Also - in case it wasn't already obvious - the fact they're getting customers signing up to 3-5 year contracts, and paying $2M p.a. (as is clear from this release, given the $4.1M attributable to FY2025-26) tells you a lot about the quality of the product they're selling and thus the revenue they're generating.
This is mission-critical, high-value, differentiated stuff. In a market where every SaaS business trades off a double digit revenue multiple, it's kind of important to determine the quality of the revenue in terms of its duration as well as whether the business actually generates a profit - RUL's software division generates ~30% EBITDA margins, net of fully expensed software R&D, signing clients up to 3-5 year deals, and is achieving that despite having not even fully transitioned to the SaaS model.
Impressive stuff.
RUL Price at posting:
$1.31 Sentiment: Buy Disclosure: Held
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