Objective (OCL) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY25/1HY2025 grew 6% year-over-year to AUD 61.3 million, with net profit after tax up 4% to AUD 17 million.

• Annualised recurring revenue (ARR) rose 10% to AUD 107 million, with 84% of total revenue now recurring and 100% of software revenue from subscriptions.

• Adjusted EBITDA increased 6% to AUD 23.3 million, and cash balance rose 26% to AUD 84.3 million.

• Strategic focus on SaaS and subscription revenue, with a 29% SaaS CAGR and continued customer migration to cloud platforms.

• R&D investment remains high, with AUD 15.1 million spent (30% of software revenue), and 44% of all-time spend in the last six years, focusing on AI-driven innovation.

Financial highlights

• Adjusted EBITDA margin exceeded 39%.

• R&D investment reached AUD 15.1 million, up 7%, with 52% capitalised.

• Cash balance at period end was AUD 84.3 million, up 26% year-over-year.

• Earnings per share increased to 17.9 cents.

• Total dividends paid in the half-year were AUD 16.1 million.

Outlook and guidance

• Management targets 15% ARR growth for FY2025, with early H2 performance contributing AUD 4.5 million toward the goal.

• Focus remains on organic growth, with selective M&A considered for strategic fit.

• Continued investment in R&D and accelerated delivery models to drive future sales and conversions.

• Operating leverage expected to increase as go-to-market and administrative investments yield results.

• Robust pipeline for the second half supports confidence in achieving full-year targets.