How Objective Corporation’s 15% ARR Growth Signals a SaaS Revolution in GovTech
Objective Corporation Limited reported a robust FY2025 with 15% growth in annualised recurring revenue, driven by strong SaaS adoption and strategic AI integration across its GovTech portfolio.
- Revenue reaches $124 million, up 5% year-on-year
- Annualised recurring revenue (ARR) grows 15% to $120 million
- Adjusted EBITDA rises 5% to $46 million with 39% margin
- Significant R&D investment at $31 million, 30% of software revenue
- Acquisition of GIS e-planning provider Isovist expands Planning & Building segment
FY2025 Financial Performance
Objective Corporation Limited has delivered a solid financial performance for the fiscal year 2025, posting total revenue of $124 million, a 5% increase over the previous year. The company’s annualised recurring revenue (ARR), a key metric for its subscription-based software business, surged 15% to $120 million, underscoring the growing dominance of its SaaS offerings. Adjusted EBITDA climbed 5% to $46 million, maintaining a healthy margin of 39%, while net profit after tax rose 13% to $35 million. Cash reserves also improved slightly to $99 million, reflecting strong operational cash flow.
Driving Growth Through Innovation and SaaS Transition
The company’s strategic pivot towards subscription revenue continues to pay dividends, with recurring revenue now representing 84% of total revenue. This transition is supported by a 28% compound annual growth rate in SaaS revenue over the past five years, contrasted with a decline in non-recurring revenue. Objective’s commitment to innovation is evident in its substantial $31 million investment in research and development, accounting for 30% of software revenue. This investment fuels advancements in AI integration, cloud migration, and product enhancements across its core business lines.
Business Line Highlights and Expansion
Objective’s three main business lines; Content Solutions, Planning & Building, and Regulatory Solutions; all reported strong ARR growth, ranging from 12% to 31%. Notably, the Planning & Building segment expanded with the launch of Objective Build in Australia and the acquisition of Isovist, a New Zealand-based GIS e-planning SaaS provider. This acquisition, valued at NZ$5.5 million, adds $2.2 million in ARR and strengthens Objective’s position in the fast-growing planning and development market.
Content Solutions saw significant cloud migration activity, including a major contract with the Scottish Government to move 18,500 users to the cloud-based Objective Nexus platform. Meanwhile, Regulatory Solutions enhanced its product suite with the upcoming RegWorks v7 release, featuring in-app scripting, GIS mapping, and advanced dashboards to improve regulatory compliance and decision-making.
Strategic Outlook and Growth Ambitions
Looking ahead to FY2026, Objective aims to sustain its momentum with a target of 15% ARR growth. The company plans to balance this growth with profitability by continuing to invest in AI capabilities across its product portfolio and pursuing both organic expansion and strategic acquisitions. Emphasizing customer success and operational scalability, Objective is positioning itself to capitalize on the increasing demand for GovTech solutions that drive stronger communities and more efficient public sector services.
Bottom Line?
Objective’s FY2025 results set a strong foundation for ambitious ARR growth and AI-driven innovation in the evolving GovTech landscape.
Questions in the middle?
- How will Objective manage the balance between aggressive R&D spending and profitability?
- What impact will the Isovist acquisition have on market share in Australia and New Zealand?
- How quickly can Objective accelerate customer migration to cloud-based SaaS platforms?
