Fund Manager Summary on TechnologyOne Ltd (ASX:TNE)
In December 2025, Spheria Asset Management commented that TechnologyOne Ltd (ASX:TNE) experienced a share pullback amid broader sector weakness despite FY25 results showing ARR growth, strong UK momentum and higher pre-tax profit, and that with a net cash balance of A$320 million and trading around 30x FY27 EV/EBIT the valuation looks reasonable relative to peers. Across fund manager commentary through 2025 the consensus view is that TechnologyOne’s transition to SaaS—especially the SaaS+ offering—plus strong execution and UK expansion are driving durable ARR growth, high net revenue retention and low churn underpinning record revenues and profit upgrades, with managers noting milestone achievements (A$500m ARR reached ahead of schedule and a stated ambition to exceed A$1,000m ARR by FY30) and UK ARR rising in the 40–50% range as evidence of structural tailwinds; opportunities cited include adoption of SaaS+ (which boosts ARR per customer and lowers implementation friction), deeper penetration in defensive public-sector verticals, cross-sell within a loyal customer base and potential AI-driven productivity gains that could lift margins, while risks and tactical considerations flagged by several managers include stretched valuation metrics (some citing EV/EBITDA in the c.50x range and P/E multiples above 80x), sensitivity to technology-sector sentiment and investor rotation, regional growth variability or supply constraints, and the need to sustain SaaS+ penetration and UK new-sales ARR to justify multiple expansion—actionable monitoring points are SaaS+ adoption rates and NRR, UK sales momentum and large contract wins, margin progression versus guidance, cash balance and capital allocation decisions, and whether near-term growth levers support the current valuation before adding or increasing exposure.
Commentary From The Managers
There are 24 insights from 16 fund managers regarding their investment in TechnologyOne Ltd (ASX:TNE) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Alphinity Investment Management
16 Mar 2026
$25.75
Summary
- Alphinity Investment Management continues to hold TechnologyOne Ltd because recent selling pressure is disconnected from the company strong underlying results.
- TechnologyOne reported strong financial results but was swept up in a broader technology selloff.
- Alphinity frames this as a "software paradox" where fundamentally sound businesses trade down due to macro headwinds.
- The manager views both TechnologyOne and Life360 as less exposed to AI disruption risk, placing them in a defensive software category.
Spheria Asset Management
31 Dec 2025
$27.96
Summary
- Spheria Asset Management believes TechnologyOne remains one of Australia’s highest‑quality software businesses and continues to hold because its double‑digit medium‑term revenue growth, potential for operating leverage and stronger earnings, a $320m net cash position and a ~30x FY27 EV/EBIT valuation that looks reasonable versus peers underpin attractive risk‑reward.
- Spheria Asset Management notes the shares declined 7% over the month in the absence of company‑specific news, reflecting broader sector weakness.
- Spheria Asset Management highlights the FY25 result: ARR +18% YoY, the UK delivered +42% growth (constant currency), and group pre‑tax profit +19%.
- Spheria Asset Management observes the result was broadly in line with expectations, but a prior share‑price rally and deteriorating sentiment toward tech led the market to expect more, precipitating a 17% intraday fall.
- Spheria Asset Management regards TechnologyOne as structurally well positioned to sustain double‑digit revenue growth over the medium term.
- Spheria Asset Management believes that revenue growth should drive operating leverage and support stronger earnings progression.
- Spheria Asset Management points out the company’s conservative balance sheet with ~$320m net cash, providing optionality and downside protection.
- Spheria Asset Management considers the current trading multiple of ~30x FY27 EV/EBIT to be reasonable relative to Australian peers.
Hyperion Asset Management
30 Nov 2025
$29.48
Summary
- TechnologyOne Ltd. released its FY25 results, showcasing strong annual performance.
- Annualised recurring revenue (ARR) increased by 18% to A$554.6 million, driven by new customer growth.
- Average ARR per customer also saw ongoing growth.
