RAS Technology (ASX:RTH) outlined a first-half FY2026 period marked by rapid top-line growth, continued investment in product and personnel, and a focus on expanding its global wagering technology and racing data footprint, according to management comments during the company’s investor webinar.
First-half financial highlights
Chief Financial Officer Tim Olive said first-half revenue rose to AUD 13.9 million, up 38% from the prior corresponding period, citing broad-based growth across the business and the contribution from the Hong Kong acquisition, which was not included in the prior-year first half.
Olive reported annual recurring revenue (ARR) of AUD 24.6 million at the end of the half, up 34% year over year and about AUD 3 million higher than the last reported figure. He also highlighted an additional AUD 3 million in repeatable revenue from Asian B2C publication sales, which he said brings the recurring revenue “exit rate” to AUD 27.6 million at the end of H1.
Cash at the end of the period was AUD 4.4 million, described as down slightly due to investments in major growth areas. Olive said normalized cash flow from operations was a positive AUD 800,000, slightly better than the prior period.
Segment and regional performance
Olive said the company’s investments in wagering technology and Asia have supported diversification by jurisdiction and contributed to ARR growth.
- Enhanced Information Services: ARR increased 17% to AUD 14.7 million, which Olive described as continued strong growth in the most mature segment.
- Wagering Technology: ARR rose 67% year over year to AUD 7.5 million, which management characterized as the highest-growth segment.
- Digital publications, media, and other: The segment grew, supported by the Asian acquisition coming online in FY2025 and additional revenue related to the Mauritius Turf Club (MTC) arrangement, according to Olive.
Regionally, Olive said the U.K. continued to grow strongly, with ARR up 49% year over year to AUD 8.5 million. He also said Asia now represents 7% of total ARR, excluding the additional AUD 3 million of repeatable B2C publication sales.
Investment for growth and product development
Managing Director and CEO Stephen Crispe said the first half featured “heavy lifting” in investing for sustained growth, including investment in the RAS Asia business, U.K. team expansion, global trading capabilities, and platform and product development. Management emphasized initiatives aimed at automation, platform enhancements, use of artificial intelligence, and “right-sizing” the organization for scale.
Olive said wagering technology investment has resulted in the company having a proprietary full trading suite, including NTS, trading platforms, and the BetBridge product. He also said Asia-focused investment supported the development of a new international simulcast product and ongoing modernization of IT platforms.
Commercial updates: LeoVegas, BetBridge, and Mauritius Turf Club
Management highlighted several customer and product developments during the half. Crispe referenced deployments and relationships including QuinnBet on the Playbook Engineering platform, a partnership with Stakemate, onboarding Best Odds, expansion with a tier-one client for trading services, and the previously announced Stake deal that will end in May.
Crispe described the LeoVegas Group agreement as a “milestone international agreement” won through a competitive tender process and expected to go live mid-year 2026. He said Racing and Sports will deliver a “full integrated racing service” for brands including BetMGM U.K. and BetUK, calling it a step forward in establishing the company as a tier-one global racing NTS provider and an independent alternative to incumbent providers.
In the Q&A, Crispe said the LeoVegas deal has the capacity to be “as big” as the Stake contract. Olive added that the Stake deal involved paying away a significant portion of revenue to a trading partner, while LeoVegas is delivered fully by Racing and Sports, meaning the company expects to retain “basically all of that revenue.” Olive said that from a bottom-line perspective, the LeoVegas impact is expected to be “likely equal to or greater than” the loss of the Stake deal once it reaches run rate.
Crispe also announced the market launch of BetBridge, described as a fully managed, embedded racing product designed for rapid deployment, including full-service management from front-end UX/UI through betting, trading, and resulting. He said Fairplay Exchange in the U.K. is the first BetBridge customer and has been operational for several months.
On the Mauritius Turf Club, Crispe said the first season was successful and the technology platform continues to evolve beyond the initial MVP. He outlined ongoing work across race day office systems, database management, handicapping, retail and fan engagement solutions, tote systems and vision feeds, fixed odds trading capabilities, and potential syndication and import/export of racing content.
Asia: seasonality, simulcast product, and outlook
Olive said the Hong Kong racing off-season (mid-July to early September) makes the first half “much quieter” for revenue and profit, and he expects RAS Asia results to strengthen in the second half. He said the business was tracking ahead of expectations in H1 despite the off-season and pointed to a leadership team led by Ronnie Tay.
Management said a new international simulcast product was introduced ahead of time and represents a new revenue source. Olive described it as a multi-channel strategy to promote international racing imported into Hong Kong, and said Hong Kong turnover creates a significant monetization opportunity for rights holders and for Racing and Sports.
Olive also said the company launched new digital assets in the region, including hkdnforum.com, and that traffic has been growing rapidly. Looking ahead, he noted racing is set to commence in mainland China in October 2026, which the company views as an opportunity to access a broader market and increase the number of race meetings feeding into Hong Kong.
During Q&A, Olive said cost growth should “slow significantly” after the first-half investment period, with efficiency projects expected to put “downward pressure on costs.” On funding and cash flow, he said seasonality means the first-half cash burn should not simply be annualized, and management expects a stronger second half. He added the company is open to strategic opportunities and would consider capital management in connection with any such initiatives.
Addressing share sales by the CEO, Crispe said shares were disposed of under the company’s long-term incentive plan to manage tax liabilities, adding that no other shares were disposed of and that executives remain committed to the company’s direction.
About RAS Technology (ASX:RTH)
RAS Technology Holdings Limited provides data, content, software as a service (SaaS) solution, and digital and media services to the racing and wagering industries in Australia, the United Kingdom, the United States, and internationally. It offers wholesale data, content distribution, wagering technology and services, specialist data, digital and media, and consulting and integrity services to racing and sports bodies and authorities, wagering operators, media and digital organizations, and retail and private clients.
