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Fund Manager Summary on Gentrack Group Ltd (ASX:GTK)
In November 2025, Wilson Asset Management commented that FY25 delivered solid top‑line and EBITDA growth and that new disclosure on a maturing customer pipeline materially improved visibility on future recurring revenue potential. Gentrack Group Ltd (ASX:GTK) is viewed by fund managers as a high‑quality provider of billing and customer management software to utilities and airports with clear structural tailwinds from global utility replatforming (including the SAP sunset) and a recently launched g2.0 product integrated with Salesforce that underpins a growing pipeline (reported as 10 qualified opportunities and ~30 million meter points) and the potential to meaningfully expand recurring revenue; recent FY25 results (NZ$230.2m, ~8% growth; EBITDA up ~18%) and customer wins such as Pennon and Utility Warehouse, plus Veovo momentum, support the growth thesis and medium‑term targets of >15% revenue CAGR and 15–20% EBITDA margins. However, managers also flag execution and market‑sensitivity risks: GTK is a lumpy, project‑heavy business with long sales cycles, recent customer losses and go‑live delays have weighed on sentiment, and management has at times withdrawn from unprofitable bids, highlighting competitive and contract‑profitability pressures. Actionable considerations for investors are to track pipeline conversion and go‑live referenceability (Genesis and others), monitor recurring versus non‑recurring revenue mix and margin recovery as operating leverage materialises, assess customer retention and contract profitability trends, and watch for catalyst events such as the next large contract closures or upgrades and any strategic M&A that could accelerate scale; recent fund manager commentary places greater weight on November 2025 evidence of a deeper pipeline and improving operational momentum while remaining cautious on near‑term sentiment volatility driven by implementation timing and competitive dynamics.
Commentary From The Managers
There are 21 insights from 9 fund managers regarding their investment in Gentrack Group Ltd (ASX:GTK) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Lakehouse Capital
30 Nov 2025
$9.24
Summary
- Lakehouse Capital initiated a position in Gentrack due to its strong performance, with a notable increase of 20.2% during the month.
- Gentrack provides essential billing software for energy and water utilities, alongside operational software for airports through its Veovo business.
- The global energy sector is evolving, presenting significant growth opportunities for Gentrack.
- The stickiness of Gentrack's solutions fosters durable customer relationships, contributing to a growing base of high-quality recurring revenue.
- Gentrack’s modern software stack, especially the newly launched G2, enhances its competitiveness for utility contracts.
- The G2 platform has the potential to become a significant player in global utility billing.
- In the most recent financial year, Gentrack reported an 8% increase in group revenue and a 13% rise in recurring revenue.
- The G2 pipeline currently includes 10 opportunities, covering around 30 million meter points across various jurisdictions.
- Since launching G2, Gentrack has secured two additional contracts, indicating strong market interest.
- The Veovo segment is performing well, achieving 15% revenue growth and maintaining a strong operational efficiency.
- Lakehouse Capital believes Gentrack is well-positioned to enhance revenue growth and transition towards more predictable recurring revenue, which may unlock margin expansion over time.
Tamim Funds Management
30 Nov 2025
$9.24
Summary
- Tamim Funds Management highlights Gentrack's successful transition in FY25 after launching G2 with Genesis, despite initial delays.
- FY25 revenue reached $230M, representing an 8% growth with a 12% margin.
- FY26 guidance indicates growth expectations of greater than 8%, with recurring revenue projected at +10% and Veovo at +15%.
- Potential for FY27 upside if 3–4 large deals are secured.
- The current pipeline includes 10 well-qualified opportunities, with 3 preferred, 3 shortlisted, and 4 positioned for 2026, aligning with current recurring revenue of approximately $130M.
- Non-recurring implementation revenue from these opportunities is estimated at ~2–3x recurring, exceeding $200M NRR.
- The go-forward strategy focuses on Salesforce integrations, partnerships with system integrators, regional sales reorganization for large tenders, a cautious M&A approach, and a revenue skew towards the second half of FY26.
