What Does Objective Corporation Ltd (ASX:OCL) Report for FY2026 Across Its Three Business Lines?

Sonal Goyal

19 October 2026 05:00 PM AEDT

What Does Objective Corporation Ltd (ASX:OCL) Report for FY2026 Across Its Three Business Lines?

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Key Highlights

Objective reported FY2026 revenue of $134.7 million, up 9%, and adjusted EBITDA of $51.5 million, up 11%.
Net profit after tax was $37.2 million, up 5%, while ARR was $117.3 million, down 2%.
Dividends declared for FY2026 totalled 26.0 cents per share, up 18%.

Objective Corporation Ltd (ASX:OCL) shares were priced at $5.805 during the trading session on 19 October 2026, down 1.11%. Objective provides software to public sector organisations and regulated industries. On 27 August 2026, the company released its results for the full year ended 30 June 2026 (FY2026), covering group results, business line performance, R&D investment, cash flow and dividends. The price data relates only to the 19 October 2026 session and is separate from the release date.

Group financial results

Revenue was $134.7 million, up 9% from $123.5 million. Adjusted EBITDA was $51.5 million, up 11%, and net profit after tax was $37.2 million, up 5%. Earnings per share were 38.9 cents, up 5%. The headline of the release also cites SaaS revenue growth of 22%.

Annualised recurring revenue was $117.3 million, down 2% from $120.2 million. All software revenue was contracted under a subscription model, and recurring revenue represented 86% of total revenue from customers.

Business line performance

Information Intelligence sales revenue was $87.9 million, up 5%, while its ARR fell 5% to about $81 million. Planning & Building sales revenue was $18.5 million, up 41%, with ARR up 3% to $18.7 million. Regulatory Solutions sales revenue was $25.3 million, up 7%, with ARR up 4% to $17.6 million.

Investment, cash and dividends

Research and development investment was $33.8 million, up 8% and equal to 30% of software revenue, of which $17.4 million was capitalised. Operating cash flow was $49.3 million, and cash was $92.7 million at 30 June 2026, down 7%, after NZ$4.0 million in net payments for the acquisition of Isovist, dividends of $24.9 million and share repurchases of $7.1 million. The group has no external borrowings.

Directors declared a final fully franked dividend of 8 cents per share and a final unfranked dividend of 5 cents per share. Total dividends declared for FY2026 were 26.0 cents per share, compared with 22.0 cents.

Business model and investment detail

The release describes Objective as creating software that helps thousands of public sector organisations move to digital operations. It states that all software revenue was contracted under a subscription model during FY2026 and that recurring revenue represented 86% of total revenue from customers.

Of the $33.8 million invested in research and development, $17.4 million was capitalised, compared with $15.7 million of $31.2 million in FY2025. Operating cash flow rose to $49.3 million from $46.3 million, and dividends paid to shareholders were $24.9 million, compared with $24.8 million in the prior year.

The acquisition of Isovist involved net payments of NZ$4.0 million during the year. The company said its balance sheet provides significant capacity to pursue investment opportunities.

Sector backdrop

Software for government agencies and regulated industries is typically sold on subscription contracts that are renewed over multiple years, and results can vary with public sector budgets and procurement timing. Companies in this segment report annualised recurring revenue and the split between recurring revenue and project-related revenue. Business lines such as content management, planning and building approvals and regulatory compliance respond to different customer groups, so ARR movements can differ between them.

Risks shareholders should weigh

The press release and the wider operating environment point to several considerations that shareholders may wish to weigh:

ARR declined 2% overall, and Information Intelligence ARR, the largest business line, declined 5%.
Cash fell 7% during the year after dividends, share repurchases and an acquisition payment.
One of the final dividends is unfranked, which differs from the fully franked portion.
Sales revenue and ARR growth rates differed across business lines, so group results depend on the mix.
The announcement does not include numerical FY2027 guidance, so forward expectations are not quantified in the release.

What's next

The release does not provide FY2027 guidance. It states that the group's balance sheet has significant capacity to pursue investment opportunities, that it has no external borrowings and that final dividends of 8 cents (fully franked) and 5 cents (unfranked) have been declared. R&D investment continues at about 30% of software revenue as a stated level for FY2026.

FAQs

Q: What was Objective's FY2026 revenue and profit?

A:Revenue was $134.7 million, up 9%, and net profit after tax was $37.2 million, up 5%.

Q: What dividends were declared for FY2026?

A:A final fully franked dividend of 8 cents and a final unfranked dividend of 5 cents, with total FY2026 dividends of 26.0 cents per share.

Q: How did ARR change?

A:ARR was $117.3 million at 30 June 2026, down 2% from $120.2 million.

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