Objective Corporation has delivered solid full-year results for FY2026, with revenue rising 9 percent to $135 million and adjusted EBITDA climbing 11 percent to $52 million, demonstrating the company’s ability to convert top-line growth into increased profitability. The stronger EBITDA growth relative to revenue reflects improving operational leverage as the business matures, a key consideration for investors evaluating the company’s execution against its strategic targets.
The standout feature of the results is the continued dominance of subscription software revenue, now representing 100 percent of total revenue. This structural shift matters significantly because recurring revenue streams provide predictability and durability. Annualised recurring revenue reached $121 million on a reported basis, or $114 million on a constant currency basis, evidencing the company’s success in transitioning its business model. Over the past seven years, SaaS revenue has grown at a 27 percent compound annual growth rate, substantially outpacing the company’s non-recurring revenue streams, which have declined at 3 percent annually, confirming that the transition is well underway and sustainable.
Profitability metrics tell a reassuring story. Net profit after tax reached $49 million, while operating cash flow grew 5 percent to $37 million, representing 94 percent of adjusted EBITDA. This strong conversion of earnings to cash signals that reported profits are genuine and that the company has genuine cash available for returns to shareholders. The dividend increased to 26 cents per share, split between 8 cents fully franked and 18 cents unfranked, maintaining the company’s shareholder-friendly capital allocation whilst preserving cash for growth investment.
Investment in research and development remains substantial at 30 percent of software revenue, totalling $34 million in FY2026. Over the past five years, the company has invested $146 million cumulatively in R&D, representing 43 percent of total R&D spend. This commitment to innovation positions Objective to compete effectively as artificial intelligence reshapes enterprise software. The company’s presentation emphasises its Systems of AI Record strategy, which embeds AI capabilities within trusted, mission-critical workflows backed by sovereign data management and defence-grade security. For a business serving highly regulated public sector and regulated industries, this positioning addresses genuine customer concerns about accountability, compliance and data sovereignty that many AI-first competitors simply cannot answer.
The company’s 2000 plus customer relationships and two decades of domain expertise in government technology provide a durable competitive moat. Investors should monitor whether the company can expand its AI-driven revenue opportunities and whether the SaaS revenue growth rate can be sustained in an increasingly competitive enterprise software market. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Objective Corporation Limited (ASX: OCL)
Objective Corporation Limited supplies information technology software and services, specializing in enterprise content management, records compliance, and process automation solutions. The company offers products including Objective Nexus, a SaaS-based platform for information management and governance, along with solutions for secure file sharing and redaction. It operates in Australia and internationally, serving customers across various sectors requiring enterprise-scale information management capabilities.
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