Objective Corp's Growth Story Hits a Snag on a Lost Defence Contract
Fund managers liked the accelerating recurring revenue at the govtech provider, until a lost defence contract prompted an exit
10 Jul 2026 · 3 min read
In short
Objective Corporation's annual recurring revenue grew 15% to $120 million in FY25, with Planning & Building ARR up 31%.
Lakehouse Capital says Build is already processing 50% of New Zealand's planning approvals and is nearing an Australian rollout.
NorthStar Impact Funds sold its position in July 2026 after Objective lost a high-margin defence contract.
A strong FY25 result and accelerating recurring revenue drew fund managers into Objective Corporation, the government technology provider, before a lost defence contract prompted at least one holder to sell out entirely in mid-2026.
Buying into accelerating recurring revenue
NorthStar Impact Funds initiated its position in July 2025, drawn to Objective's role as a technology solutions provider to local councils, helping improve financial and operational efficiencies for regulatory and documentation approval, and to what it saw as multiple levers for growth including global expansion.
Lakehouse Capital's August 2025 review filled in the detail behind that growth. Annual recurring revenue accelerated in the second half of FY25 to finish the year up 15 per cent at $120 million, while revenue and EBITDA both grew a more modest 5 per cent to $124 million and $46 million respectively. All three segments delivered double-digit ARR gains, led by Content Solutions, where early customer migrations to the new cloud platform lifted average contract value by 2.3 times.
The strength was even more evident in Planning & Building, which grew ARR by 31%, underpinned by Build — a platform already processing 50% of New Zealand's planning approvals and now on the cusp of rollout in Australia, a market roughly five times larger. With ample runway across the business, founder Tony Walls at the helm with a strong track record of patient capital allocation, and a cash balance of $99 million, we believe the best days for Objective still lie ahead.
— Lakehouse Capital, Monthly Report, August 2025
A lost defence contract changes the calculus
The picture shifted by July 2026, when NorthStar Impact Funds said it had sold its position after Objective lost a high-margin defence contract that week. NorthStar described the holding as one it had debated closely, given its own mandate requires investments with a dual financial and social or environmental return, a fit Objective had met, but one complicated by an open question over whether artificial intelligence was an enabler or a disruptor to the company's business. The share price had already come down enough, NorthStar said, to argue downside was limited, until the contract loss changed that calculation.
Questions
How fast is Objective Corporation's recurring revenue growing?
Lakehouse Capital reported that Objective's annual recurring revenue accelerated to finish FY25 up 15% at $120 million, with the Planning & Building segment growing ARR by 31%.
What is Objective Corporation's Build platform used for?
According to Lakehouse Capital, Build is a planning and building approvals platform that already processes 50% of New Zealand's planning approvals and was, as of August 2025, on the cusp of rolling out in the larger Australian market.
Why did NorthStar Impact Funds sell its stake in Objective Corporation?
NorthStar Impact Funds said it sold Objective Corporation in July 2026 after the company lost a high-margin defence contract, which changed its view that the share price already reflected limited downside.
5 managers, 7 comments, with each manager's latest recorded position.
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