Objective Corporation reports robust FY2025 results with strong recurring revenue growth and deepening AI integration, setting ambitious targets for FY2026.
- 15.1% annualised recurring revenue (ARR) growth in FY2025
- 39% adjusted EBITDA margin reflecting profitable growth
- 30% of software revenue reinvested into R&D, leading GovTech innovation
- Expansion into Australian, UK, and North American markets
- Acquisition of e-planning software provider Isovist to enhance planning solutions
Strong Foundations and Milestones
Marking 25 years since its ASX listing, Objective Corporation (ASX – OCL) has delivered a compelling FY2025 performance that underscores the resilience and innovation at the heart of its GovTech business model. CEO Tony Walls highlights the company’s enduring commitment to public sector customers, particularly in managing sensitive information with the trust and security that government and regulated industries demand.
From its early days securing the Australian Department of Defence as a client, Objective now supports over 2,000 customers globally, including more than 130,000 users within Defence alone. This scale reflects a long-term partnership approach, with many clients engaged for over a decade, reinforcing Objective’s role as a trusted technology provider.
Innovation and AI Integration
Objective’s FY2025 results were powered by a significant R&D investment, with 30% of software revenue reinvested into developing new capabilities. Over the past four years, this has amounted to $112 million, fueling advancements such as the Objective Intelligence (OI) platform. OI offers a secure, flexible AI framework that allows customers to deploy multiple AI models; including commercial, open-source, or custom-built; while maintaining control over their data and infrastructure.
Rather than simply providing AI tools, Objective focuses on embedding AI into practical solutions tailored to public sector challenges. For example, Objective Build assists local government planning departments by automating routine tasks like summarising submissions and generating draft reports, accelerating approvals without compromising transparency or safety. Similarly, Objective RegWorks uses AI-driven chatbots to manage surges in regulatory enquiries, enhancing public engagement and operational efficiency.
Geographic Expansion and Strategic Acquisition
FY2025 saw Objective deepen its footprint in key markets. The launch of Objective Build in Australia, supported by foundational partnerships with six councils and integration with the NSW Planning Portal, positions the company to address housing supply challenges through faster planning decisions. In the UK, the Scottish Government’s commitment to migrate to Objective’s Nexus cloud platform signals growing trust and adoption, while North American operations have been scaled cautiously to capture emerging opportunities.
The acquisition of Isovist, a specialist in e-planning software, further strengthens Objective’s domain expertise and accelerates AI-driven transformation in planning and development processes across Australia and New Zealand.
Outlook and Strategic Discipline
Looking ahead to FY2026, Objective targets 15% ARR growth and profit growth exceeding that rate, supported by a robust balance sheet and a disciplined approach to capital allocation. The company remains focused on organic growth complemented by selective mergers and acquisitions that align with its strategic vision and deliver shareholder value.
With a culture recognised among Australia’s Best Workplaces in Technology™ 2025, Objective is well-positioned to continue innovating at the intersection of AI and public sector governance, navigating regulatory complexities while delivering meaningful outcomes for communities worldwide.
Bottom Line?
Objective’s blend of innovation, trusted partnerships, and disciplined growth sets the stage for sustained leadership in GovTech’s AI-driven future.
Questions in the middle?
- How will Objective balance AI innovation with evolving regulatory and privacy demands?
- What are the financial impacts and integration plans for the Isovist acquisition?
- How will Objective scale its North American operations amid competitive GovTech markets?