Technology One Limited (ASX:TNE) has delivered its 16th consecutive year of record profit, revenue and SaaS fees, driven by strong adoption of its SaaS+ model and accelerating growth in the UK. For the year to 30 September 2025, profit before tax rose 19% to $181.5 million, beating upgraded guidance issued in May. Profit after tax increased 17% to $137.6 million, while group revenue grew 18% to $610 million. SaaS and recurring revenue climbed 19% to $553.2 million.
Annual recurring revenue (ARR) reached $554.6 million, up 18% and now representing 91% of total revenue. TechnologyOne surpassed the $500 million ARR milestone in the first half of FY25, well ahead of schedule, and has set a new long-term target of exceeding $1 billion in ARR by FY30. Growth was strong across key verticals: Local Government ARR rose 22%, Higher Education 24% and Government 8%. The company also delivered a top-tier net revenue retention rate of 115%.
SaaS strategy drives growth
A major performance driver was the company’s SaaS+ strategy, which bundles cloud ERP software and implementation services into a single fee. This approach reduces delivery risk and timeframes while shifting revenue away from lower-value, one-off consulting work toward higher-quality, recurring income.
Management reports that SaaS+ is generating about a 40% uplift to new ARR. TechnologyOne is also targeting significant implementation efficiencies, aiming to reduce delivery time for core ERP to 30 days by 2028, down from the current OneBase timeframe of 126 days.
UK target
The UK market has emerged as a key growth engine, with UK ARR rising 49% to $51.8 million and UK sales ARR up 52% to $13.1 million.
Wins in Local Government and Higher Education have accelerated following nearly two decades of investment in the region.
The group’s strong financial performance translated to a Rule of 40 score of 59%, positioning TechnologyOne in the top quartile of global SaaS companies.
Record dividends
Shareholders will receive a record ordinary dividend of 26.6 cents per share, up 19%, along with a 10-cent special dividend.
Total dividends for the year rose 63% to 36.6 cents per share, equivalent to an 87% NPAT payout. Free cash flow increased 55% to $184.2 million, representing 134% of NPAT, while cash and investments grew to $319.6 million.
This strong financial position is supporting continued organic R&D investment of $153.7 million—around 25% of revenue—and ongoing bolt-on acquisitions such as CourseLoop, which further expands the company’s Higher Education offering.
Overall, TechnologyOne enters FY26 with record momentum, a rapidly scaling SaaS+ model, a strengthening UK business and a clear pathway towards its new long-term ARR goal.