Stepchange Holdings Limited (ASX:STH)

StepChange Holdings Limited presented its FY26 Half Year Results, highlighting a 19% increase in revenue, reaching $24.4 million, and a 50% growth in underlying EBITDA to $1.95 million. The company achieved this growth through organic expansion with Tier 1 enterprise clients, securing new contracts in the energy and government sectors, and early engagements with US clients. StepChange also completed the acquisition of BroadReach, enhancing its ICT capabilities and expanding opportunities for cross-selling. Their competitive strengths include proven SAP and cloud migration expertise, strong industry knowledge, and a scalable national platform with a focus on agile and collaborative delivery methods. The company is well-positioned to capture demand from SAP’s phase-out of its ECC on-premise by 2027, with opportunities for further growth in AI and digital services. StepChange maintains a strong cash position, supported by a $10 million Westpac acquisition facility, allowing for potential M&A activities to further expand its market presence.