Objective Corporation Posts 5% Revenue Growth and $35.4M Net Profit in FY2025
Objective Corporation Limited reported a solid 5% revenue increase to $123.5 million and a 13% rise in net profit after tax to $35.44 million for FY2025, alongside a strategic acquisition that broadens its e-planning software portfolio.
- 5% revenue growth to $123.5 million
- 13% increase in net profit after tax to $35.44 million
- Annualised Recurring Revenue up 15% to $120.2 million
- R&D investment rises 11% to $31.2 million, 30% of software revenue
- Acquisition of Isovist Holdings Limited completed post-year-end
Financial Performance Highlights
Objective Corporation Limited has reported a robust financial performance for the year ended 30 June 2025, with group revenue increasing by 5% to $123.5 million and net profit after tax rising 13% to $35.44 million. This growth was underpinned by a strong subscription-based revenue model, with 100% of software revenue contracted under subscriptions and recurring revenue representing 84% of total customer revenue.
Annualised Recurring Revenue (ARR), a key indicator of future contracted revenue, grew by 15% to $120.2 million. This was driven by solid gains across all business segments – Content Solutions ARR rose 12%, Planning & Building surged 31%, and Regulatory Solutions increased 17%. Earnings per share also improved to 37.2 cents, reflecting the company’s enhanced profitability.
Strategic Business Developments and R&D Investment
Objective’s commitment to innovation is evident in its increased research and development expenditure, which rose 11% to $31.2 million, representing 30% of software revenue. The company continues to focus on cloud-first solutions, with significant progress in migrating major clients such as the Scottish Government to its next-generation cloud platform, Objective Nexus.
Key product advancements include enhanced AI capabilities integrated into Objective 3Sixty and Objective Intelligence, improving data governance and accelerating information management tasks. The Planning & Building segment launched Objective Build in Australia, targeting local government planning professionals, while the Regulatory Solutions segment expanded its footprint with new contracts in Western Australia and New Zealand, reinforcing its position in government regulation technology.
Capital Position and Dividend Policy
Objective maintains a strong balance sheet with no external borrowings and a cash balance of $99.2 million, up 3% from the prior year. Operating cash flow was $46.3 million, supporting ongoing investment and shareholder returns. The company declared a final unfranked dividend of 13.0 cents per share, payable on 16 September 2025, reflecting a 29% increase in total dividends compared to the previous year. Notably, the Dividend Reinvestment Plan remains suspended, which may influence shareholder participation.
Acquisition Expands E-Planning Capabilities
Post year-end, Objective completed the acquisition of Isovist Holdings Limited, a New Zealand-based specialist in e-planning software for local government. This acquisition complements Objective’s existing Planning & Building segment by transforming static planning processes into dynamic digital solutions, positioning the company to address growing demand in urban planning and development.
The acquisition, valued at NZ$5.46 million including cash balances, signals Objective’s strategic intent to broaden its product suite and geographic reach, leveraging its strong financial position to pursue growth opportunities beyond organic expansion.
Outlook and Market Position
The Board expresses confidence in the company’s growth prospects for FY2026, emphasizing continued investment in product innovation and market development while maintaining a focus on profitability. With a diversified customer base predominantly in government sectors across Australia, New Zealand, and the UK, and a growing presence in the US, Objective is well-positioned to capitalize on increasing demand for SaaS-based governance, planning, and regulatory solutions.
Investors will be watching how the integration of Isovist and ongoing cloud migration projects translate into revenue growth and margin expansion in the coming periods.
Bottom Line?
Objective Corporation’s strong FY2025 results and strategic acquisition set the stage for accelerated growth, but market watchers will be keen to see how these investments convert into sustained profitability.
Questions in the middle?
- How will the Isovist acquisition impact Objective’s revenue and margins in FY2026?
- What is the timeline and expected cost for migrating remaining on-premise customers to the cloud?
- Will the Dividend Reinvestment Plan suspension continue, and how might this affect shareholder returns?