Key highlights

  • Xero (ASX:XRO) reported FY26 operating revenue of NZ$2.75 billion, up 31%, and 4.92 million customers.
  • Technology One (ASX:TNE) reported H1 FY26 ARR of $598.0 million, up 17%, and reaffirmed FY26 guidance.
  • Objective Corporation (ASX:OCL) reported FY2026 revenue of $134.7 million, up 9%, with ARR of $117.3 million, down 2%.

Subscription software companies report results through recurring revenue measures such as annual recurring revenue (ARR) alongside profit and cash flow. This article reviews the latest reported results of three Australian-listed software companies: Xero Limited (ASX:XRO), Technology One Limited (ASX:TNE) and Objective Corporation Limited (ASX:OCL). Their reporting periods differ, so the figures are not directly comparable.

Sector context

Software-as-a-service companies are assessed on customer growth, retention, recurring revenue and margins, and the releases refer to AI product development and acquisitions. Reporting calendars and currencies differ across the three companies.

Xero Limited (ASX:XRO)

Xero reported FY26 results on 14 May 2026 for the year ended 31 March 2026, in New Zealand dollars. Operating revenue was NZ$2,753.1 million, up 31%, adjusted EBITDA was NZ$757.4 million, up 18%, free cash flow was NZ$554.0 million and operating income was NZ$316.1 million, down 13%. Customers rose to 4.92 million with net additions of 506,000, and annualised monthly recurring revenue rose 37% to NZ$3,273.1 million.

The Board authorised the purchase of up to an amount equal to A$550 million of shares in FY27 to offset dilution from share-based compensation. The release notes that Melio, a US payments business, is reflected in the results.

Technology One Limited (ASX:TNE)

Technology One reported half-year results to 31 March 2026 on 19 May 2026. Profit before tax was $89.1 million, up 9%, total revenue was $322.7 million, up 11%, ARR was $598.0 million, up 17% and net revenue retention was 114%. Free cash flow was $20.3 million, down 15%, and the interim dividend was 8.0 cents, up 21%.

The company reaffirmed FY26 guidance of 18% to 20% profit growth and 16% to 18% ARR growth, inclusive of AI products. UK ARR was $53.0 million, up 23%.

Objective Corporation Limited (ASX:OCL)

Objective reported FY2026 results on 27 August 2026. Revenue was $134.7 million, up 9%, adjusted EBITDA was $51.5 million, up 11%, and NPAT was $37.2 million, up 5%. SaaS revenue grew 22%, operating cash flow was $49.3 million and cash was $92.7 million with no external borrowings.

ARR was $117.3 million at 30 June 2026, down 2%, with Information Intelligence ARR down 5%, while Planning & Building revenue rose 41%. Total dividends were 26.0 cents per share, up 18%.

Putting the three software results side by side

Xero and Technology One reported double-digit growth in recurring revenue measures, while Objective’s revenue and profit grew even though its ARR declined slightly. Each company also returned capital through dividends or share purchases.