.
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Outlook FY26 Results 27
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FY26 Results 28 FY27 outlook Revenue guidance of $128-132 million Underlying cash EBITDA margin of 15-17% • With further improvement into FY28 as benefits annualise *Underlying EBITDA margin excludes changes in the fair value of contingent liabilities ($1.1m), integration, restructuring and cyber incident costs ($3.7m), technology advancement costs ($1.8m) and LTIP cost ($0.2m).
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Investment proposition Next generation, mission-critical vertical software crafted to closely meet customer needs across human-led sectors and support communities at scale FY26 Results 29 Opportunity to acquire high value, enterprise customers with substantial tech budgets & accelerating customer references and reputation Building strong moats with best-in-class, market leading products in complex, regulation-heavy sectors Large addressable and defensive markets with continuing movement to cloud, digital transformation and AI Vertical SaaS model serving core industries with scalable, configurable platforms leading to operating cost leverage over time ReadyTech is executing a growth strategy focused on flagship products Services are deeply embedded into customers’ workflows
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For more information: Natalie Miller Investor Relations t. +61 422 436 787 e. investorrelations@readytech.io About ReadyTech ReadyTech is a leading SaaS provider of next generation cloud and AI software for the education, employment services, workforce management, government and justice sectors. Bringing together the best in people management systems – from students and apprentices to payroll, employment services and community engagement – ReadyTech creates technology that helps its customers navigate complexity, while also delivering meaningful outcomes. To learn more about ReadyTech's people-centric approach to technology, please visit readytech.io.
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Appendix FY26 Results 31
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FY26 Results 32 P&L overview $ MILLIONS FY26 FY25 YoY % change Subscription revenue 103.8 102.7 1.1% Implementation, training, consulting revenue 21.2 19.1 11.0% TOTAL REVENUE 125.0 121.8 2.6% Total expenses (90.0) (82.3) 9.4% *Underlying EBITDA 35.0 39.5 *Underlying EBITDA margin 28.1% 32.5% LTIP (0.2) 0.2 (200.0)% Depreciation and amortisation (20.3) (12.3) 65.0% Amortisation of acquired intangibles (10.4) (12.3) (15.4)% Net finance expenses (3.8) (3.4) 11.8% Underlying income tax expense (effective tax rate = 27%) (0.1) (3.0) (96.7)% *Underlying NPAT 0.2 8.7 (97.7)% Amortisation of acquired intangibles (post-tax) 7.3 8.6 (15.1)% *Underlying NPATA 7.5 17.3 (56.6)% **Underlying cash EBITDA 15.8 19.5 **Underlying cash EBITDA margin 12.6% 16.0% *Underlying EBITDA margin excludes changes in the fair value of contingent liabilities ($1.1m), integration, restructuring and c yber incident costs ($3.7m), technology advancement costs ($1.8m) and LTIP cost ($0.2m). **Underlying cash EBITDA includes actual lease payments and excludes labour capitalisation.
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FY26 Results 33 Balance sheet 30 JUN 2026 30 JUN 25 VARIANCE $ MILLIONS $ MILLIONS $ MILLIONS % Assets Cash and cash equivalents 27.5 19.7 7.8 39.6% Trade and other receivables 9.3 11.1 (1.8) (16.2)% Property, plant and equipment 1.4 2.0 (0.6) (30.0)% Lease right-of-use assets 3.2 3.9 (0.7) (17.9)% Contract assets 7.6 3.7 3.9 105.4% Prepayments 2.5 3.2 (0.7) (21.9)% Intangible assets 190.9 201.3 (10.4) (5.2)% Deferred tax assets 12.3 4.3 8.0 186.0% Contract costs 0.7 1.3 (0.6) (46.2)% Total assets 255.4 250.5 4.9 2.0% Liabilities Trade and other payables 12.8 10.1 2.7 26.7% Derivative financial liability 0 0.2 (0.2) (100.0%) Lease liabilities 3.6 4.5 (0.9) (20.0%) Borrowings 59.9 55.9 4.0 7.2% Income tax payable 2.3 0.9 1.4 155.6% Contract liabilities 27.8 24.2 3.6 14.9% Provisions 0.7 0.7 - - Employee benefits 8.8 8.3 0.5 6.0% Contingent consideration 4.7 4.0 0.7 17.5% Total liabilities 120.6 108.8 11.8 10.8% Equity Issued capital 221.9 221.9 - - Reserves (84.0) (82.1) (1.9) 2.3% Retained profits (3.1) 1.8 (4.9) (272.2)% Total equity 134.8 141.7 (6.8) (4.8)%
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FY26 Results 34 Cash flow 30 JUN 26 30 JUN 25 VARIANCE FAV/(UNFAV) $ MILLIONS $ MILLIONS $ MILLIONS % Cash from operation Receipts from customers 137.5 129.3 7.8 6.0% Payments to suppliers & employees (104.3) (98.8) (5.1) 5.2% Interest received 0.0 0.0 0.0 0% Interest and other finance costs paid (3.5) (3.0) (0.5) 16.7% Income taxes paid (5.1) (3.5) (1.6) 45.7% Total cash from operations 24.6 24.0 0.6 2.5% Investing Payment for purchase of subsidiaries, net of cash acquired - (3.9) 3.9 (100.0)% Payments for contract costs (0.2) (0.5) 0.3 (64.4)% Payments for property, plant and equipment (0.2) (1.0) 0.8 (80.0)% Payments for intangibles (18.6) (19.0) 0.4 (2.1%) Payment for contingent consideration (0.3) (14.0) 13.7 (97.9)% Payment for acquisition costs (0.1) 0.1 (100.0%) Total investing (19.3) (38.5) 19.2 (49.9)% Financing Repayment of lease liabilities (1.6) (1.7) 0.1 (5.9%) Proceeds from loans 4.0 14.0 (10.0) (71.4%) Total financing 2.4 12.3 (9.9) (80.5%) Cash movement 7.7 (2.1) 9.9 (460.0)% Cash and cash equivalents at the beginning of the financial half-year 19.8 21.9 (2.1) (9.8)% Cash and cash equivalents at the end of the financial half-year 27.5 19.8 7.7 39.2%
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FY26 Results 35 Disclaimer This presentation has been prepared by ReadyTech Holdings Limited for professional investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial produ cts. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment objectives, financial situation or pa rticular need of any particular person. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the i nformation, opinions and conclusions contained in the presentation. To the maximum extent permitted by law, none of ReadyTech Holdings Limited, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault. In par ticular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonabl eness of any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guar antee of future performance. The distribution of this document in jurisdictions outside Australia may be restricted by law. Any recipient of this document outside Australia must seek advice on and observe such restrictions.