Top ASX Tech Stocks for 2025: Here Are Our Top 5 Picks

Here Are Our 5 Top ASX Tech Stocks for 2025!

Objective Corp (ASX:OCL)

Objective Corporation has software products that can handle common problems or manually intensive tasks local governments and businesses in highly regulated sectors undertake on a daily basis as well as to store data. This software increases the ease, security and efficiency with which such tasks can be accomplished.  

It had difficult couple of years from 2022 to 2023 from a share price perspective, due to the Tech Wreck, but 2024 saw it turn a corner and climb over 30%. In case we forget to mention this later, Objective has not raised a cent of capital ever since and has been 65% owned by founder and CEO Tony Wall.

For FY24, the company made $118m in revenue (up 6%) and $105m in Annualised Recurring Revenue (ARR) (up 11%). Its EBITDA was up 66% to $44m and it made a $31m profit (up 49%). The company closed the period with $96m in cash and paid 17cps in dividends. Crucially, the company continued to edge towards its goal of having 100% subscription software.

For FY25, estimates call for $126.6m in revenue (up 7%), $48.7m EBITDA (up 10%) and $0.35 EPS which translates to a $33.3m profit (up 7%) with 95m shares on issue. For FY26, $140.3m revenue, $56.3m EBITDA and a $39m profit (up 11%, 16% and 17% respectively).

ReadyTech (ASX:RDY)

Sticking with SaaS stocks that target governments and businesses in highly regulated (or important) sectors here…ReadyTech provides SaaS technology in Australia and operates in three segments: Education, Workforce Solutions and Government and Justice.

In FY24, the 12 months to June 30 2024, ReadyTech recorded $113.8m in revenue ($95.4m of which was subscription revenue), a figure up 10% from the year before. The company boasted 22 major enterprise contract wins across all segments worth $12.5m. Average revenue per new customer was $119.1k.

ReadyTech’s underlying EBITDA was $38.8m, up 11.5% and representing a 34% margin. Its profit was $5.5m, up 9%. The company has advised shareholders to expect organic revenue growth to be in the low to mid double digits and a 34-35% EBITDA margin.

We expect ReadyTech to continue its notable rate of growth for the next few years as it is heavily investing in R&D and is opening doors to new customers and markets. It is aiming to achieve over $170m in organic revenue in ‘the medium term’ and a cash EBITDA margin of over 20%.

Xero (ASX:XRO)

Does Xero (ASX:XRO) have any growth left in it? Xero thinks it does. The company believes its TAM (Total Addressable Market) is NZ$100bn and that is just the top 3 jobs its software is used for – Accounting, Payroll and Payments. Adjacent Tasks, including other tasks such as inventory, CRM and project management, could be another $39bn.

In the near future it is aiming to achieve:

• Keeping total operating expenses as a percentage of revenue to around 73%.
• Abiding by Rule of 40. This states that if a SaaS company’s revenue growth rate is added to its profit margin, the combined value should exceed 40%. This was achieved in FY24.
• The goal of doubling revenues by the end of FY27.

TechnologyOne (ASX:TNE)

TechnologyOne is a tech stock specialising in Enterprise resource planning (ERP) software with a focus on the education and government. This company has over 800 large scale enterprise organisations, with millions of users, as clients. Beyond the dozens of councils it has helped, other clients include Queensland Rugby League, the Te Papa Museum in New Zealand and several universities. Its products perform several tasks for customers including reducing costs, improving efficiency and streamlining processes. In the last five years, its revenue has transitioned from one-off license fees to recurring SaaS fees.

NextDC (ASX:NXT)

NextDC has been the most exposed ASX stocks to data centres, and it has shown in its growth from an $80m Bevan Slattery-led start up to a $9bn+ company. The company just keeps generating revenue from its data centres and is able to keep opening new ones – it is in the early stages of international expansion. We know data centre demand is only going in one direction, and think NEXTDC could be the best way to pounce on this demand.

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