Objective (OCL) H2 2025 earnings summary

Executive summary

• Revenue reached AUD 124 million for FY2025, up 5% year-over-year, with annual recurring revenue (ARR) at AUD 120.2 million, up 15% year-over-year.

• Adjusted EBITDA was AUD 46 million, a 5% increase, with a 39% margin; net profit after tax rose 13% to AUD 35.4 million.

• 84% of revenue is recurring, with 100% of software revenue from subscriptions.

• Significant R&D investment totaled AUD 31.2 million (30% of software revenue) this year, and AUD 135 million over five years.

• Celebrated 25 years on the ASX and surpassed 2,000 customer relationships.

Financial highlights

• Operating cash flow matched adjusted EBITDA at AUD 46 million; cash balance stood at AUD 99.2 million, up 3% year-over-year.

• Total dividends declared were 22 cents per share, up 29% from FY2024.

• SaaS revenue grew at a 28% CAGR since FY2019, while non-recurring revenue declined at a -2% CAGR.

• Services revenue declined year-on-year due to efficiency improvements and focus on reducing implementation costs.

• Isovist acquisition contributed AUD 2 million to ARR and has been profitable since 2022.

Outlook and guidance

• FY2026 targets: ARR growth remains an internal focus, with business unit growth targets of 11%-13% for Content Solutions, 20%-25% for Planning and Building, and 20%-25% for Regulatory Solutions.

• Targeting 15% ARR growth for FY2026, with a focus on profitable scaling and expanded use cases for Objective Intelligence.

• Continued strong R&D investment is expected, with percentage of revenue likely to remain stable.

• Margin improvement anticipated as subscription revenue grows and services revenue stabilizes.

• Build Australia platform to launch broadly in the second half of FY2026, with revenue contribution expected to be back-end loaded.