Technology One (TNE) investor relations material

Executive summary

• Achieved record half-year results with ARR up 17% to $598.0m and PBT up 9% to $89.1m, meeting or exceeding upgraded guidance and marking the 17th consecutive first-half record.

• SaaS+ transition completed ahead of schedule, now fully embedded across all solutions, driving recurring revenue quality and margin uplift.

• Launched new AI-driven products Plus and Guide, with Plus adoption exceeding expectations and Guide set for release in 2026B, generating new revenue streams including advertising.

• Strong performance in local government and education verticals, with major 10-year agreements signed with James Cook University, Townsville City Council, and University of Suffolk.

• Interim dividend increased 21% to 8.0 cps, supported by a strong balance sheet and payout ratio of 40%.

Financial highlights

• ARR up 17% year-over-year to $598.0m; UK ARR up 23% to $53.0m with strong pipeline for H2.

• SaaS and recurring revenue grew 13% to $299.2m in H1 2026, now 93% of total income.

• PBT up 9% to $89.1m; NPAT up 6% to $66.8m; free cash flow margin at 38%.

• Cash and investments increased 16% year-over-year to $245.5m.

• R&D investment of $84.1m, representing 26% of revenue, with 54% capitalised.

Outlook and guidance

• Upgraded FY26 guidance: ARR growth 16%-18%, PBT growth 18%-20%, targeting top end; PBT margin expansion to 32%.

• Confident in achieving $1 billion+ ARR by FY30, doubling size every five years.

• Net revenue retention expected to return to 115%-120% range by year-end.

• Free cash flow conversion targeted at 100% of profit after tax.

• Continued strong pipeline in both ANZ and UK, with even growth across regions.