- Profit before tax rose by 19% to A$181.5 million.
- Continued success in the UK market, a long-term focus for the company.
- Despite market concerns regarding slower second-half results, Hyperion Asset Management remains confident in the long-term opportunities.
- Strong prospects in both ANZ and the UK due to a comprehensive product offering.
- Focus on specific, defensive end markets, particularly Local Government and Higher Education.
Selector Funds Management
30 Nov 2025
$29.48
Summary
- Selector Funds Management continues to hold a positive outlook on TechnologyOne (ASX:TNE) following their FY25 results.
- TechnologyOne reported revenue of $610m, marking an 18% increase year-on-year.
- Profit before tax reached $182m, up 19% from the previous year.
- Annual recurring revenue (ARR) grew 18% to $555m, surpassing the $500m target 18 months ahead of schedule.
- The company aims to double ARR every 5 years, driven by new client acquisitions and strong customer retention at 99%.
- Local government and higher education sectors performed notably well, with revenue increases of 22% and 24%, totaling $219m and $141m respectively.
- Over 20 significant deals were closed in local government, alongside a record number of deals in higher education.
- In the UK, ARR rose by 49% year-on-year to A$52m.
- TechnologyOne has successfully attracted larger clients, including its second London borough through the innovative SaaS+ solution.
- The company's current market capitalisation stands at $10b.
Ten Cap
30 Nov 2025
$29.48
Summary
- TechnologyOne Ltd (TNE) delivered a strong FY25 result, beating guidance.
- Consensus earnings were upgraded following the results.
- Despite strong performance, TNE's share price fell due to high expectations and moderation in key revenue growth metrics.
- Investor rotation into cheaper sectors contributed to the decline in share price.
- Ten Cap remains positive on TNE's growth outlook.
- Potential upside from expansion into the UK market is noted.
Pendal Group
24 Nov 2025
$30.04
Summary
- Pendal Group updates their investment thesis on TechnologyOne Ltd (TNE), noting a solid FY25 result.
- Annual Recurring Revenue (ARR) grew 18%, with strategic upfront investments maintaining margins.
- TechnologyOne achieved 19% PBT growth despite these investments.
- Free cash flow exceeded expectations, allowing for a dividend payout ratio increase to 65-75%.
- The company successfully offset stock-based compensation.
- Pendal Group views the management team as effectively balancing business operations to benefit all stakeholders.
- Market concerns regarding a slowdown in Asia Pacific ARR growth are seen as misplaced; the company faced supply constraints in FY25.
- New AI-enabled products and initiatives are expected to drive sustained strong growth.
- Pendal Group anticipates that consistent execution will be rewarded by the market in the long term.
Ten Cap
31 Oct 2025
$36.90
Summary
- Ten Cap has updated their investment thesis on TechnologyOne Ltd (TNE).
- They have added to their position in TNE.
- TNE is recognized as a leading enterprise software provider.
- The company boasts a strong recurring revenue base.
- TNE has demonstrated consistent earnings growth.
- The recent share price pullback was seen as an attractive entry point.
- Ten Cap views TNE as a high-quality compounder.
Alphinity Investment Management
10 Oct 2025
$39.77
Summary
- Alphinity Investment Management expresses a positive outlook on TechnologyOne, a developer of resource planning software.
- TechnologyOne targets sectors such as councils, schools, universities, hospitals, and government agencies.
- The company is focusing on growth opportunities in the United Kingdom, aiming to capture market share from Oracle and Workday.
- Recently, TechnologyOne entered the S&P/ASX 50, marking a significant milestone.
- They unveiled a ChatGPT-style product to enhance their software capabilities.
- According to Martin, the market may be undervaluing the company's potential for consistent mid-teens growth.
- This growth can be achieved without taking material risks.
Alphinity Investment Management
14 Aug 2025
$38.24
Summary
- Alphinity Investment Management continues to hold TechnologyOne due to its underappreciated status in the market.
- Despite a strong run, the company remains less understood compared to other large caps.
