Gentrack cuts FY26 earnings guidance, announces $20m share buyback
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The news: Utility-based CRM software Gentrack has downgraded its full-year revenue guidance to between $229 million and $238 million and has announced an on-market share buyback.
The numbers: The company expects recurring revenue in FY26 to grow by 10%, though non-recurring revenue is expected to be below FY25.
Full-year earnings before interest, tax, depreciation and amortisation (EBITDA) are now forecast to be in the range of $13.5 million to $20 million, while half-year EBITDA is expected to be around $7.8 million.
The context: Gentrack said the revenue downgrade is due to the company’s prioritisation of growth and global leadership over short term EBITDA, as it continues to invest in international expansion and product development.
The board also announced a $20 million on-market share buyback following the release of its half-year results scheduled for 18 May.
What they said: “The board’s current view is that a share buyback would be appropriate and accretive to shareholders, noting the programme is supported by a strong balance sheet and would not undermine the company’s ability to continue to fund organic and inorganic growth,” Gentrack chairman Andy Green said.
The source: ASX
