Daily Roundup

OCL.ASX AIM.ASX RTH.ASX AHC.ASX CCA.ASX

Objective Corporation posts strong SaaS growth amid strategic transitions

Objective Corporation delivered solid FY2026 results with revenue climbing 9% to $134.7 million, though the company faced some headwinds from contract changes. The standout performer was SaaS revenue, which surged 22%, while subscription revenue grew 13%. Adjusted EBITDA rose 11% to $51.5 million with an impressive 39% margin, and net profit after tax increased 5% to $37.2 million.

The company maintained its commitment to innovation, plowing $33.8 million into R&D—representing 30% of software revenue. All software revenue now operates under a subscription model, underscoring the shift toward recurring income. However, Annualised Recurring Revenue (ARR) slipped 2% to $117.3 million, partly due to the discontinuation of a heritage support contract with the National Heavy Vehicle Regulator that will reduce ARR by $3.2 million in FY2027.

Looking ahead, management expects adjusted EBITDA of at least $40 million in FY2027 while continuing to invest heavily in Information Intelligence and go-to-market strategies. The company also expanded into the Defence and National Security sector with new customer wins. With no external borrowings and $92.7 million in cash, Objective declared total dividends of 26 cents per ordinary share, up 18%.

Austco Healthcare hits record revenue milestone

Austco Healthcare delivered impressive FY2026 results, posting record revenue of $94.2 million—a 16% jump from the prior year. The company's software and maintenance revenue grew even faster at 19%, reaching $11.4 million and bolstering its recurring revenue foundation. EBITDA climbed 14% to $14.9 million, while net profit after tax surged 52% to $9.0 million, reflecting strong operational leverage.

The healthcare technology company expanded its global footprint to six countries, now serving over 5,000 facilities. Its balance sheet remains robust with $16.3 million in cash and no material borrowings. Unfilled Contracted Revenue (UCR) reached $51.2 million, up 13%, providing solid visibility into future earnings. Gross margin also improved to 53.4% from 52.0%, demonstrating pricing power and operational efficiency gains.

Austco enters FY2027 with momentum, expecting EBITDA to exceed $15 million. The company's healthy sales pipeline and growing software base position it well for continued expansion.

Ai-Media pivots toward recurring revenue, posts 42% SaaS growth

Ai-Media Technologies executed a strategic transition toward software and recurring revenue in FY2026, resulting in total revenue declining 7% to $60.2 million but masking impressive underlying momentum. SaaS revenue exploded 42% to $34.1 million, driven by its flagship LEXI Text product, while technology revenue grew 9% to $44.8 million and now represents 74% of group revenue.

Annual Recurring Revenue jumped 50% to $36 million, signaling strong customer adoption and retention. The company retained all of its top 20 customers for a fifth consecutive year and expanded to 46 countries. Gross margin improved 4 percentage points to 73%, while adjusted EBITDA turned positive at $2.1 million despite a reported EBITDA loss of $335,000 that reflects transition costs.

The company ended FY2026 with $15.9 million in cash, positive operating cash flow, and no debt. Management plans to scale LEXI Text, convert its installed encoder base to new AI-native infrastructure, and commercialize LEXI Voice for broader market adoption.

RAS Technology accelerates growth with new partnerships

RAS Technology Holdings posted a robust 34% revenue increase to $28.4 million in FY2026, driven by expansion across all business segments. Annualised Recurring Revenue grew 8% to $23.5 million, reflecting a strengthening recurring revenue base. Despite the strong top-line growth, the company recorded a modest net loss of $0.3 million due to substantial investments in trading capability, Asian operations, and product development.

The company signed significant new agreements with Tabcorp for a four-year term and with the LeoVegas Group in the UK, both expected to drive future earnings growth. Normalised EBITDA rose 3% to $3.0 million, while cash decreased to $4.2 million from $5.7 million—a shift management attributes to timing rather than underlying business deterioration.

Looking to FY2027, RAS Technology plans to leverage AI and automation to enhance product innovation, improve operational scalability, and expand multilingual content. The company also expects to benefit from the integration of the LeoVegas Group, positioning it for accelerated growth.

Change Financial reaches profitability milestone

Change Financial Ltd achieved a significant milestone in FY2026, posting its maiden full-year profit of US$0.5 million on revenue of US$18.2 million, up 21% year-over-year. The company's Platform-as-a-Service (PaaS) offering emerged as a key growth driver, with active cards surging 104% to over 150,000.

The fintech company generated positive net cash flow of US$1.5 million from operating activities, demonstrating improving unit economics. Management expects the PaaS platform to continue driving momentum in FY2027, with targeted gross margins of 40-45% and expectations for the company to remain net cash flow positive.

Change Financial will transition to AUD reporting from FY2027 onwards, reflecting its growing focus on the Australian market where new client wins are accelerating.