TNE Analysis: Technology One FY25 Results

Event: Technology One FY25 Results | Date: 2025-11-18 | Source: ASX Announcement

FY25 Results Deliver Record Profits and Special Dividend Despite Share Price Drop

Technology One Limited (ASX: TNE) released its FY25 full-year results on 18 November 2025, reporting record revenue of $598.5 million, up 9.1% year-over-year, driven by strong SaaS ARR growth of 18% to $554.6 million, achieved 18 months ahead of target. Profit before tax increased 19% to $181.3 million, with EBITDA margins expanding to approximately 44%, reflecting operational efficiency and the successful SaaS+ model rollout with over 40 implementations. The company declared a final dividend of 6.6 cents per share, up 30%, plus a special dividend of 10 cents, totaling $126 million in shareholder returns. However, the share price fell 13% on the announcement, attributed to missing some ARR growth expectations despite the overall beat, as noted in the ASX results presentation.

UK operations showed robust momentum with 49% ARR growth to $51.8 million, though profits compressed to $1.5 million from $2.9 million due to investments in sales and marketing. Management set an ambitious new target of $1 billion+ ARR by FY30, supported by a "robust" sales pipeline and continued R&D investment of 25.7% of revenue. The results highlight the ongoing transition to SaaS+, with consulting revenue declining as services bundle into subscriptions, but overall financial health remains strong with net cash of $319.6 million and zero debt.