Atturra Limited reported a 17% increase in full-year revenue to $351.8 million for FY26, driven by a higher share of predictable revenue streams. The company’s predictable revenue reached 78% of total revenue in FY26, up from 58% in FY24, with recurring revenue accounting for 51% and long-term client revenue for 27%. However, profit margins came under pressure as underlying EBITDA declined 5% to $30.1 million, despite a 27% rise in second-half EBITDA to $22.8 million.
Gross margin compressed to 33% from 34% in FY25, while reported EBIT swung to a loss of $13.8 million from a $15.0 million profit a year earlier. A $22.8 million non-cash impairment of intangibles, primarily tied to legacy public sector advisory work, contributed to the decline. Underlying net profit after tax and amortization fell 31% to $13.5 million, and reported earnings per share turned negative at 5.88 cents, compared with a positive 2.60 cents in FY25.
The company incurred approximately $33 million in adjustments, including non-cash charges, M&A costs, and restructuring expenses. Capital deployment totaled around $25 million, primarily for share buybacks and acquisitions, while full-year operating cash flow stood at $9.1 million. Atturra ended the period with $66 million in cash on its balance sheet.
Revenue growth was supported by a 29% increase in cloud platform business revenue to $40 million, with more than 60 clients. The Scholarion education platform, now serving six contracted schools, remains a key growth initiative. All 12 Scholarion modules are scheduled for completion by September 2026, with a target of 20+ contracted schools by the end of FY27. Scholarion is expected to reach breakeven in FY28 and achieve meaningful profitability by FY29, though FY27 will see additional investment exceeding $4 million, with an anticipated loss of $2.4 million after capitalization.
Atturra’s CFO, Kunal Shah, noted that the underlying quality of the business remained stable despite margin pressures. CEO Stephen Kowal emphasized the company’s AI strategy, highlighting its end-to-end operational capabilities in data preparation, solution building, security, governance, and adoption support. Kowal also underscored a shift toward organic growth and process optimization following recent acquisitions.
The company’s revenue mix remained diversified, with the public sector contributing 34%, financial services 29%, and energy & resources 15%. No single customer accounted for more than 10% of group revenue, aligning with its client concentration policy.