- Tamim Funds Management anticipates contract wins in the next 6 months, which could positively impact stock sentiment.
Yarra Capital Management
30 Nov 2025
$9.24
Summary
- Yarra Capital Management believes Gentrack Group (GTK) is well positioned and continues to hold because of a strong FY25 operational performance, growing recurring revenue, meaningful new contract wins and management’s reaffirmed medium‑term targets.
- FY25 financials: Revenue of NZ$230.2m and EBITDA up 18%, demonstrating improving underlying profitability.
- Recurring revenue is an increasing contributor, supporting margin durability and more predictable cash flows as the business scales.
- New business wins underpin growth momentum — notably adoption of the g2 platform by Pennon Water Services in the UK, evidencing commercial traction in key verticals.
- Reaffirmed medium‑term targets: management remains committed to > 15% revenue growth and 15–20% EBITDA margins, signaling confidence in the growth and margin pathway.
- Market footprint: continued progress scaling the recurring‑revenue business and expanding presence across global utilities and airport markets supports a long‑term opportunity set.
- Investment thesis drivers: improving FY metrics, accelerating recurring revenue, demonstrable new customer wins and clear medium‑term targets together drive Yarra’s conviction to maintain the overweight position.
Wilson Asset Management
30 Nov 2025
$9.24
Summary
- Gentrack Group specializes in utility and airport enterprise software for billing, customer, and operations management.
- In November, Gentrack Group's share price increased following the release of its FY2025 results.
- Revenue rose by 8% to NZD230.2 million.
- EBITDA grew by approximately 18%.
- Net profit after tax more than doubled, driven by strong demand in both the utilities and airport sectors.
- New disclosures on the customer pipeline provided investors with better visibility on opportunities being progressed.
- This suggests that Gentrack Group could potentially more than double its existing recurring utilities revenue over time.
- The company aims for over 8% revenue growth in FY2026, excluding new-logo wins, and anticipates an acceleration to more than 15% growth in FY2027.
- Operating leverage is expected to contribute to margin expansion.
- An investor day showcased significant advancements in the technology stack, with the g2.0 product suite now available for new and existing customers.
Yarra Capital Management
30 Sept 2025
$8.87
Summary
- Yarra Capital Management believes Gentrack’s long-term growth remains intact and continues to hold because its high-quality platform, momentum in contract wins, and ability to expand customer relationships and enter new markets position it to recover from a recent client loss.
- Positioning: GTK is an overweight conviction as a utilities and airports enterprise software provider.
- Recent performance: The stock underperformed during the period, primarily due to the loss of an existing client.
- Growth drivers: The utilities billing sector benefits from structural tailwinds tied to the global renewable energy transition, supporting sustained demand for billing and operational software.
- Competitive strengths: Gentrack’s software platform is regarded as high quality and has demonstrated strong momentum in contract wins in recent years.
- Execution thesis: Upside depends on securing additional contract wins, expanding relationships with existing customers, and successful entry into new markets.
Ellerston Capital
31 July 2025
$9.75
Summary
- Gentrack (GTK AU) was a key detractor, declining 15%.
- GTK is a provider of billing software to utilities, aligning with a global shift to re-platform technology stacks.
- Ellerston Capital believes GTK's software capability and partnership with Salesforce position it well for new customer acquisition.
- The market is growing weary of waiting for new customer wins, as long sales cycles continue.
- Recent negative news includes a potential loss of a customer that represents 2-3% of revenue.
- GTK's first go live of its new G2 cloud stack was delayed, affecting its referenceability for future sales.
- Ellerston Capital continues to believe in the structural opportunity for GTK, but is awaiting contract wins to build conviction.
Wilson Asset Management
31 July 2025
$9.75
Summary
- Gentrack Group Ltd specializes in utility and airport enterprise software for billing, customer, and operations management.
- In July 2025, the company faced a decline in share price due to the loss of an Australian customer contract, influenced by management's decision to withdraw from the process over contract profitability concerns.
