Energy One (ASX: EOL) Share Price Falls 10% On Slightly Disappointing ARR Growth
The Energy One share price is down 10% because its ARR is only going to grow 13% in FY 2026. But the good news is hidden in the detail.
Energy One (ASX: EOL) is a software and services provider serving wholesale energy market participants in Australia, UK and Europe. Energy One software allows users to dispatch and trade electricity and gas, while the Energy One services division provides energy trading and risk management services to energy market participants. While the vast majority of Energy One revenue is recurring, or quasi-recurring in nature, the margins differ between different product lines. Software revenues enjoy the highest margins, followed by service revenues, then lastly one-off implementation projects.
The Energy One share price is down 10% because its ARR is only going to grow 13% in FY 2026. But the good news is hidden in the detail.
Energy One produced record revenue, record profit and record free cash flow in H1 FY 2026. But the Energy One share price is 30% below highs.
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