Why this ASX tech share is an exciting buy right now

A fund manager is bullish on what this tech company can achieve.

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Key points

  • Energy One is gaining attention for its potential strong returns as it still has a lot of growth potential
  • The company reported a robust financial performance in FY25, with revenue growth of 17%, a 57% increase in cash operating profit, and a 74% rise in net profit after tax, driven by its operating leverage.
  • Looking forward, Energy One is poised for further growth with expansion in Europe, promising pipeline and order book for FY26, and a focus on inorganic growth strategies through acquisitions and partnerships.

Some ASX tech shares get a lot of attention such as WiseTech Global Ltd (ASX: WTC) and REA Group Ltd (ASX: REA). But, there are smaller ones which could deliver strong returns because they're earlier on in their growth journey. Energy One Ltd (ASX: EOL) is one of the stocks that investors should keep an eye on.

One of the fund managers that likes Energy One is Wilson Asset Management, which is also called WAM. The investment team described Energy One as a business that provides mission-critical software and services to energy and utilities companies that are engaged in energy trading.

Wilson Asset Management said that the ASX tech share has delivered strong and consistent growth. WAM is expecting a lot more from the business.

Strong financial performance

In the 2025 financial year, the company reported revenue growth of 17% to $61.4 million and annual recurring revenue (ARR) jumped 22% to $60.4 million.

The rise in revenue helped its profitability surge, thanks to the operating leverage nature of a software business.

For the 12 months in FY25, Energy One's cash operating profit (EBITDA) jumped by 57% to $10.5 million, while net profit after tax (NPAT) increased by 74% to $5.9 million.

Why the ASX tech share has an exciting future

The fund manager said that the company has continued to expand in Europe, with expectations that the region will be a major contributor for growth in the coming years.

In September 2025, Energy One shares benefited from index-flow tailwinds after being added to the S&P/ASX All Technology Index (ASX: XTX) on 22 September 2025.

The investment team from Wilson Asset Management said:

Longer term, we think this is a compelling investment as a fast growing and highly profitable technology company benefitting from the growth in renewable energy.

The ASX tech share said it's starting FY26 with a strong pipeline and order book. Sizeable deals that were expected to be billed in FY25 were signed late in the year, or July, which will now be billed in FY26. It said $4 million of ARR signed (or in-contract) implies ARR growth of 7% already in FY26. The company also highlighted $1.7 million of new project revenue as well as in-flight projects spanning financial years.

If all signed and delivered, this gives the ASX tech share 9% revenue growth already in FY26.

The company said inorganic growth is in focus for the year ahead, scaling up through disciplined acquisitions and/or strategic joint ventures and partnerships.

The ASX tech share said that its "trajectory of 15% to 20% revenue growth and margin expansion remains a key focus in FY26."

Overall, the company has a very exciting future in the year ahead and beyond.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Energy One and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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