Atturra Limited (ASX: ATA) reported full-year FY26 revenue of $351.8 million, a 17% increase from $300.6 million in FY25, driven by growth in predictable revenue streams and acquisitions. However, underlying EBITDA declined 5% to $30.1 million, reflecting higher investment in AI capabilities and the Scholarion student information system.
Gross profit rose 15% to $117.4 million, but gross margins compressed to 33% from 34% in the prior year. Underlying net profit after tax fell 31% to $13.5 million, while statutory net profit turned negative at $21.7 million, impacted by $35.3 million in one-off charges including non-cash impairments and restructuring costs.
The company’s predictable revenue reached 78% of total revenue, exceeding its 75% target, with 51% recurring and 27% long-term client revenue. Revenue by sector was led by public sector (34%), financial services (29%), and energy and resources (11%).
Atturra’s Scholarion platform, now operating as a standalone business unit since July 1, 2026, is scheduled to complete all 12 modules by September 2026, with clients transitioning to the full suite ahead of the 2027 school year. The platform is expected to break even in FY28 and achieve meaningful profitability by FY29, with FY27 investment planned at $4 million.
Cash and cash equivalents declined 28% to $66.0 million, while borrowings increased to $29.4 million. Shares fell 7.5% to $0.37 following the presentation, closing at $0.38, near the bottom of the 52-week range of $0.35 to $0.85.
CEO Stephen Kowal highlighted the company’s focus on end-to-end AI operationalization, while CFO Kunal Shah noted the stability of gross margins despite investment pressures. Atturra reaffirmed guidance for record revenue, EBIT, and underlying EBITDA in FY27, with AI spending planned at $3 million.
