Breville's expansion outpaces profit growth
Breville Group (ASX: BRG) now competes globally in premium kitchen appliances, with home coffee machines a particular strength. Its expansion combines entry into new markets with efforts to persuade existing customers to buy more sophisticated machines. Citi rates the shares a buy with a $40.80 price target.
The company's newer direct markets show how that strategy is developing. Combined constant-currency revenue from China, South Korea, Mexico and the Middle East increased 74% in FY26. In its first full financial year selling directly in China, Breville generated 7.1 times the revenue of its previous distributor. Revenue in the Middle East reached 6.6 times the prior distributor's level.
For the year ended June 30, 2026, Breville posted record sales of AUD 1.81 billion. Global revenue increased 9.7% at constant exchange rates, compared with reported growth of 6.7%. Profit rose much more slowly: net profit after tax increased 1.7% to AUD 138.1 million, while earnings before interest and taxes, or EBIT, edged up 1.2% to AUD 207.0 million. The results report attributed the modest profit growth to investment in new markets, retail partnerships and technology. Shares fell 3.11% to $32.07 on August 19, the day of the results, and Breville issued no formal FY27 guidance.
Breville also said its manufacturing diversification was substantially complete in FY26. Following shifts to Mexico and Southeast Asia, sources outside China accounted for 85% of gross profit dollars associated with its 120-volt products. The move was intended to reduce exposure to US tariffs.
In September 2026, Breville introduced an NFC, or near-field communication, coffee experience spanning 40 countries, 17 machines and 17 languages. Development took about eight months and used AI for user-experience design, recipe production and translation as part of the company's AI transformation program.
Catapult adds teams and increases spending per customer
Catapult Sports (ASX: CAT) sells technology that professional sports teams use to assess players, manage training workloads and inform lineup and tactical decisions. Alongside adding customers worldwide, it is broadening what it sells to existing teams through video analysis, scouting and athlete monitoring products. Bell Potter has a buy rating and a $4.65 price target.
Annual contract value, or ACV, reached US$133.8 million in the year ended March 31, 2026, an increase of 28% at constant exchange rates. Excluding ACV acquired through Perch and IMPECT, growth was 18%, according to The Motley Fool Australia's account of the results. Catapult added 576 professional teams during the year. Average ACV per professional team rose 10%, passing US$30,000 for the first time, while customer retention exceeded 96%.
Management EBITDA increased 67% in FY26. Catapult finished the year with more than US$53 million in cash and no net debt, and generated US$6.5 million in free cash flow excluding acquisitions and transaction costs.
For FY27, management expects ACV to keep growing strongly, customer churn to remain low, margins to improve and free cash flow to increase. Those expectations are consistent with its "Rule of 40" software-as-a-service efficiency targets.
SiteMinder builds revenue from its hotel network
SiteMinder (ASX: SDR) provides tools for hotels to coordinate room availability, rates and bookings across online travel platforms. Its approximately 56,000-hotel customer base gives it an opportunity to sell additional pricing and distribution services rather than depend entirely on attracting new hotels. UBS rates the shares a buy with a $6.85 price target and believes they could more than double in value.
Adoption of those services increased in FY26. Dynamic Revenue Plus covered more than 50,000 rooms, over twice its first-half level. Channels Plus ended the year with almost 10,000 hotels, up from 7,000 in the first half. Transaction revenue increased 34% on a constant-currency, organic basis. SiteMinder added a net 5,900 properties to reach 56,000, while average revenue per user rose 9.3% on the same basis to $429.
For the year ended June 30, 2026, annual recurring revenue, or ARR, reached $313.7 million, up 24.1% in constant-currency, organic terms. Revenue was $266.1 million, representing growth of 22.0% on that basis and 18.6% as reported, according to the company's FY26 earnings release.
Adjusted EBITDA nearly doubled to $28.1 million, with the adjusted EBITDA margin widening by 419 basis points to 10.6%. Adjusted free cash flow also more than doubled, reaching $10.5 million. SiteMinder remained loss-making on a reported basis, although its net loss narrowed from $24.5 million in FY25 to $11.3 million.
SiteMinder expects a meaningful expansion in its adjusted EBITDA margin in FY27, alongside ARR growth in the 20% range that supports continued strong constant-currency, organic revenue growth. Its longer-term targets call for an adjusted EBITDA margin in the mid-20% range in FY30 and an ARR compound annual growth rate in the 20% range between the close of FY26 and the close of FY30.