- This loss was deemed immaterial to revenue in the upcoming financial years but affected market sentiment regarding competition and contract retention.
- Despite the setback, the company has maintained its medium-term guidance, forecasting revenue growth exceeding 15% CAGR and an EBITDA margin of 15–20% after accounting for development costs.
- Wilson Asset Management believes Gentrack is well positioned to secure several contract opportunities soon, potentially leading to a re-rating.
Airlie Funds Management
30 June 2025
$11.53
Summary
- Airlie Funds Management notes that Gentrack released its 1H25 results, which were below market expectations.
- The headline numbers and FY25 guidance were relatively soft but deemed inconsequential to the long-term thesis.
- Gentrack is characterized as an inherently lumpy business due to significant project work related to client wins and implementations.
- Focus is placed on the trajectory of new client wins and upgrades instead of any single earnings result.
- In 1H25, Gentrack secured a new logo with Utility Warehouse, a strong player in the UK utility sector.
- The company entered into multiple scoping arrangements with new customers, indicating a strong likelihood of deal closures in 2H25.
- This positions Gentrack well for FY26.
- Despite the soft FY25 guidance, Gentrack’s share price increased by 14% over the quarter, reflecting positive sentiment.
- Overall, Airlie Funds Management continues to hold its position in Gentrack, reflecting confidence in its long-term potential.
Tamim Funds Management
31 May 2025
$11.47
Summary
- Gentrack Group (NZX/ASX: GTK) reported strong growth for the half-year ending 31 March 2025.
- Revenue rose 9.8% to $112m, with recurring revenue up 16.7% to $76.4m.
- EBITDA grew 5.1% to $13m, while statutory NPAT increased 34.7% to $7.2m.
- Cash reserves strengthened to $70.7m, up from $39.3m in H1 2024.
- In the Utilities segment, recurring revenues climbed 17%, although non-recurring revenues declined.
- Veovo, the airport technology arm, saw revenue rise 24%, driven by wins in the UK and Middle East.
- Gentrack continued product investment, including the rollout of g2.0 at Genesis Energy.
- Major contracts included Utility Warehouse in the UK and renewals in the UK, NZ, and Singapore.
- Veovo achieved significant milestones with deployments at airports in Edinburgh, Saudi Arabia, and London Gatwick.
- Despite global uncertainty, Gentrack sees continued transformation in the energy and airport sectors.
- It forecasts FY25 revenue of at least $230m and an EBITDA margin above 12%.
- Mid-term growth targets include greater than 15% CAGR revenue and a 15–20% EBITDA margin.
- Management hinted at significant contract wins over the next 3-6 months, which will be a catalyst for the next share price re-rate.
Tamim Funds Management
7 May 2025
$11.28
Summary
- Tamim Funds Management highlights Gentrack as a key player in the transition to clean energy through its software for utilities.
- The company is positioned at the forefront of energy sector digitisation, offering cloud-based billing and engagement solutions.
- A significant industry shift is occurring as legacy systems become obsolete, with many utilities needing to upgrade by 2027.
- Gentrack’s next-gen product, g2.0, is designed for modularity and integration with renewable systems.
- Financial forecasts indicate NZ$240 million in revenue and NZ$42 million in EBIT for FY25, showcasing strong earnings momentum.
- Recurring revenue is expected to rise to NZ$76 million, providing high earnings visibility.
- Gentrack is expanding its team, with 46 open roles, indicating preparation for growth and project delivery.
- Recent contract wins in the UK and partnerships with trusted consulting firms enhance Gentrack's market position.
- The company has a clean balance sheet with NZ$70 million in net cash, allowing for strategic acquisitions.
- Upcoming 1H25 results in May are anticipated to be a catalyst for re-rating, with focus on new contracts and revenue guidance upgrades.
- Tamim Funds Management sees Gentrack as a foundational player in the digitisation of utilities, aligning with long-term structural tailwinds.
- GTK is viewed as a solid investment opportunity for exposure to digital infrastructure in the utilities sector.
