Highlights

  • FY26 Revenue rose 9% to A$134.7 million, while adjusted EBITDA increased 11% to A$51.5 million.
  • Annual Recurring Revenue eased 2% to A$117.3 million after the Defence USP agreement was not renewed.
  • Management has guided FY27 adjusted EBITDA of more than A$40 million, below the FY26 result.
  • Total FY26 dividends reached 26 cents per share, while A$7.1 million was spent on share buy-backs.

Objective Corporation Ltd (ASX:OCL) delivered higher FY26 Earnings but has signalled a lower profit base for FY27 after losing a long-running Defence support agreement. For the year to 30 June 2026, the government-focused software provider lifted revenue 9% to A$134.7 million and net profit after tax 5% to A$37.2 million. However, annual recurring revenue (ARR) slipped 2% to A$117.3 million, and the company guided FY27 adjusted EBITDA of A$40 million or more.

Defence Decision Reshapes the Recurring Base

On 1 July 2026, Objective disclosed that Defence Digital Group had declined to renew the Objective ECM Upgrade and Support Program agreement, which had run for more than 25 years. The decision was confirmed on 30 June 2026, despite negotiations since March. Defence lost access to engineering support, vulnerability fixes and upgrades from 1 July, although it said it remained committed to using Objective ECM across about 140,000 users. Objective said licensed users above 85,000 were tied to the USP term, and ongoing licence terms had not been agreed.

Founder and Chief Executive Tony Walls said the company was deeply disappointed by the short-notice decision. The ARR bridge in the results presentation showed an A$8.3 million Defence item, and the NHVR managed services contract was discontinued after year end, cutting Regulatory Solutions ARR by A$3.1 million.

Segment Results Show Mixed Momentum

Information Intelligence revenue grew 5% to A$87.9 million, but its ARR fell 5% to A$80.9 million. Planning and Building revenue jumped 41% to A$18.5 million, with ARR up 3% to A$18.7 million, while Regulatory Solutions revenue rose 7% to A$25.3 million and ARR increased 4% to A$17.6 million. SaaS revenue grew 22%, and recurring revenue made up 86% of customer revenue.

The presentation also noted higher than expected churn in Objective Connect where customers required SharePoint connectors.

Strong Cash Position Supports Returns

Operating cash flow increased to A$49.3 million and cash stood at A$92.7 million at 30 June 2026, with no external borrowings. Earnings Per Share rose 5% to 38.9 cents, and Research and Development Investment rose 8% to A$33.8 million. The final Dividend of 13 cents per share comprised eight cents fully franked and five cents unfranked, bringing the FY26 total to 26 cents, and the company made net payments of NZ$4.0 million for the Isovist acquisition.

FY27 Priorities Centre on Go-to-Market and Nexus

Beyond the EBITDA guidance, Objective plans to invest in go-to-market capability, pursue product Leadership and keep Acquisition opportunities open while focusing on profitability. It has said it will use its resources to accelerate development of Objective Nexus for the broader Defence and National Security market, and that the Defence outcome does not prevent it selling other solutions to the Department. No FY27 revenue or ARR guidance was provided.

The 2026 Annual Report and notice of Annual General Meeting were released on 23 October 2026, and on-market buy-back activity continued through October. Shares were priced at A$6.33 on 2 November 2026, up 1.77% on the day, with a Market Capitalisation of A$605.35 million.