Are Mach7 and TechnologyOne on ASX becoming unstoppable?
Mach7 and TechnologyOne stand out as high-quality ASX companies which have entered 2026 with strong momentum supported by their lucrative business models, disciplined execution and clear long-term growth runways.
Mach7 Technologies Limited (ASX: M7T)
began 2026 on a great note as the share price rose by just over 9.7% on 2 January and the company announced on 3 December 2025 that it had signed a new five-year subscription licence agreement with UnityPoint Health for its Flamingo Architecture product.
The agreement is expected to generate around $0.6 million in annual recurring revenue in the first year with ARR expected to increase to $1 million over time as usage volumes expand.
Mach7 reported FY25 revenue of $33.8 million which represented 16% year-on-year growth while recurring revenue increased by 20% to $25.3 million and now makes up 75% of total revenue.
The company also showed strong cost discipline as it finished the year with $23.1 million in cash and operates with no debt on the balance sheet.
During FY25, Mach7 initiated an on-market share buyback and repurchased 6.3 million shares for $2.2 million which highlights management's confidence in the business.
TechnologyOne Limited (ASX: TNE)
is one of Australia’s high- quality software businesses with consistent growth and global relevance.
The profit before tax rose 19% to $181.5 million in FY25 while total annual recurring revenue increased 18% to $554.6 million.
TechnologyOne delivered record revenue of $610 million along with record free cash flow of $184.2 million which highlights the strength of its operating model.
The balance sheet is strong with no debt and cash and investments of $319.6 million which supports investment in growth while also enabling a 63% increase in total dividends to 36.6 cents per share.
The company surpassed $500 million in ARR well ahead of expectations and set a new long-term target to exceed $1 billion in ARR by FY30 which reflects management confidence in the long-term growth runway.
The UK ARR grew 49 percent year-on-year and is expected to improve further which supports continued profit growth and attractive shareholder returns.
(Source: Company Reports)
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