Objective (OCL) H1 2026 earnings summary

Executive summary

• Revenue for 1HY2026 grew 9% year-over-year to $66.7 million, with net profit after tax up 10% to $18.7 million and ARR rising 12% to $120.0 million.

• Achieved 100% subscription-based software revenue, with SaaS revenue growth of 24% and adjusted EBITDA margin at 40%.

• Strong R&D investment at 28% of software revenue, totaling $16.6 million for the half and $140 million over five years.

• Integration of IsoPlan and Isovist acquisitions completed, supporting strategic alignment and expanding product offerings.

• Focused on delivering productivity gains through AI across all business lines, with live customer use cases and new AI-driven features.

Financial highlights

• Adjusted EBITDA increased 11% to $25.9 million, with operating cash flow up 72% to $21.7 million.

• Cash balance at period end was $95.1 million after dividends and acquisitions.

• Interim unfranked dividend of 13 cents per share declared, with $12.4 million paid in the half-year.

• Earnings per share rose to 19.6 cents, up 9% year-over-year.

• Rule of 40 calculation exceeds 50, reflecting strong growth and profitability.

Outlook and guidance

• ARR growth for FY2026 expected in the range of 10-14% on a constant currency basis, targeting 15% through ongoing R&D and organic growth.

• Continued investment in R&D and go-to-market capacity to support long-term growth and leverage AI leadership.

• Taking a conservative approach to onboarding new customers in Q4 to ensure quality experience.

• Objective Build in Australia expected to contribute modestly in FY2026, with stronger impact in FY2027.

• Focus remains on organic growth, with M&A activity paused pending market valuation adjustments.