Objective Corporation (ASX:OCL) Revenue Rises 9% While Annualised Recurring Revenue Slips 2%

Sonal Goyal

27 August 2026 02:04 PM AEST

Objective Corporation (ASX:OCL) Revenue Rises 9% While Annualised Recurring Revenue Slips 2%

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Key Highlights

Group Revenue grew 9% to $134.7 million, with Adjusted EBITDA up 11% to $51.5 million and Net Profit After Tax up 5% to $37.2 million.
Annualised Recurring Revenue (ARR) decreased 2% to $117.3 million, with Information Intelligence ARR down 5% to $81.0 million.
R&D Investment increased 8% to $33.8 million, representing 30% of software revenue, with $17.4 million capitalised during the year.
Total dividends declared for FY26 were 26 cents per ordinary share, up 18% on FY25, despite cash at balance date falling 7% to $92.7 million.

Objective Corporation Limited (ASX:OCL) share price was trading at $5.87, down 21.31% or $1.59 on the day, as at 27 August 2026, 12:20pm AEST, following the release of its FY2026 full year results. Group revenue grew 9% to $134.7 million from $123.5 million in FY2025. Adjusted EBITDA increased 11% to $51.5 million from $46.5 million, and Net Profit After Tax increased 5% to $37.2 million from $35.4 million. Earnings Per Share rose 5% to 38.9 cents.

During FY2026, 100% of the company's software revenue was contracted under a subscription model, with recurring revenue representing 86% of total revenue from customers. However, the Annualised Recurring Revenue balance at 30 June 2026 decreased 2% to $117.3 million, down from $120.2 million at 30 June 2025, reflecting divergent trends across the company's three Business lines.

Business Line Performance Diverges

Information Intelligence, the company's largest segment, delivered sales revenue of $87.9 million, up 5% on FY25, but ARR for this segment decreased 5% to $80.9 million (with the ARR summary table separately showing $81.0 million, reflecting rounding). Planning & Building delivered the strongest growth, with sales revenue up 41% to $18.5 million and ARR up 3% to $18.7 million. Regulatory Solutions sales revenue increased 7% to $25.3 million, with ARR up 4% to $17.6 million.

The divergence between overall revenue growth and the decline in ARR reflects the company's mix of subscription revenue recognised over time against project-based and licence revenue recognised upfront, meaning the ARR metric, which captures only the annualised value of contracted recurring revenue at period end, moved differently from total reported revenue during the year.

R&D Investment and Cash Position

During FY2026, Objective Corporation invested $33.8 million in Research and Development, up from $31.2 million in FY2025, representing 30% of software revenue. Of this investment, $17.4 million was capitalised during the year, up from $15.7 million in FY2025. Group Operating Cash Flow in 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% on the balance at 30 June 2025, after net payments of NZ$4.0 million for the Acquisition of Isovist and total Capital returns to shareholders of $24.9 million in dividends and $7.1 million in share buybacks, compared with $24.8 million in dividends and no Buybacks in FY2025. The Group has no external borrowings.

Dividend Increase Reflects Profit Growth

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 cents per ordinary share, up 18% on FY2025's 22.0 cents, reflecting the increase in net profit after tax and the company's cash generation during the year.

The company said its consolidated statement of financial position provides significant capacity to further pursue investment opportunities that enhance returns for stakeholders, with the debt-free Balance Sheet and continued cash generation supporting both ongoing R&D investment and the increased capital returns to shareholders during FY2026.

Conclusion

Objective Corporation's FY26 results present a mixed picture, with headline revenue, EBITDA and profit all showing growth even as Annualised Recurring Revenue, a key forward-looking metric for the business, declined 2% for the year, driven by a 5% fall in Information Intelligence ARR. With R&D investment continuing to represent 30% of software revenue and dividends increased 18% on the back of profit growth, the company's near-term trajectory will depend on whether growth in its Planning & Building and Regulatory Solutions segments can offset the softness observed in its largest Information Intelligence business.

FAQs

Q: Did Objective Corporation's revenue grow in FY26?

A: Yes, Group revenue grew 9% to $134.7 million, with Adjusted EBITDA up 11% to $51.5 million and Net Profit After Tax up 5% to $37.2 million.

Q: Why did Objective Corporation's Annualised Recurring Revenue decline?

A: ARR decreased 2% to $117.3 million, primarily due to a 5% decline in Information Intelligence ARR to $81.0 million, partly offset by growth in Planning & Building and Regulatory Solutions ARR.

Q: How much did Objective Corporation invest in R&D in FY26?

A: The company invested $33.8 million in Research and Development, up 8% on FY25, representing 30% of software revenue, with $17.4 million of this capitalised.

Q: What dividend did Objective Corporation declare for FY26?

A: Total dividends declared for FY26 were 26 cents per ordinary share, up 18% on FY25, comprising an 8 cent fully franked final dividend and a 5 cent unfranked final dividend.

Q: Did Objective Corporation's cash balance increase in FY26?

A: No, cash at balance date decreased 7% to $92.7 million, reflecting the Isovist acquisition payment, $24.9 million in dividends and $7.1 million in share buybacks during the year.

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