Objective’s Results Spark 19% Gains, but Is the Growth Just Beginning?

Objective Hits Record Highs as Recurring Revenue Powers Growth

Objective Corporation (ASX:OCL) gave investors plenty to celebrate after its 2025 full-year results sent the stock up 19 percent to fresh all-time highs. For patient shareholders, the rally capped an impressive 80 percent return over the past year. The company has been steadily reshaping itself into a pure subscription-based SaaS business, and that shift is now paying off with a growing stream of recurring revenue. 

In a market where investors prize stability and predictability, Objective’s transition has turned it into one of the more compelling GovTech stories on the ASX. The question now is whether this surge represents the start of a longer growth runway or if much of the good news is already priced in. Understanding how Objective is balancing reinvestment, profitability, and innovation will help determine where the stock might head next.

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Objective Corporation Explained

Objective Corporation is a GovTech software company that develops cloud-based solutions to help governments and regulated industries operate more efficiently, securely, and transparently. Its products are used for managing government documents, handling planning and building approvals, and ensuring regulatory compliance. 

Today, nearly all of Objective’s revenue comes from a recurring subscription model, where customers pay ongoing fees to use its platforms. This shift has created a more predictable and stable income stream, positioning the company as a reliable long-term player in the digital transformation of government services.

Objective Delivers Steady Growth with Strong Recurring Revenue

Steady Growth, Powered by Recurring Revenue

In FY25, Objective reported revenue of $123 million, up 5 percent year on year. Importantly, annualised recurring revenue now accounts for 84 percent of total revenue, highlighting the strength of its subscription model. 

By business line, Content Solutions generated $83.4 million in revenue (+4 percent) with ARR of $85.1 million (+12 percent). 

Planning & Building delivered $13.1 million (+6 percent) with ARR up sharply to $18.2 million (+31 percent). 

Regulatory Solutions contributed $23.6 million (+6 percent) with ARR of $16.9 million (+17 percent). The standout growth in Planning & Building reflects rising demand for digital tools that support local councils and government development initiatives.

Operating Leverage on Show: EBITDA +5% to $46m, NPAT +13%

Profitability remained strong, with adjusted EBITDA rising 5 percent to $46 million at a 39 percent margin. Net profit after tax increased 13 percent, with earnings per share also improving by 13 percent. Profit growth outpacing revenue growth highlights the operating leverage in Objective’s SaaS model and the efficiency of its recurring revenue base.

R&D Investment Up 11% to $31m, Fueling Growth Platforms

Objective continues to prioritise growth, investing $31 million in research and development, up 11 percent year on year and equal to 30 percent of software revenue. Key initiatives included the expansion of its Build platform in New Zealand and the acquisition of Isovist, a specialist in digital mapping of land, zoning, and regulations. 

This acquisition strengthens Objective’s Planning & Building offering by providing councils with smarter, map-based planning tools while adding $2.2 million in recurring revenue.

The Investors Takeaway

For investors seeking steady, conservative growth, Objective offers an appealing mix. Governments provide a reliable and stable customer base, while the company’s strong recurring revenue underpins predictability. Alongside this, shareholders benefit from a modest dividend yield of around 1 percent. With the ability to reinvest heavily in innovation while also returning capital, Objective is positioned as a balanced opportunity for growth-oriented investors who value stability.