As the Australian market continues to evolve, investors are increasingly turning their attention to the tech sector. With its natural growth potential and historical outperformance, tech stocks have become an attractive investment option. In this article, we will explore the top three Australian high growth tech stocks to watch in 2025, based on the latest insights from industry experts.

1. Life360 Inc (ASX: 360)

Life360 Inc is a location technology company that has seen significant growth in recent years. With over 75 million users worldwide and a paying subscriber base of around 7 million, the company has a massive user base with room for growth. The penetration rate of paying subscribers is currently around 10%, with a long-term target of 30%. This suggests that the paying subscriber base could potentially triple from the current level.

Life360 is also expanding its verticals, adding new areas such as advertising, pet, and elderly tracking. These new verticals provide additional growth opportunities for the company. In addition, Life360 is expected to release its Q4/2024 result in February, which could be a strong result towards the upper end of the guidance ranges. There is also a good chance that Life360 will be added to the S&P/ASX index rebalance in March, further boosting its visibility and potential.



2. Light & Wonder Inc. (ASX: LNW)

Light & Wonder Inc. is a leading cross-platform games company that develops and manufactures slot machines, creates free-to-play social casino games for mobile platforms, and produces online real-money gaming content for online casinos. The company anticipates annual EBITDA growth rates of 8-11% over CY24-26, driven by further R&D investment that enhances game performance and results in market share gains across various markets.

Recent weakness in the stock price has created an opportunity for investors to buy into a high-quality company at a potentially attractive entry point. Bell Potter, a leading Australian broker, has a buy rating and a price target of $180.00 on its shares.



3. Gentrack Group Ltd (ASX: GTK)

Gentrack Group Ltd is a software company that provides billing, CRM, and utilities software. The company is well-positioned to deliver strong earnings growth in the coming years, driven by its strategic focus on the utilities sector. Gentrack has a track record of upgrading and beating guidance, with the interim result in May likely to be the next catalyst potentially from lumpy, large contract wins in Southeast Asia.

While Gentrack appears expensive at ~90x/~56x FY25e/26e P/E, the valuation reflects high earnings leverage emerging, with PEG ratios of ~1.2x and ~0.9x respectively. This indicates that the company's growth prospects are relatively attractive compared to its valuation.



In conclusion, the Australian tech sector is home to some of the most exciting investment opportunities in the world. With its natural growth potential and strong performance, tech stocks have become an attractive option for investors seeking to leverage the future of technology. The three companies highlighted in this article—Life360 Inc (ASX: 360), Light & Wonder Inc. (ASX: LNW), and Gentrack Group Ltd (ASX: GTK)—are well-positioned to deliver strong growth and outperform the broader market in 2025. Investors should consider adding these high-growth tech stocks to their portfolios and monitor their progress throughout the year.