Uncover the top ASX tech stocks for FY26, featuring impressive performances from Technology One, Life360, Codan, Xero, and Computershare. Delve into their remarkable revenue growth, robust recurring income, strategic acquisitions, and momentum fueled by innovation.
Best ASX tech stocks
Technology One Limited (ASX: TNE)
record-breaking result in the first half of FY25. Total annual recurring revenue (ARR) surpassed $500 million which is 18 months ahead accomplishment of their original target. The company reported a 19% increase in total revenue to $291.3 million and a 31% jump in net profit after tax to $63 million driven by the continued momentum of its SaaS+ platform and strong growth in key sectors like education and local government. Their disciplined R&D investment reached $68.8 million supporting ongoing innovation across their suite of enterprise solutions
Technology One’s net revenue retention rate stood at an impressive 118% with extremely low customer churn of just 0.3% reflecting high customer satisfaction and a sticky client base. The robust cash and investments position, up 23% to $211.9 million, enabled the company to raise its interim dividend by 30% to 6.6 cents per share maintaining a steady payout history. The strategic acquisition of CourseLoop enhanced their higher education offerings and reinforcing Technology One’s leadership in mission critical SaaS ERP solutions for APAC and UK markets.
Life360, Inc. (ASX:360)
concluded Q1 2025 with remarkable operational momentum by growing its global monthly active user base to approximately 83.7 million. An impressive 26% jump year over year. Paying Circles reached 2.4 million (also up 26%) reflecting robust user engagement across the U.S. and international markets. The company’s total revenue surged by 32% year over year to $103.6 million with recurring subscription revenue climbing 33% to $81.9 million. Operating discipline led to positive net income of $4.4 million while Adjusted EBITDA more than tripled to $15.9 million marking the tenth consecutive quarter of positive Adjusted EBITDA and reinforcing Life360’s expanding profitability
Annualized Monthly Revenue grew 38% to $393 million benefiting from both an expanding subscriber base and higher average revenue per paying circle. The company ended the quarter with $170.4 million in cash and equivalents ensuring strong liquidity. Strategic gains were also evident in international markets and through new partnership and advertising initiatives supporting continued growth. Life360’s focus on innovation in family connectivity, recurring revenue and disciplined cost management positions it as a leading family safety technology platform
delivered robust growth in the first half of FY25 with group revenue rising 15% to $305.6 million and net profit after tax climbing 21% to $46.1 million. The communications segment emerged as the main growth driver, reporting revenue of $187 million (22% increase) while segment profit soared 31% to $49.8 million and the order book expanded to a record $247 million (up 35%). Metal detection revenue also improved by 5% with strong contributions from the African market boosting both volume and segment profit margin. The company maintained financial discipline, increasing its interim dividend by 19% to 12.5 cents per share, fully franked.
Codan strengthened its balance sheet by supporting acquisitions, most notably the addition of Kägwerks which enhanced its tactical communications capabilities and U.S. military market presence. Operating cash flows remained healthy despite a net debt increase due to acquisition and working capital funding for its expanding communications business. Engineering and R&D investment equalled 10% of revenue signalling continued innovation across its product suite. Codan’s long-term strategy remains focused on driving organic growth, improving recurring revenue streams and seeking further value accretive acquisitions
delivered an outstanding performance in FY25 reporting a 23% surge in operating revenue to NZ$2.1 billion and a 30% rise in net profit after tax to NZ$227.8 million. The company’s annualised monthly recurring revenue grew 22% to NZ$2.39 billion while adjusted EBITDA expanded by 22% to NZ$640.6 million. Xero maintained best in class gross margins at 89% and improved its free cash flow margin to 24.1% with free cash flow up 48% to NZ$506.7 million. This robust financial delivery underpinned a Rule of 40 score of 44.3% reflecting balanced growth and strong operating discipline
The subscriber base grew by 6% to 4.41 million with underlying net additions reaching 414,000 driven by healthy demand in all major markets. Average revenue per user rose 15% to NZ$45.08 which is supported by product enhancements, price adjustments and particularly strong payments revenue growth of 65% year on year. Churn remained historically low at 1.03% demonstrating Xero’s resilience and commitment to customer value.
Computershare Limited (ASX: CPU)
Computershare Limited has delivered a strong first half of FY25 reporting statutory net profit after tax of $287.8 million which is up 173.5% compared to the prior period. The company also reported management earnings per share of 65.3 US cents reflecting an 18.7% increase. Revenue from continuing operations reached $1,498.8 million growing by 6.4% when excluding the divested US Mortgage Services business, with standout performances in recurring client fee and event driven transactional revenues. Particularly robust results came from the Issuer Services, Corporate Trust and Employee Share Plans segments, each posting both revenue growth and margin expansion. The business continued its disciplined cost management, achieving 4.6% lower operating expenses against pro forma comparables and maintained a strong operating cash flow of $354.2 million
The balance sheet remained solid, with net debt to EBITDA at just 0.39 times providing flexibility for innovation, acquisitions and shareholder returns. Reflecting this confidence, the board increased the interim dividend to AU 45 cents per share, a 12.5% rise. in addition to that, ongoing share buybacks and investments in technology fortify Computershare’s capital light, high margin model delivering average historical returns on equity of around 23%. Strategic acquisitions such as ingage IR and CMi2i in the UK further strengthened Computershare’s global leadership in issuer and corporate trust services. Looking ahead, upgraded FY25 guidance anticipates full-year management EPS growth of approximately 15%, underpinned by strong recurring revenue streams, prudent risk management and a resilient business model positioned to capture further growth across major markets.
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