Technology One shares plunge following annual recurring revenue growth miss
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More news: Technology One shares plunged in morning trade after reporting a slight miss to annual recurring revenue in FY25 and not providing specific FY26 guidance, although other sales and earnings figures were largely in line with expectations.
At 11:50am AEDT, shares in Technology One had fallen 13.2% to $30.67 and were leading losses on the ASX 200.
RBC Capital Markets analyst Garry Sherriff said the software provider’s sales and earnings were in line with expectations but annual recurring revenue growth of 18% missed consensus expectations of 21% growth.
Sherriff noted that Technology One management said it would provide guidance at its annual general meeting on 18 Feb and 1H26 results on 19 May 2026.
What they said: “Tech has been under pressure of late, today's print is largely in line, made sweeter with a special dividend 10cps beating RBCe by 44% and Consensus by 41%. Partially offset by the slight FY25 ARR growth miss to street and no specific FY26 guide which may take a bit of the shine off from some of the bulls,” Sherriff said.
Technology One full-year profit lifts 17%, declares special dividend
The news: Software provider Technology One has delivered a 17% year-on-year increase in profit after tax to $137.6 million, the 16th consecutive year of record profit amid record SaaS fees and its UK expansion, according to the company.
The numbers: Technology One profit before tax came in at $181.5 million up 19% beating guidance of 13% to 17% growth set in May 2025. Total revenue also lifted 18% to $137.6 million.
The company declared a full year dividend of 20 cents per share, up 15% on the previous year, as well as a special dividend of 10 cents per share.
Total annual recurring revenue (ARR) was up 18% to $554.6 million, with UK ARR up 52%.
What they said: “The success we are having today is from our investments five years ago, and the success we will have in future is from the investments we are making now,” Technology One CEO Ed Chung said.
The sources: ASX, RBC Capital Markets research
