Hatchings
NOVemBER 2025 – ISSUE 26
November Reporting Season Wrap
Quality Growth Names on Sale
The abridged November reporting season has delivered a mix of resilience and volatility across Australian growth stocks. Despite strong operational performance from leading names, the sector has faced a sentiment-driven sell-off. This article explores the macro backdrop, company-specific results, and why current valuations present compelling opportunities for investors.
Macro Backup
Investor sentiment has been pressured by AI driven global tech volatility, valuation concerns, and cautious positioning ahead of potential interest rate moves from both the Federal reserve and RBA. While fundamentals remain intact, the market has repriced growth names aggressively, creating a disconnect between strong operational delivery and share price performance.
Portfolio Deep Dive
Aristocrat Leisure (ALL)
- FY25 revenue: A$6.3bn (+11% YoY), NPAT: A$1.64bn, EBITDA margins ~40%
- Strong North American gaming and Interactive growth
- Shares fell ~6% post-result despite beating expectations
Source: Platypus, FactSet
Xero Ltd (XRO)
- FY25 revenue: NZ$2.1bn (+23%), NPAT: NZ$227.8m (+30%)
- ARPU growth of 11%, free cash flow margin improved to 24%
- Shares down ~16% post-result, reflecting tech risk aversion
Source: Platypus, FactSet
TechnologyOne Ltd (TNE)
- FY25 revenue: A$286m (+4.4% vs consensus), EPS 11% ahead
- SaaS+ momentum and UK traction underpin growth
- Shares sold off 19% on the release date despite record profits
Source: Platypus, FactSet
Life360 (360)
- Q3 revenue: US$124.5m (+34% YoY), Adjusted EBITDA up 174%
- Paying Circles grew 23% to 2.7m, Monthly Active Users (MAU) up 19% YoY
- Shares pulled back ~16% despite raised guidance
Source: Platypus, FactSet
The Investment Opportunity
These 4 companies represent quality growth names with strong balance sheets, recurring revenue models, and proven track records of execution. Based on the November reporting season the recent sell-off is valuation-driven rather than fundamentals driven, creating an attractive entry point for long-term investors such as Platypus. Current multiples are below historical averages, offering upside potential as sentiment normalises.
Conclusion
The November reporting season underscores the resilience of the leading growth companies within the Platypus portfolio. With results largely in line or ahead of expectations, and valuations at multi-year lows, this is a prime opportunity for investors to add exposure to quality growth names.
Disclaimer:
Issued by Platypus Asset Management Pty Ltd ABN 33 118 016 087, AFSL 301294 (PAM). This material contains general information only and does not take into account your individual objectives, financial situation, needs or circumstances. Prior to investing in any financial product, an investor should determine, based on its own independent review and such professional advice as it deems appropriate, the nature and extent of economic risks and merits, the legal, tax accounting characteristics and risk, and the consequences of an investment in the financial product. This material is not a financial product recommendation or an offer or solicitation with respect to the purchase or sale of any financial product. While every care has been taken in the preparation of this material, no warranty of accuracy or reliability is given and no responsibility for the information is accepted by PAM, its officers, employees or agents. This material may contain estimations about future matters (including forecast financial information) which are based upon selected information known and assumptions made as of the date of this document. Such estimations are subject to risks and uncertainties and actual results may be materially different. Nothing contained in this material may be relied upon as a promise, representation, warranty or guarantee by PAM (or any other person, including any director, officer or any related body corporate of PAM) in respect of such estimations. PAM is part of the Australian Unity Group of companies. This information is intended for recipients in Australia only. Not to be reproduced without permission.