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 million, up 15% year-over-year, and adjusted EBITDA of AUD 46 million.

• Net profit after tax was AUD 35 million, up 13% year-over-year, and operating cash flow matched adjusted EBITDA at AUD 46 million.

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

• Significant R&D investment continues, totaling AUD 31 million this year (30% of software revenue), and AUD 135 million over five years.

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

Financial highlights

• Adjusted EBITDA margin was 39%, with 15% growth year-over-year.

• Cash balance stood at AUD 99 million, up 3% year-over-year, and a full-year dividend of AUD 22 million (22cps unfranked) was declared.

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

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

• 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.