- TechnologyOne offers a leading enterprise resource planning solution specifically for the government and education sectors.
- It holds a strong position in defensive end-markets with a long runway of profitable growth.
- There is particular enthusiasm for TechnologyOne’s substantial growth potential in the UK market.
- Recent meetings with local UK government bodies and industry experts have validated significant commercial opportunities ahead.
Montgomery Investment Management
21 July 2025
$40.10
Summary
- Montgomery Investment Management recognizes TechnologyOne’s transformation under a focused Software as a Service (SaaS) strategy, enhancing its earnings growth trajectory.
- The company has established a strong presence in the UK since 2006, with significant growth in the education and local government sectors.
- Accelerating Annual Recurring Revenue (ARR) growth is noted, supported by a favorable digital transformation backdrop.
- TechnologyOne’s UK operations are expected to maintain sustained momentum due to its disciplined approach and strategic focus.
- The acquisition of Scientia for £12 million in 2021 has sharpened its higher education offerings, particularly in timetabling and student management.
- The launch of the SaaS+ platform has streamlined value propositions for councils and universities, enhancing appeal to budget-conscious public sector clients.
- In the first half of 2025, UK ARR reached A$43 million, up 50% year-on-year, significantly outpacing group ARR growth of 21%.
- New sales ARR climbed 61% to A$4.3 million, reflecting strong traction in government verticals and education.
- TechnologyOne is capturing market share from legacy players like SAP and Oracle, driven by its competitive advantage and structural improvements.
- The integration of Scientia is challenging competitors in the higher education sector, while OneCouncil is eroding shares of Civica and Capita in local government.
- TechnologyOne’s innovative SaaS+ model simplifies deployment, contrasting with the complexity of offerings from larger competitors.
- Montgomery Investment Management continues to hold because of the expected sustained growth driven by a strong competitive advantage and a large total addressable market.
- The company aims to double revenue every five years, supported by deeper market penetration and new government contracts.
Lakehouse Capital
30 June 2025
$41.01
Summary
- Lakehouse Capital sold their investment in TechnologyOne due to stretched valuations.
- The business performed well and the investment thesis largely played out as expected.
- Reluctance to exit high-quality businesses on valuation grounds alone.
- Capital could be better deployed in other opportunities.
- TechnologyOne remains a well-run, resilient business.
- Lakehouse Capital will continue to follow TechnologyOne's progress relative to its share price.
LHC Capital
30 June 2025
$41.01
Summary
- Technology One achieved A$500 million in annual recurring revenue (ARR) 18 months ahead of schedule.
- Shares increased by 48% during the quarter.
- LHC Capital continues to hold due to Technology One's sound execution of its business plan.
- Market-leading net revenue retention rates (NRR) and low customer churn rates.
- Record revenues, profits, and SaaS fees for the sixteenth consecutive year.
- Full year profit growth upgraded to 13-17%.
- New target of exceeding A$1,000m in ARR by FY30.
- First Federal Government department customer signed.
- Significant growth in the UK business with ARR up 50% year-on-year.
- SaaS Plus offering disrupts traditional ERP pricing strategies.
- Customers adopting SaaS Plus deliver 40% more ARR compared to traditional SaaS products.
- NRR expanded to 118% due to SaaS Plus adoption.
- Islington Council contract win validates tailored strategy for UK local government.
- All six verticals in Australia recorded double-digit ARR increases.
- Market share below 15%, indicating significant growth potential.
- Technology One continues to compound at a high rate supported by a recurring revenue base.
- Expected to double every five years as per updated ARR guide.
- Beneficiary of the AI revolution, anticipating productivity gains and improved profit margins.
- LHC Capital believes this positions for attractive returns over the medium term.
Alliance Bernstein
30 June 2025
$41.01
Summary
- TechnologyOne is an Australian enterprise software company focused on software-as-a-service solutions.
- The company specializes in serving government and large enterprises.
