The Objective Corporation Ltd (ASX: OCL) share price is in focus after the company posted a 9% lift in revenue to $66.7 million and a 10% increase in net profit after tax, reaching $18.7 million for the first half of FY2026.
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What did Objective Corporation report?
- Group revenue rose 9% to $66.7 million
- Adjusted EBITDA increased 11% to $25.9 million
- Net profit after tax was up 10% to $18.7 million
- Annualised recurring revenue (ARR) grew 12% to $120 million
- Operating cash flow rose to $21.7 million, up from $12.6 million in 1HY2025
- Interim unfranked dividend of 13 cents per share declared
What else do investors need to know?
The company continued its strong investment in research and development, spending $16.6 million in the half—equivalent to 28% of software revenue. Over half of this, $8.7 million, was capitalised to support long-term product innovation.
Objective finished the period with a healthy cash balance of $95.1 million and no external borrowings, highlighting a robust balance sheet. The acquisition and full integration of Isovist during the half supported growth in the Planning and Building business line, which posted a 39% increase in revenue.
What did Objective Corporation management say?
CEO Tony Walls commented:
Through 1HY2026 we have built a solid foundation for the remainder of the year, and well into FY2027. While acknowledging there is work yet to do, we approach the second half with confidence. We will continue investment to support the strong momentum in each of our lines of business while delivering strong profit and cash flow margins, to sustain the flywheel of Innovation that underpins our long-term business success. For FY2026, we expect ARR growth to be in the range of 10-14%, on a constant currency basis, recognising that Objective Build in Australia will most likely contribute modestly this year, but provide a strong platform for FY2027. We continue to invest in-line with our internal growth target of 15% annual ARR growth.
What's next for Objective Corporation?
Objective expects annualised recurring revenue growth between 10% and 14% in FY2026. The company is focusing on increasing its investment in go-to-market capability and further deepening its domain expertise to drive sales growth across its core business areas.
Ongoing investment in both organic development and strategic M&A is part of the company's plan to build on recent momentum and deliver sustainable returns to shareholders. Management remains optimistic about achieving its 15% annual ARR growth target over time.
Objective Corporation share price snapshot
Over the past 12 months, Objective Corporation shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.
