Objective Corporation has delivered solid financial growth in FY2026, with revenue advancing 9% to $134.7 million and adjusted EBITDA increasing 11% to $51.5 million, a result that demonstrates effective execution across the software-as-a-service company’s diverse portfolio. The adjusted EBITDA margin of 39% reflects the inherent profitability potential of the subscription software business model, while SaaS revenue specifically expanded 22%, indicating accelerating momentum in the company’s core recurring revenue engine that increasingly powers the business.
The company’s subscription model continues to strengthen its financial profile and operational resilience. With 100% of software revenue contracted on a subscription basis and 86% of total customer revenue classified as recurring, the business maintains high revenue visibility. This high-recurring-revenue mix underpins earnings stability and provides a solid foundation for forecasting. Net profit after tax increased 5% to $37.2 million, while operating cash flow reached $49.3 million, demonstrating the business converts profits effectively into cash generation despite ongoing capital investment requirements.
A notable tension emerges between revenue growth and annualised recurring revenue trends. ARR declined 2% to $117.3 million despite the 9% revenue expansion, a divergence that warrants investor attention. Information Intelligence, the largest business division, experienced a 5% revenue gain alongside a 5% decline in ARR to $81.0 million, signalling potential mix dynamics or customer churn pressures within that segment. Planning and Building represents a more encouraging story, with revenue surging 41% to $18.5 million and ARR increasing 3% to $18.7 million, though this division remains modest in absolute terms, representing only 14% of group revenue. Regulatory Solutions contributed $25.3 million in revenue, up 7%, with ARR growing 4% to $17.6 million.
The company invested $33.8 million in research and development during the year, representing 30% of software revenue. This substantial commitment reflects management’s confidence in sustained product evolution and competitive positioning within the public sector software market. Capital returned to shareholders totalled $32.0 million across dividends of $24.9 million and share buybacks of $7.1 million, demonstrating confidence in the business while maintaining a strong balance sheet. Cash holdings declined 7% to $92.7 million after the net $4.0 million outlay for the Isovist acquisition, with the company carrying no external debt and maintaining a consolidated financial position that supports future investment opportunities and strategic initiatives.
Investors should monitor whether the ARR decline represents a temporary headwind or a structural challenge within Information Intelligence. The 22% SaaS revenue acceleration and strong adjusted EBITDA growth suggest underlying business momentum remains intact, yet stabilisation of ARR would reinforce confidence in earnings sustainability. The Planning and Building segment’s exceptional 41% revenue growth deserves close observation to assess whether it can develop into a material contributor to group results over time. 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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