Airlie Funds Management
31 Jan 2025
$11.55
Summary
- Airlie Funds Management continues to hold a significant position in Gentrack, a global provider of enterprise software for utilities and airports.
- The Fund’s investment philosophy focuses on fundamental research to identify mispricings, with Gentrack being one of the largest holdings benefiting from the energy transition thematic.
- Gentrack has been a strong contributor to the Fund's performance since inception.
- For utility customers, Gentrack offers mission-critical software that manages customer information, billing, and energy management, resulting in low customer churn.
- Upgrading Gentrack's software is a significant project for utilities, costing between $50 million and $250 million and taking 12 to 24 months to implement.
- This long upgrade cycle effectively locks in customers for a decade, creating predictable revenue streams.
- Gentrack has been operational for over 35 years, demonstrating durability in a high-barrier industry.
- The energy transition is increasing the complexity of energy grids, creating opportunities for Gentrack and other specialist providers.
- In core markets like Australia, New Zealand, and the UK, Gentrack has gained market share from larger incumbents like SAP and Oracle.
- The management team, led by CEO Gary Miles, has a strong track record in enterprise software.
- Recent challenges in the UK market due to customer closures were viewed as temporary, leading to a purchasing opportunity at a low valuation.
- Gentrack has seen an 87% increase in 2024, supported by strong financial results and profit margin expansion.
- Despite trading at 33x FY25 EBITDA, profit margins remain below historical levels, suggesting potential for operating leverage.
- Airlie Funds Management sees compelling long-term value in Gentrack, maintaining it as a core holding in the Fund.
Airlie Funds Management
31 Dec 2024
$11.59
Summary
- Gentrack released a strong FY24 result, marked by 26% revenue growth and significant free cash flow generation.
- Underlying profit margin expansion indicates management's ability to restore profit margins to historical levels.
- Airlie Funds Management's investment philosophy focuses on fundamental research and identifying mispricings.
- Gentrack operates in the energy transition sector, providing enterprise software to utilities and airports.
- The company has been a strong contributor to the Fund's performance since inception.
- Gentrack’s software is mission-critical, leading to low customer churn due to high switching costs.
- Utility software upgrades are costly and take significant time, creating predictable revenue streams.
- Gentrack has been operational for over 35 years, showcasing durability in the software industry.
- The energy transition is increasing the complexity of energy grids, necessitating software upgrades.
- Gentrack has gained market share in Australia, New Zealand, and the UK, with significant opportunities ahead.
- CEO Gary Miles has an impressive background in enterprise software, enhancing Gentrack's management team.
- Recent customer closures in the UK were viewed as temporary, leading to the investment in Gentrack.
- Gentrack's stock rose 87% in 2024 following strong financial results, reinforcing the margin recovery thesis.
- Despite trading at around 33x FY25 EBITDA, profit margins remain below historical levels, indicating potential for operating leverage.
- Airlie Funds Management continues to see compelling long-term value in Gentrack, maintaining it as a core holding in the Fund.
Wilson Asset Management
30 Nov 2024
$12.90
Summary
- Gentrack Group is a technology provider to major energy and water companies.
- Reported full year results for 30 September 2024 with 25.5% year-on-year revenue growth.
- Growth driven by strong performance in utilities and airports divisions, exceeding market expectations.
- Wilson Asset Management remains positive on Gentrack Group and its future outlook.
- Company's strong cash position enables potential for earnings accretive acquisitions.
Firetrail Investments
30 Nov 2024
$12.90
Summary
- Gentrack Group Ltd outperformed following their FY 2024 result.
- Topline revenue was a 5% beat relative to market expectations.
- EBITDA (excluding non-cash long-term incentives) beat by 13%.
- Gentrack is well-positioned to benefit from energy and water utilities looking to re-platform.
- There is a solid contract pipeline in both existing and new markets.
- Firetrail Investments continues to hold because of these positive indicators.
Airlie Funds Management
30 June 2024
$9.43
Summary
- Gentrack was the Fund’s strongest performer over the year, contributing +6.8% to gross Fund performance.
