Key Highlights

  • Objective Corporation Limited (ASX:OCL) reported FY2026 Revenue of $134.7 million, up 9% year-on-year, with shares trading at $6.05, down 1.95% during the Trading session on 17 September 2026.
  • Adjusted EBITDA rose 11% to $51.5 million at a 39% margin, while net profit after tax increased 5% to $37.2 million.
  • Annualised Recurring Revenue declined 2% to $117.3 million, driven by a 5% fall in Information Intelligence ARR to $81.0 million.
  • Total dividends declared for FY2026 rose 18% to 26.0 cents per share, comprising an 8 cent fully franked and a 5 cent unfranked final dividend.

Objective Corporation Limited (ASX:OCL) shares traded at $6.05, down 1.95%, during the trading session on 17 September 2026. The public sector-focused software company recently released its Full Year Results for FY2026, reporting growth across revenue, adjusted EBITDA and net profit, alongside continued Investment in Research and Development across its Information Intelligence, Planning & Building, and Regulatory Solutions Business lines.

FY2026 Financial Results

Group revenue for FY2026 grew 9% to $134.7 million, up from $123.5 million in FY2025. Adjusted EBITDA increased 11% to $51.5 million from $46.5 million, while net profit after tax rose 5% to $37.2 million from $35.4 million. Earnings Per Share increased to 38.9 cents from 37.2 cents, also a 5% rise.

SaaS revenue growth for the year was 22%, and the company reported that 100% of its software revenue was contracted under a subscription model during FY2026, with recurring revenue representing 86% of total revenue from customers. Despite this, the company's Annualised Recurring Revenue balance declined 2% to $117.3 million at 30 June 2026, down from $120.2 million a year earlier.

The decline in ARR was driven primarily by the Information Intelligence business line, where ARR fell 5% to $81.0 million from $85.1 million, even as its sales revenue rose 5% to $87.9 million. This contrasted with growth in the company's other two business lines: Planning & Building sales revenue rose 41% to $18.5 million with ARR up 3% to $18.7 million, while Regulatory Solutions sales revenue increased 7% to $25.3 million with ARR up 4% to $17.6 million.

Research and Development Investment

Objective Corporation invested $33.8 million in Research and Development during FY2026, up 8% from $31.2 million in FY2025, representing 30% of software revenue. Of this investment, $17.4 million was capitalised during the year, compared with $15.7 million in the prior year.

Cash Flow and Balance Sheet

Group operating Cash Flow for FY2026 was $49.3 million, up from $46.3 million in FY2025. The total cash balance at 30 June 2026 was $92.7 million, a decrease of 7% from the balance at 30 June 2025. The company said this decline followed net payments of NZ$4.0 million for the Acquisition of Isovist, total Capital returns to shareholders in the form of dividends of $24.9 million, and share Buybacks of $7.1 million, compared with no buybacks in the prior year. The company confirmed it carries no external borrowings.

Dividend Declaration

The Directors declared a final fully franked Dividend of 8 cents per ordinary share and a final unfranked dividend of 5 cents per ordinary share. Total dividends declared in relation to FY2026 were 26.0 cents per ordinary share, an increase of 18% from 22.0 cents in FY2025.

Key Takeaways

Objective Corporation reported growth across revenue, adjusted EBITDA and net profit for FY2026, supported by strong SaaS revenue growth and continued subscription conversion across its customer base, even as its overall Annualised Recurring Revenue balance declined due to softness in the Information Intelligence segment. The company maintained an unleveraged Balance Sheet while increasing both its research and development spend and Shareholder dividend, reflecting a business continuing to invest in product development while returning a larger share of profit to shareholders.