Technology One (TNE) H2 2025 earnings summary

Executive summary

• Achieved record annual recurring revenue (ARR), revenue, and profit for the 16th consecutive year, with ARR up 18% to AUD 554.6 million and profit before tax up 19% to AUD 181.5 million, surpassing guidance.

• Surpassed AUD 500 million ARR by H1 FY25, setting a new long-term target of AUD 1 billion+ ARR by FY30.

• U.K. ARR grew 49% to AUD 51.8 million, with new sales ARR up 52%.

• SaaS+ and the new AI-enabled Plus platform are driving growth and rapid customer adoption.

• Significant R&D investment of AUD 153.7 million (25% of revenue) to accelerate AI and product innovation.

Financial highlights

• SaaS and recurring revenue up 19% to AUD 553.2 million, representing 91% of total income.

• Total income rose 18% to AUD 610 million; EBITDA increased 18% to AUD 255.7 million.

• Free cash flow reached AUD 184.2 million, up 55% year-over-year, with cash and investments at AUD 319.6 million (+15%).

• Final ordinary and special dividend of AUD 0.30 per share, total FY dividend up 63% to AUD 0.36 per share, with payout ratio lifted to 65%-75% from FY26.

• Rule of 40 result of 59%, placing in the top quartile globally among software peers.

Outlook and guidance

• Long-term target set for AUD 1 billion+ ARR by FY 2030, after reaching AUD 500 million ARR 18 months ahead of plan.

• Strong sales pipeline and continued investment in R&D to support future growth.

• FY 2026 outlook remains strong, with further guidance to be provided at the AGM in February.

• Profit before tax margin expected to expand to 35%+ in the long term.

• Dividend payout ratio to increase to 65%-75% from FY26.