Key Highlights

• Support and maintenance Revenue rose 13.4% to $230.3 million in FY26, underpinning Hansen's Recurring Revenue base

• Operating Cash Flow increased 52.0% to $110.4 million, with a cash conversion ratio of 0.9x

• FY27 is positioned as an Investment and transition year, with underlying EBITDA Margin expected to exceed 26%

• The company is embedding AI across products and operations through its proprietary NOVA RAG knowledge platform

Shares of Hansen Technologies(ASX:HSN) traded at A$3.65 during the Trading session on 05 November 2026, marking a 3.69% gain on the day. The broader S&P/ASX 200 index (XJO) advanced 2.61%, adding 230.60 points to reach 9,065.10, while the S&P/ASX 200 Information Technology index (XIJ) surged 10.09%, climbing 164.80 points to 1,797.60. The session was buoyed by overnight Wall Street gains after Democrats posted a decisive victory in the U.S. midterm elections, providing a tailwind for global Equity markets. Hansen Technologies is a global provider of industry-specific software solutions, serving customers across the energy and utilities, and communications and media sectors in more than 80 countries.

FY26 Financial Performance

Hansen reported Operating Revenue of $386.5 million for the full year ended 30 June 2026, representing a 1.5% decline year-on-year, which the company attributed to changes in revenue mix, including lower licence fees, and foreign exchange headwinds. However, support and maintenance revenue climbed 13.4% to $230.3 million, reinforcing the recurring nature of the company's revenue streams. Underlying EBITDA came in at $119.6 million, reflecting a 31.0% margin and a 7.2% improvement over the prior year. Cash EBITDA reached $106.2 million at a 27.5% margin, rising 13.7%. Underlying NPAT increased 22.5% to $48.5 million, and basic EPSa based on underlying NPATA rose 15.8% to 32.3 cents.

Segment Breakdown and Digitalk Integration

The Communications and Media segment delivered operating revenue of $184.2 million, up 7.5% year-on-year, supported by the successful integration of Digitalk, which was acquired in December 2025 and contributed approximately $11 million of revenue in FY26. Key activities in this segment included the renewal and expansion of major customer relationships with Telefónica Germany, DishHome Nepal, and MultiChoice, alongside the early release of an AI-powered Catalog Agent. Energy and Utilities revenue came in at $202.3 million, down 8.5%, reflecting customer caution and delayed decision-making in certain markets. The company noted that the German smart meter rollout has been slower than anticipated, delaying pipeline opportunities and resulting in some customer churn. Despite these near-term headwinds, Hansen highlighted a pipeline of opportunities and sustained customer engagement to support future growth.

AI Strategy and NOVA RAG Platform

Hansen has been building the foundations for AI integration across its products and operations over the past twelve months. A key milestone was the development of NOVA RAG, the company's enterprise knowledge platform that captures and structures decades of product, customer, and industry expertise. The platform enables AI solutions to generate responses grounded in trusted Hansen data and domain knowledge. The company's strategic AI vision centres on leveraging this foundation to identify globally applicable capabilities that can be standardised and delivered from a common platform. Hansen indicated it is now shifting from capability building to deployment and commercialisation of AI solutions.

Cash Flow and Capital Management

Operating cash flow surged 52.0% to $110.4 million, and the company maintained a Leverage Ratio of 0.1x after repaying $63.5 million of borrowings during the year. The cash conversion ratio stood at 0.9x, and capitalised development costs were tightly managed with the aid of AI and efficient workforce utilisation. Hansen continues to view mergers and acquisitions as a core growth component, targeting mission-critical software businesses with recurring revenue and clear intellectual property ownership.

Sector Context

The broader ASX technology sector experienced a notable rally on 05 November 2026, with the S&P/ASX 200 Info Tech index gaining more than 10% in a single session. The rally was driven by global risk-on sentiment following the U.S. midterm election results and a broader appetite for technology and growth-oriented equities. Hansen's performance was part of this wider sector tailwind.

Risks

The company faces ongoing headwinds in its Energy and Utilities segment, particularly in the German market where the smart meter rollout is progressing slower than expected. Foreign exchange fluctuations continue to weigh on reported revenues given Hansen's global footprint. Additionally, the transition from upfront licence revenue to recurring consumption-based models may suppress near-term top-line growth. Execution risk around AI commercialisation and integration of acquired businesses also warrants monitoring.

Catalysts on Watch

Key catalysts include the commercial deployment and monetisation of AI solutions built on the NOVA RAG platform. Growth in recurring support and maintenance revenue above the guided 6-8% range in FY27 could signal improving customer retention and upsell dynamics. Potential M&A activity remains on the radar, with Hansen maintaining Balance Sheet capacity to pursue accretive acquisitions. Progress in the German energy market and any acceleration in the smart meter rollout could also provide upside.

Looking Ahead

Hansen Technologies enters FY27 with a clear mandate to invest in revenue quality, scalability, and AI-enabled capabilities. The company expects FY27 revenue to be broadly stable relative to FY26, with recurring support and maintenance revenue growing approximately 6-8%. The underlying EBITDA margin is expected to exceed 26%, reflecting reduced licence revenue contributions and continued investment. The board has characterised FY27 as an investment and transition year aimed at positioning the Business for long-term growth.