Objective Corporation share price crashes 18% on FY26 earnings

The Objective Corporation Ltd (ASX: OCL) share price is down 18% to $6.11 on Thursday after the company reported FY2026 revenue of $135 million, up 9% on the prior year, and adjusted EBITDA of $52 million, an 11% increase.

What did Objective Corporation report?

• Total revenue reached $135 million, up 9% from FY2025
• Annualised recurring revenue (ARR) was $121 million in constant currency
• Adjusted EBITDA climbed 11% to $52 million
• Net profit after tax rose 5% to $37 million
• Final dividend was 26 cents per share (8c fully franked, 18c unfranked)
• Operating cash flow was $49 million, representing 94% of adjusted EBITDA

What else do investors need to know?

Objective continued to invest heavily in innovation, with $34 million (30% of software revenue) directed to research and development during the year—part of a $146 million cumulative investment over five years. Subscription software revenue now accounts for 100% of the company’s software revenue, with SaaS revenue specifically growing 22% over FY2026.

By business line, Regulatory Solutions delivered 7% ARR growth, Information Intelligence ARR dipped 5%, and Planning & Building ARR rose 3%. The company highlighted its strong position in AI-driven solutions across government and regulated industries, with ongoing expansion in both the Australian and international markets.

What’s next for Objective Corporation?

Looking ahead to FY2027, Objective is targeting adjusted EBITDA above $40 million, which would be down a disappointing 23% year on year.

The company plans to further sharpen its go-to-market approach and cost discipline as it pursues larger, more complex opportunities in the GovTech sector. Management also signalled ongoing M&A ambitions, supported by a robust balance sheet and cash flow.

Product leadership and customer value remain a priority, with efforts focused on delivering trusted, AI-enabled solutions for public sector clients. The company believes its strengths in information governance, security and compliance will keep it well-placed for future growth.

Objective Corporation share price snapshot

Objective Corporation shares have performed very poorly in comparison to the S&P/ASX 200 index (ASX: XJO) over the past year with a decline of around 70%.

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The post Objective Corporation share price crashes 18% on FY26 earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Objective. The Motley Fool Australia has positions in and has recommended Objective. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.