Hansen Technologies logs $386.5M full-year operating revenue

• Full-year operating revenue fell 1.5% to $386.5 million due to lower upfront licence fees.
• Shares dropped nearly 20% to $3.41, despite the company achieving a 31% underlying EBITDA margin.
• The business is transitioning towards consumption-based pricing and increasing investments in artificial intelligence capabilities.

Hansen Technologies (ASX:HSN) reported a 1.5% revenue decline to $386.5 million as upfront licence fees dropped.

Underlying net profit after tax rose 22.5% to $48.5 million from $39.6 million last year.

The software provider still achieved an underlying EBITDA margin of 31%, exceeding its previous 30% target.

"In a more cautious environment, we have remained focused on disciplined execution, protecting earnings quality while continuing to invest for long-term growth," said Hansen Global CEO Andrew Hansen.

Support and maintenance revenue grew 13.4% to $230.3 million, offsetting the decline in new software licences.

Following the announcement, the Hansen share price was down at $3.45.

FY27 revenue is expected to be broadly stable relative to FY26, reflecting the ongoing transition from upfront licence revenue to recurring consumption-based revenue streams and continued foreign exchange headwinds.

Hansen has focused on building the foundations required to embed AI across its products, operations and customer solutions.

The firm focuses on generating predictable cash flow from long-term contracts across global energy and telecommunications markets.