- Gentrack provides customer billing software to the utility sector and customer management software to the airport sector.
- Airlie Funds Management likes businesses that sell ‘mission-critical’ enterprise software due to low customer churn.
- Low customer churn creates resilient, annuity-style revenues.
- Prior to purchase, Gentrack faced challenges with customer closures linked to regulatory issues in the UK, impacting profit margins.
- Airlie Funds Management viewed these issues as mostly temporary and increased their position on signs of improving revenue growth and margin recovery.
- Despite the stock's strong performance, Gentrack has significant growth potential as utilities upgrade systems for the energy transition.
- Profit margins are expected to return towards historical levels.
Forager Funds
30 June 2024
$9.43
Summary
- Forager Funds notes Gentrack (GTK) has shown strong performance in the utilities and airports software sector.
- Continued profit upgrades are attributed to a strong management team.
- Revenue forecasts for the financial year ending September 2024 have increased from $160 million to approximately $200 million.
- Gentrack has effectively introduced new products, such as g2.0 in partnership with Salesforce.
- Expansion into new markets includes contracts in Saudi Arabia and Singapore.
- New offerings and high-stakes implementation capabilities enhance Gentrack's growth potential.
- In response to substantial share price appreciation, Forager Funds has reduced its investment, cutting portfolio exposure by over half.
- Gentrack's share price has appreciated by 140% over the 2024 financial year, contributing 3.8% to portfolio performance.
Airlie Funds Management
31 Mar 2024
$7.90
Summary
- Airlie Funds Management highlights Gentrack as the Fund’s strongest performer, contributing +5.7% to gross Fund performance over the year.
- Gentrack is recognized as a global tech company providing customer billing software for the utility sector and customer management software for the airport sector.
- The Fund favors businesses that sell mission-critical enterprise software, noting low customer churn due to the high costs and disruptions associated with switching providers.
- This low churn results in resilient, annuity-style revenues for Gentrack.
- Prior to acquisition, Gentrack faced challenges from customer closures linked to regulatory issues in the UK, leading to reduced profit margins.
- Airlie Funds Management viewed these challenges as temporary and increased their position based on signs of improving revenue growth and margin recovery.
- Despite a strong performance, Gentrack is seen to have a long pipeline for growth as utilities modernize systems to adapt to the energy transition.
- Profit margins are expected to recover towards historical levels.
Forager Funds
31 Mar 2024
$7.90
Summary
- Forager Funds updates their investment thesis on Gentrack Group Ltd, a utilities software company listed on the ASX and NZX.
- Gentrack has experienced a fivefold share-price increase over the past 18 months.
- Its market capitalisation has risen from less than NZ$150 million to approaching NZ$1 billion.
- The company achieved a significant turnaround in profitability, moving from a NZ$3 million loss before tax in 2022 to a NZ$15 million profit in 2023.
- Forager Funds expects Gentrack’s profit to at least double over the next three years.
- Forager Funds continues to hold Gentrack due to its improved growth prospects and profitability.
Airlie Funds Management
31 Dec 2023
$6.20
Summary
- Gentrack released strong FY23 results with revenue growth of 35% and profit growth of 185%.
- Very strong free cash flow generation reported.
- Upgraded FY24 revenue guidance indicates robust underlying growth.
- Airlie Funds Management continues to like Gentrack for its ‘mission critical’ software, which is sticky and fosters resilient annuity-style revenues.
- Despite trading on a seemingly expensive earnings multiple, Gentrack is viewed as currently underearning.
- Profit margins are below historical levels; further expansion in these margins could drive strong earnings growth.
- Airlie Funds Management believes this potential growth justifies the current valuation of Gentrack.
Naos Asset Management
31 Dec 2023
$6.20
Summary
- GTK's FY23 results showed a revenue guidance upgrade for FY24.
- Underlying revenue growth exceeded 40% when excluding impacts from customer defaults.
- Two years ago, GTK shares were near $1, raising concerns about the need for significant investment.
