Investment Case Summary
- Q4 revenue of A$15m annualises to A$60m, signalling StepChange exits FY26 already running above its full-year print.
- Margins improved through the year, with Q4 EBITDA margin reaching 10% on stronger utilisation and engagement mix.
- Hiring Woodside's former CIO as COO is unusually senior for a A$55m revenue business and points to scale-up ambitions.
Normalised EBITDA of A$5m and a senior operator joining day one of FY27 reshapes the scale-up story
StepChange Holdings Limited (ASX:STH) has used its first full year on the ASX to do what most small-cap IPOs promise and few actually deliver. The Company guided to FY26 revenue above A$55 million and normalised EBITDA of A$5 million, with a particularly strong June quarter pulling in over A$15 million of revenue and A$1.5 million of EBITDA on its own.
For an SAP-focused consulting business that listed less than 12 months ago, that final quarter run-rate is the more interesting number. Annualise it and you get a business already operating well above the FY26 print, which is the kind of exit velocity investors usually have to wait two reporting cycles to see.
Layered on top is the appointment of Giuseppe (Pino) Todesco as Chief Operating Officer from 1 July 2026. He arrives directly from the Chief Information Officer role at Woodside Energy, where he ran technology services for roughly 12,000 users and led the post-BHP Petroleum digital integration that delivered more than US$75 million a year in synergies. That is a serious operator joining a A$55 million revenue business.
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The Q4 run-rate is the number that actually matters
Reporting A$55 million in annual revenue is the headline, but the June quarter is where the signal sits. A$15 million of quarterly revenue annualises to roughly A$60 million, which means StepChange is closing FY26 already running ahead of its full-year print.
Margins are moving the right way too. Q4 EBITDA of A$1.5 million on A$15 million revenue is a 10% margin, compared with the implied 9% normalised EBITDA margin across the full year. Management has flagged utilisation, delivery mix and higher-value engagements as the drivers, and the numbers support the story.
The skeptical read is that one strong quarter does not make a trend, and Q4 in consulting often benefits from year-end project closures. We would want the September quarter to confirm the trajectory before extrapolating too aggressively into FY27.
Why hiring a Woodside CIO into a A$55m revenue business matters
Todesco’s CV is not the kind of CV you usually see joining a microcap consulting roll-up. Running global digital and operational technology for Woodside, then delivering a multi-jurisdictional integration program after the BHP Petroleum merger, is exactly the type of work StepChange is selling to its Tier 1 clients.
There are two ways to read this hire. The optimistic read is that Todesco saw something in the StepChange platform that justified leaving a major energy company. The cynical read is that COO appointments at this scale often signal an upcoming acquisition pipeline that needs senior integration capability.
Either way, his background in enterprise architecture and cloud transformation lines up neatly with the SAP migration and ICT advisory work driving the FY26 growth. The next 12 months should reveal whether he is here to scale the existing business or to absorb another one.
BroadReach is starting to earn its keep
The BroadReach acquisition completed during FY26 contributed to the revenue step-up, although the Company has not separated organic from acquired growth in this update. That breakdown will be a key item to watch when the audited results land in late August 2026.
What we can say is that the advisory capability expansion has held margins steady rather than diluting them, which is unusual for an integration in its first year. Most consulting roll-ups go through a margin trough before the synergies arrive.
The Investors Takeaway for StepChange Holdings
The investment debate from here is straightforward. If the A$15 million quarterly revenue run-rate holds, StepChange enters FY27 with a path to around A$65 million in revenue without needing heroic assumptions, and a senior operator now in place to manage the scale-up.
The risks are equally clear. Consulting revenue is lumpy, Tier 1 enterprise budgets can pause, and a new COO will take a quarter or two to settle. The August audited numbers and the first FY27 quarterly will be the proof points that decide whether the current momentum is structural or seasonal. Readers can find more in-depth coverage of ASX-listed technology consulting names at stocksdownunder.
