CEO Letter to Shareholders
Stock | Objective Corporation Ltd (OCL.ASX) |
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Release Time | 21 Aug 2025, 9:56 a.m. |
Price Sensitive | Yes |
Objective Corporation reports strong FY2025 results
- Invested 30% of software revenue into R&D, placing Objective among global industry leaders
- Annualised recurring revenue (ARR) grew 15.1% in FY2025
- Adjusted EBITDA margin was 39% in FY2025
Objective Corporation Limited (ASX: OCL) has reported its results for the financial year 2025 (FY2025), demonstrating the continued strength of its business model. The company has maintained discipline in the allocation of capital, with a focus on creating customer experiences that deliver enduring value. In FY2025, Objective invested 30% of software revenue into research and development (R&D), placing it among global industry leaders in its commitment to innovation. This investment has enabled the company to attract top talent and deliver a regular cadence of new capabilities and innovations for its customers. The company's annualised recurring revenue (ARR) grew 15.1% in FY2025, and the adjusted EBITDA margin was 39%. Objective has also increased the proportion of subscription revenue to 84% of total revenue. The company's focus on AI in the public sector, with a framework for embedding AI in its products while ensuring governance, auditability, security, and trust, has been well-received by its customers. Objective's organic growth drivers, including advancements in its content solutions, regulatory solutions, and planning and building solutions, have also contributed to its strong performance. The company has also expanded its presence in the UK and North American markets, and the acquisition of Isovist, a specialist provider of e-planning software for local government, has further enhanced its domain expertise in planning and building. Looking ahead, Objective is targeting ARR growth of 15% and profit growth above that level in FY2026, driven by the permanent demand drivers in the GovTech market and its strong and resilient business model.
Objective Corporation is targeting annualised recurring revenue (ARR) growth of 15% and profit growth above that level in the financial year 2026 (FY2026).
Objective Corporation is well-positioned to continue its strong performance, with a portfolio of products that deliver exceptional value to customers by solving complex problems, including the future with AI. The company's global platform provides multiple paths for growth, particularly in a world with an increasing focus on sovereign data governance. Objective will also continue to explore M&A opportunities that align with its strategic plan.