Edison's Report Highlights HgT's Robust FY25 Performance Amid Market Sell-off

Edison Investment Research has released a report on HgT, noting strong financial outcomes for FY25. Despite a recent sell-off in software stocks, HgT has shown substantial growth. Revenue and EBITDA grew by 17% and 19%, respectively, over the last 12 months, with organic growth accounting for the majority. Nevertheless, lower comparable multiples and increased net debt for M&A activities led to a modest 4.0% NAV total return.

HgT’s companies boast an average EBITDA margin of 33%, bolstered by significant investments in AI technologies. Supported by Hg Catalyst, over 1,600 AI projects are active within HgT's portfolio. Despite this progress, HgT shares are trading at a 27% discount to NAV, a notable drop from a 10-year average of 8% discount.