Key Highlights

  • The FY26 result is listed for 17 November 2026, a date the company describes as tentative.
  • Half-year profit before tax was $89.1 million, up 9%, and net profit after tax was $66.8 million, up 6%.
  • Guidance is profit before tax growth of 18% to 20% and ARR growth of 16% to 18%, with a Margin expanding from 30% to 32%.
  • Free Cash Flow was $20.3 million in the half, with the company guiding to free cash flow equal to net profit after tax for the year.

What does Technology One Limited (ASX:TNE) need to show when it reports its full-year result? The company's financial calendar lists the FY26 result for 17 November 2026, a date it describes as tentative. The most recent reported benchmark is the half-year to 31 March 2026, released on 19 May 2026, together with full-year guidance for profit before tax growth of 18% to 20% and annual Recurring Revenue (ARR) growth of 16% to 18%.

The latest result: first half of FY26

Half-year profit before tax was $89.1 million (all figures Australian dollars), up 9%, with a margin of 28%, flat on the prior corresponding period. Net profit after tax was $66.8 million, up 6%. Total revenue was $322.7 million, up 11%, of which SaaS and recurring revenue was $299.2 million, up 13%.

ARR was $598.0 million, up 17% (19% in constant currency). Net revenue retention was 114% (116% in constant currency). UK ARR reached $53.0 million, up 23%.

The company also presents underlying measures in constant currency and normalised for the timing of its Showcase conference. On that basis it reports ARR growth of 19%, profit before tax growth of 21% and a margin of 30%. The gap between 9% statutory and 21% Underlying Profit growth is therefore a matter of basis, and readers should keep the two apart.

What the company does and how it earns

Technology One develops enterprise software for governments, local councils, universities and other large organisations, sold on a subscription basis that it calls SaaS+. Revenue is driven by ARR, which is built from new customers, expansion within existing customers, and annual price increases, less churn.

Local government ARR grew 27% and education ARR grew 15%, with wins including a 10-year agreement with City of Townsville, which returned from a competitor, and a 10-year full-suite deal with James Cook University. In the UK, wins included the University of Suffolk and Royal Holloway, University of London. Government ARR growth was not separately quantified.

Cash, Dividend and balance sheet

Free cash flow was $20.3 million, down 15% from $24.0 million, but the company notes cash flow is traditionally weighted to the second half. Its FY26 guidance is for free cash flow to equal net profit after tax.

Cash and investments were $245.5 million, up 16%, with no debt. An Interim Dividend of 8.0 cents per share, up 21%, was scheduled for payment on 12 June 2026. The final Dividend Dates on the calendar (ex-dividend 26 November, payment 11 December 2026) are tentative and subject to board declaration.

FY26 guidance in context

Guidance, reaffirmed with the half-year result, is for profit before tax growth of 18% to 20%, ARR growth of 16% to 18% with the company targeting the top of that range, and a margin expansion of two percentage points, from 30% to 32%. The company says guidance includes all AI, Showcase and SaaS+ investment. Initial ranges in earlier years were 12% to 16% for FY24 and 13% to 17% for FY25.

Interpretation (own arithmetic): if first-half profit before tax of $89.1 million was 9% above the prior period, the prior half was about $81.7 million. Full-year growth of 18% to 20% would therefore need the second half to grow materially faster than the first, unless the company's constant-currency and normalised basis is what is being measured. The release does not state which basis the guidance uses, so no firm conclusion is drawn.

AI, Investment and long-term targets

In October 2025 Technology One launched an AI strategy at its Showcase event, including an agentic product called Plus, a Guide function and AI inside the product. Release 26A went live in April 2026. The company says AI expands its previously estimated total addressable market of $13.5 billion.

Research and development spending before Capitalisation was $84.1 million, up 22% and 26% of total income, with 54% capitalised. The company says SaaS+ investment reduced the half-year profit margin by about two percentage points, and that excluding it profit would have been about $105 million, a 32% margin.

Long-term targets are ARR above $1 billion by FY30, a group profit margin of 35% or more in coming years, net revenue retention of at least 115% and a Rule of 40 score above 40%. The company's reported Rule of 40 was 55% for the half, a non-IFRS, unaudited measure.

Interpretation (own arithmetic): growing ARR from $598.0 million to $1 billion by 30 September 2030 would require roughly 12% a year, assuming the target refers to ARR at that date. Recent growth of 17% is above that rate, though growth tends to slow as the base grows.

Risks and what to monitor

On 17 November 2026, watch whether full-year ARR growth lands at or near the top of the 16% to 18% range, the achieved profit margin against the 32% target, and the second-half free cash flow conversion against the commitment to match net profit.

Other items include the size of the investment drag from SaaS+ and AI, UK growth, currency effects (the gap between reported and constant-currency ARR growth is two percentage points), and any change in net revenue retention from the 114% reported.