- The current management has successfully improved GTK's market perception.
- G2.0 is a competitive offering with a strong implementation track record, evidenced by a recent deal with Genesis Energy.
- GTK has yet to experience a failed billing implementation, a critical success factor for enterprise software companies.
- Partnership with Salesforce enhances GTK's offerings by combining best-in-class billing and CRM functionalities.
- The market opportunity is significant, as many utilities are seeking to upgrade outdated billing systems to meet evolving consumer needs.
- GTK is no longer a core investment for Naos Asset Management, but it remains under close observation for future growth potential.
Naos Asset Management
30 June 2023
$3.91
Summary
- GTK's 1H FY23 results showed strong performance with management providing upgraded guidance.
- Share price increase from $1.25 in August 2022 to $3.86.
- Standout EBITDA of NZD $16 million, with a margin returning to 19%, exceeding management’s target.
- Net cash balance reported at $41.9 million, indicating strong financial health.
- Results driven by loyalty of legacy customer Bulb Energy, showcasing management's cost control and profitable growth.
- Management upgraded FY23 revenue guidance to $157-$160 million, expecting EBITDA around $22 million.
- GTK's expenses are fully allocated to R&D, providing an accurate cash earnings representation.
- Veovo division saw 27% revenue growth, indicating recovery and potential expansion.
- Management noted a pipeline that has more than doubled, reflecting increased demand in airports sector.
- Long-term focus on scaling Veovo business to enhance competitiveness and customer solutions.
- Renewable energy transformation presents a significant opportunity for GTK to upgrade utility billing platforms.
- Recent operations launched in South-East Asia expanding market reach after wins in Singapore.
- Key focus on upgrading existing clients to Gentrack 2.0 software platform for better efficiency.
- GTK has a strong track record in system implementations, which is appealing to risk-averse customers.
- Importance of having the right personnel and systems in place to manage new work effectively.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Gentrack Group Ltd (ASX:GTK)?
Fund managers including Naos Asset Management, Forager Funds, Airlie Funds Management, Firetrail Investments, Wilson Asset Management, Ellerston Capital, Tamim Funds Management, Lakehouse Capital and Yarra Capital Management have invested in Gentrack Group Ltd (ASX:GTK).
Why do fund managers invest in Gentrack Group Ltd?
Fund managers invest in Gentrack Group Ltd due to its critical role in the energy transition, providing enterprise software for utilities characterized by low customer churn. Its software systems for billing and customer management have high switching costs, ensuring predictable revenue streams. The company's strong growth prospects, demonstrated by recurrent revenue increases and a robust project pipeline, are supported by its advanced software, G2. Additionally, a solid management team and strategic positioning in a consolidating market add to Gentrack's attractive risk/reward profile.
What happened to Gentrack Group Ltd (ASX:GTK)?
Fund managers consider Gentrack Group Ltd a strong investment due to its critical software solutions for energy and water utilities, alongside operational software for airports. Focusing on recurring revenue, Gentrack reported an 8% revenue increase and significant profit growth recently, driven by robust demand across its sectors. The new G2 product suite's integration with Salesforce enhances competitive positioning and customer acquisition potential. With a healthy pipeline of qualified opportunities and expectations for accelerated revenue growth, particularly in recurring segments, fund managers foresee continued margin expansion and a positive outlook for future performance.
What is the short interest in Gentrack Group Ltd (ASX:GTK)?
The short interest in Gentrack Group Ltd (ASX:GTK) is 0.73% which makes it the 235th most shorted stock on the ASX. Of the 112.5M shares that Gentrack Group Ltd has on issue, 817.4K have been sold short.
What does Gentrack Group Ltd (ASX:GTK) do?
Gentrack Group Ltd. engages in the development, implementation, and support of enterprise billing and customer management software solutions for the utility and airport industries. It operates through the Utility and Airport segments. The Utility segment includes utility billing software. The Airport segment provides airport management software. The company was founded in 1989 and is headquartered in Auckland, New Zealand.
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