- Recent half-year results surpassed market expectations, contributing positively to performance.
- TechnologyOne shows substantial growth in annual recurring revenues.
- This growth enhances investor confidence in its long-term business model.
- Alliance Bernstein continues to hold its position in TechnologyOne due to these positive indicators.
Yarra Capital Management
30 June 2025
$41.01
Summary
- Yarra Capital Management notes TechnologyOne Ltd (TNE) has shown strong revenue and earnings growth.
- The company has made encouraging progress in the UK market.
- Despite the positive momentum, high valuation multiples (50.8-times EV/EBITDA and 83.8-times FY26 P/E) are seen as prohibitive.
- Yarra Capital Management continues to hold an underweight position due to better relative opportunities in the high growth technology sector.
Vinva Investment Management
30 June 2025
$41.01
Summary
- TechnologyOne (TNE) outperformed with a robust 1H25 result.
- Total revenue reached $291m, a 19% YoY increase.
- Annual recurring revenue (ARR) of $511m, reflecting a 21% YoY growth.
- Growth driven by accelerating UK expansion and SaaS+ adoption.
- PBT guidance for FY25 is 13–16%, noted as conservative.
- Vinva Investment Management continues to hold an overweight position in TNE.
- The investment thesis is supported by a mix of behavioural and quality signals.
Wilson Asset Management
31 May 2025
$41.10
Summary
- TechnologyOne Ltd is Australia’s largest enterprise Software-as-a-Service (SaaS) company.
- Share price reached an all-time high of $41.35 in May.
- Strong results released on 20 May for the half year ended 31 March 2025 exceeded investor expectations.
- Reported a 19% increase in total revenue to $291.3 million.
- Net profit after tax rose by 31% to $63 million.
- Annual recurring revenue (ARR) grew by 21% to $511.1 million.
- Exceptional growth in the UK market with ARR increasing by 50% to $43.1 million.
- Strong financial results and upgraded full-year profit guidance boosted investor confidence.
- Wilson Asset Management continues to hold due to these positive developments.
Glennon Small Companies
31 May 2025
$41.10
Summary
- Technology One was the standout performer for the month.
- Strong rally following the release of its half-year results for the period ended March 2025.
- Reported robust revenue growth, driven by its Software-as-a-Service (SaaS) offering.
- SaaS has become the cornerstone of its recurring revenue model.
- Strong contract wins and increased customer retention.
- Operational leverage contributed to margin expansion and positive investor sentiment.
- Results reinforced confidence in Technology One's growth strategy.
- Maintains its leadership position in enterprise software across the public sector and higher education markets.
- Glennon Small Companies continues to hold Technology One due to its strong fundamentals and growth potential.
Ten Cap
31 May 2025
$41.10
Summary
- Technology One (TNE) reached new highs after beating both revenue and EPS estimates in its half-year results.
- Its resilient SaaS model and deep domestic exposure continue to drive robust recurring revenue.
- Ten Cap continues to hold because of the strong performance and growth potential.
- Investment thesis remains positive due to consistent revenue growth and market position.
Yarra Capital Management
31 May 2025
$41.10
Summary
- TechnologyOne (TNE) has recently shown strong revenue and earnings growth.
- Yarra Capital Management notes encouraging progress in the US and UK markets.
- Despite the positive business momentum, valuation metrics such as 52-times EV/EBITDA and 97-times P/E are deemed prohibitive.
- Yarra Capital Management continues to hold an underweight position due to these valuation concerns.
- Better relative opportunities are identified in the high growth technology space.
LHC Capital
31 Dec 2024
$31.31
Summary
- Technology One demonstrated exceptional performance in 2024, achieving a total shareholder return of 105%.
- Financial results exceeded market expectations, with Annual Recurring Revenue (ARR) growth of 20% and a net profit before tax increase of 18%.
- The company continues to invest significantly in research and development, viewed as a core competitive advantage.
- Growth in the UK market is notable, with UK ARR increasing by 31% and several key customer acquisitions.
