TechnologyOne reports 18% jump in EBITDA for FY25

TechnologyOne has reported double digit upticks in key financial metrics, when compared to the prior period, in its results for the year ended 30 September 2025.

Profit After Tax was up $137.6 million, up 17% from $118 million in FY24, while EBITDA rose 18% from $215.8 million in FY24 to $255.7 million in FY25.

Annual Recurring Revenue (ARR) was up 18% to $554.6 million, compared to $470.2 million in FY24, and is on track to $1 billion+ ARR by FY30, according to the company.

TechnologyOne attributed part of this growth to its SaaS+ offering, established in 2023 by combining its global SaaS ERP solution and implementation in one single fee, "removing the need for traditional, complex, long, risky and expensive consulting implementations".

"The shift from traditional new project consulting revenue to SaaS+ revenue is showing similarities to our completed transition from legacy license fees to SaaS revenue," the company stated in a release accompanying the results.

"This strategic move over time removes lower-quality, one-off traditional consulting revenue and replaces it with high-quality SaaS+ recurring revenue which represents a 40% uplift to new ARR.

"Notwithstanding our strategic shift to SaaS+ and the short-term headwind to our margin growth, we anticipate that group margins will continue to improve to 35%+ in the coming years, driven by the significant economies of scale from our single-instance, multi-tenanted global SaaS ERP solution and the customer response to SaaS+."

TechnologyOne also said that it upheld its "ambitious" R&D investments to enable it to continue to double in size every five years. These investments included the addition of in-product AI enhancements, plus the acquisition of CourseLoop, a curriculum management solution.

Local gov and education driving growth

The company said that all of its key verticals performed "strongly" throughout the year, with the Local Government vertical growing 22%, up $39.4 million, Higher Education growing 24%, up $27.6 million, and Government growing 8%, up $6.7 million.

In Australia, the Central Coast Council signed an agreement to implement the company's OneCouncil and Property and Rating software, while Merri-bek City Council in Melbourne selected TechnologyOne to replace multiple ageing legacy platforms to modernise their services and strengthen their digital capabilities. 

In the Higher Education vertical, the TechnologyOne team reportedly closed the most deals in its history during FY25, driven by "decisive wins" in Australia, including TasTAFE.

“The success we are having today is from our investments 5 years ago, and the success we will have in future is from the investments we are making now," Ed Chung, CEO of TechnologyOne said.

"When you think of game changing technology a few things come to mind. iPhones changed the market for mobile phones, Tesla changed the market for vehicles, UBER changed the market for how to catch a cab and now that we have Ai and SaaS+, TechnologyOne is changing the market for ERP and unlocking value for our customers.”