Objective (ASX:OCL) said the Australian Department of Defense's Defense Digital Group (DDG) decided not to renew a technology agreement with the company, ending the DDG's access to the Objective ECM Upgrade and Support Program's capabilities from Wednesday, according to a same-day filing with the Australian bourse.

However, the DDG confirmed that it remains committed to the widescale use of Objective ECM across the Department of Defense, and the non-renewal does not prevent Objective from making other sales to the department, the company said.

The development does not impact Objective's fiscal 2026 revenue or earnings but will reduce the company's annual recurring revenue balance. A renewal of the agreement on the expected terms would have resulted in annual recurring revenue growth for fiscal 2026 within the guided range of 10% to 14% on a constant currency basis, the company said.

The agreement had been in place for more than 25 years, per the filing.