- The transition to a cloud-based ERP system has been successful, driving a significant revenue uplift.
- Customers utilizing cloud-based deployments are likely to purchase more modules, enhancing profit margins.
- The introduction of SaaS Plus is disrupting traditional ERP pricing models, bundling software and implementation costs into a single payment.
- Technology One's strong outlook for 2025 anticipates surpassing A$500m in ARR and aims for A$1,000m by 2030.
- Changes to the Long-Term Incentive (LTI) structure reflect confidence in future growth, with increased EPS growth targets for management.
- LHC Capital continues to hold because of the strong growth potential and the strategic advantages Technology One is establishing in the market.
Selector Funds Management
31 Dec 2024
$31.31
Summary
- Selector Funds Management continues to hold TechnologyOne due to its position as a global provider of Software-as-a-Service (SaaS) Enterprise Resource Planning (ERP).
- TechnologyOne serves six verticals: Education, Government, Local Government, Health, Financial Services, and Asset & Project Intensive industries.
- The company reported a strong FY 2024 result with revenue up 18% to $507m and net profit after tax of $118m, a 15% increase year-on-year.
- Annual recurring revenue (ARR) grew 20% to $470m, driven by new client wins and increased product uptake.
- The U.K. market showed significant growth, with new sales ARR increasing 70% to $8.7m.
- TechnologyOne has achieved continuous innovation, rewriting its codebase four times since 1987.
- Customers have reported savings of over 30% on total cost of ownership by transitioning to TechnologyOne’s SaaS offering.
- Net Revenue Retention (NRR) was 117%, indicating strong existing customer relationships.
- Customer churn remains low at 1.3%, below the forecasted 1.8%.
- TechnologyOne's strategic approach includes landing customers with core products and expanding engagement over time.
- The SaaS+ model addresses implementation costs, offering a complete service for a single annual fee.
- TechnologyOne aims for a 30-day ERP implementation by 2028, significantly reducing current timelines.
- The acquisition of CourseLoop enhances its OneEducation solution, providing a complete end-to-end solution for the student lifecycle.
- Investment in R&D increased 14% to $125m, representing 25% of revenue.
- Management has upgraded its medium-term target to surpass $500m ARR by the first half of FY25.
- A new long-term target aims for over $1b ARR by FY30.
- TechnologyOne has a market capitalisation of $10.1b.
Selector Funds Management
30 Nov 2024
$30.91
Summary
- TechnologyOne delivered a strong FY24 result with revenue increasing 17% to $515m (90% recurring).
- Net profit after tax reached $118m, up 15%.
- The company brought forward its $500m+ Annual Recurring Revenue (ARR) target by six months to HY25.
- Plans to continue doubling ARR every five years with a new long-term target of $1b+ ARR by FY30.
- Product innovation remains a core enabler for long-term growth, with R&D investment at 20%-25% of revenue.
- Vision to reduce implementation time of its core ERP solution from 140 days to 30 days by 2028.
- TechnologyOne has a market capitalisation of $9.8b.
Selector Funds Management
30 June 2024
$18.17
Summary
- TechnologyOne is a global provider of Software-as-a-Service (SaaS) Enterprise Resource Planning (ERP).
- Founded in 1987, it serves six verticals: Education, Government, Local Government, Health, Financial Services, and Asset & Project Intensive industries.
- Employs over 1,100 staff across six countries, including Australia, New Zealand, the U.K., and Malaysia.
- Reported a strong result in the first half of financial year 2024 with 21% growth in annual recurring revenue (ARR).
- Successfully transitioned to a SaaS model, with only a few remaining license fee customers.
- Continuous innovation with four rewrites of its codebase, allowing biannual releases of new products.
- Customers have reported savings of over 30% on total cost of ownership with SaaS offerings.
- Latest update, 24a, will introduce 440 new features across 16 products.
- Net Revenue Retention (NRR) was 117%, indicating strong customer relationships.
- Customer churn increased to 1.8% due to ending on-premise offerings.
- Strategic approach to customer engagement, starting with core products and expanding over time.
- SaaS+ addresses implementation costs, bundling software and implementation into a single annual fee.
- Management describes SaaS+ as a “game changer” for faster rollouts and reduced risk.
- Guidance for full year 2024: ARR growth of 15% to 20% and net profit before tax growth of 12% to 16%.
- Management expects to surpass $500m in ARR by financial year 2025.
- Aim for a 30-day ERP implementation by 2028, down from the current average of 300 days.
- TechnologyOne has a market capitalisation of $6b.
Monash Investors
31 May 2024
$17.78
Summary
- Technology One (ASX: TNE) has shown a +9% increase following its half year results.
- TNE specializes in commercial software for accounting and administration, serving corporates, universities, councils, and government departments.
- The company is experiencing accelerating revenue growth as it transitions from legacy revenue based on license fees to a SaaS (Software as a Service) model.
- Technology One provided strong guidance for FY24, indicating robust future performance.
- The firm expects to double in size every 5 years, reinforcing confidence in its growth trajectory.
- Monash Investors continues to hold Technology One due to its promising outlook and strategic transition.
Elston Asset Management
30 Sept 2023
$15.44
Summary
- Elston sold their investment in TechnologyOne due to its addition to the S&P/ASX 100 index.
- The decision was made as part of S&P’s March 2023 index rebalancing.
- Elston aims to remain true to their label as small cap managers.
- There is a mandated 12-month period to remove a holding after its inclusion in the S&P/ASX 100 index.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in TechnologyOne Ltd (ASX:TNE)?
Fund managers including Monash Investors, Yarra Capital Management, Elston Asset Management, LHC Capital, Ten Cap, Wilson Asset Management, Montgomery Investment Management, Lakehouse Capital, Selector Funds Management, Alliance Bernstein, Glennon Small Companies, Alphinity Investment Management, Vinva Investment Management, Pendal Group, Hyperion Asset Management and Spheria Asset Management have invested in TechnologyOne Ltd (ASX:TNE).
Why do fund managers invest in TechnologyOne Ltd?
Fund managers invest in TechnologyOne Ltd due to its strong financial performance, demonstrated by significant revenue and annual recurring revenue (ARR) growth. The company is a leader in the Software-as-a-Service (SaaS) sector, particularly in government and education markets. Its innovative SaaS Plus platform has improved customer retention and accelerated growth in the UK market. With a solid dividend policy and a proven track record in capital allocation, TechnologyOne offers a compelling risk/reward profile, making it an attractive investment option.
What happened to TechnologyOne Ltd (ASX:TNE)?
Fund managers are investing in TechnologyOne Ltd due to its solid growth prospects in the UK market, where it is poised to capture market share from established competitors like Oracle and Workday. The company's recent FY25 results showed an impressive 18% growth in annual recurring revenue (ARR) and a 19% increase in profit before tax, indicating a resilient business model and consistent earnings growth. With a strong recurring revenue base, successful new product launches like its AI-enabled software, and a strategy focused on local government and higher education sectors, TechnologyOne demonstrates both stability and growth potential, despite short-term market fluctuations.
What is the short interest in TechnologyOne Ltd (ASX:TNE)?
The short interest in TechnologyOne Ltd (ASX:TNE) is 1.03% which makes it the 207th most shorted stock on the ASX. Of the 327.4M shares that TechnologyOne Ltd has on issue, 3.4M have been sold short.
What does TechnologyOne Ltd (ASX:TNE) do?
Technology One Ltd. engages in the development, marketing, sales, implementation, and support of fully integrated enterprise business software solutions. It operates through the Software and Consulting segments. The Software segment consists of sales and marketing, research and development, and software as a service (SaaS) platform. The Consulting segment includes the services related to the services. The company was founded by Adrian Di Marco in 1987 and is headquartered in Brisbane, Australia.