8Common Ltd (8CO) AI Stock Analysis

• Market Cap: AU$6.95M
• Dividend Yield: N/A
• Average Volume (3M): 138.16K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.49
• Revenue Growth: -10.32%
• EPS Growth: 69.30%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 224,094,910
• 10 Day Avg. Volume: 114,501
• 30 Day Avg. Volume: 138,164
• PEG Ratio: 0.07
• Price to Book (P/B): -9.44
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 27.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: AU$0.04 ▲(16.67% Upside)

The score is primarily constrained by higher financial risk—negative equity and ongoing net losses despite improving margins and a return to positive operating/free cash flow. Technicals are supportive with strong momentum, but overbought signals raise pullback risk. Valuation remains difficult to assess given the negative P/E and no dividend data.

Positive Factors

Margin Improvement

The significant improvement in gross margin indicates better cost management and operational efficiency, which could enhance profitability over time.

Positive Cash Flow

Positive cash flow suggests improved cash management and operational health, providing the company with more resources for reinvestment and debt reduction.

Market Expansion

Expanding partnerships and renewing significant contracts enhance market presence and client engagement, supporting long-term growth prospects.

Negative Factors

Negative Equity

Negative equity reduces financial flexibility and increases risk, potentially limiting the company's ability to raise capital or absorb losses.

Revenue Decline

A decline in revenue indicates challenges in maintaining sales growth, which could pressure margins and profitability if not addressed.

Inconsistent Cash Flow

Inconsistent cash flow generation can hinder strategic planning and investment, affecting the company's ability to sustain operations and growth initiatives.

8Common Ltd Business Overview & Revenue Model

Company Description

8common Limited develops and distributes software solutions in Australia, Asia, North America, and internationally. It offers Expense8, a travel and expense management software solution that manages and streamlines the end-to-end processing of employee-generated expenses; Perform8, a survey and action planning solution that diagnoses and prioritizes areas for enhancement across the business; and CardHero, an integrated fund disbursement and spend management solution. The company serves publicly listed companies, global corporations, and local and national governments. 8common Limited was incorporated in 2014 and is headquartered in Sydney, Australia.

How the Company Makes Money

8Common Ltd generates revenue primarily through software-as-a-service (SaaS) subscription fees for its platforms, particularly Expense8. The company also earns money from implementation and integration services, which help clients customize and deploy its solutions. Additionally, 8Common benefits from ongoing customer support and maintenance contracts. Significant partnerships with government agencies and large enterprises contribute to its earnings, as these clients often require scalable and robust solutions for managing expenses and productivity across their organizations.

8Common Ltd Financial Statement Overview

Summary

8Common Ltd faces significant financial challenges, marked by persistent losses and negative cash flows. While the increase in revenue and absence of debt are positives, the company's profitability and cash flow constraints raise concerns about its financial health and stability. Continued focus on improving operational efficiencies and generating positive cash flow will be critical for future success.

Income Statement

8Common Ltd's income statement reveals some challenges, with a consistent history of net losses over the last several years. Despite an increase in total revenue from the previous year, the company still faced a negative net profit margin, indicating operational inefficiencies or high expenses relative to revenue. The gross profit margin improved significantly, suggesting better cost management or pricing strategies. However, negative EBIT and EBITDA margins highlight ongoing profitability issues.

Balance Sheet

The balance sheet shows a company with no debt, which is a positive sign in terms of leverage risk. However, the steep decline in stockholders' equity from the previous year suggests financial strain, possibly due to sustained losses. The equity ratio has decreased, which could indicate increased reliance on liabilities or reduced asset base. Overall, while the absence of debt is commendable, the shrinking equity base presents concerns regarding financial stability.

Cash Flow

Cash flow analysis indicates ongoing cash flow challenges, with negative operating and free cash flows. The free cash flow position has worsened compared to the previous year, and the operating cash flow to net income ratio is negative, suggesting the company is not generating enough cash from operations to cover its net losses. This trend raises concerns about liquidity and the company's ability to fund operations without external financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.29M	7.29M	8.12M	7.24M	4.57M	3.51M
Gross Profit	4.55M	4.85M	3.46M	-820.89K	-898.89K	-63.37K
EBITDA	-707.36K	-18.89K	-1.92M	-2.60M	-1.73M	-1.09M
Net Income	-793.95K	-793.95K	-2.55M	-3.30M	-2.50M	-1.34M
Balance Sheet
Total Assets	2.24M	2.24M	3.15M	5.74M	8.73M	6.97M
Cash, Cash Equivalents and Short-Term Investments	102.40K	102.40K	131.74K	1.81M	3.25M	3.22M
Total Debt	448.38K	448.38K	0.00	0.00	0.00	0.00
Total Liabilities	2.65M	2.65M	2.73M	2.69M	1.84M	1.84M
Stockholders Equity	-403.68K	-403.68K	417.31K	3.05M	6.89M	5.12M
Cash Flow
Free Cash Flow	140.66K	140.66K	-1.79M	-1.52M	-3.56M	-776.94K
Operating Cash Flow	140.66K	140.66K	-1.68M	-265.03K	-1.66M	-154.34K
Investing Cash Flow	0.00	0.00	6.54K	-1.18M	-1.90M	-622.59K
Financing Cash Flow	-170.00K	-170.00K	0.00	0.00	3.59M	2.16M

8Common Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:8CO, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.84 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:8CO.

8Common Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8CO	50 Neutral	AU$6.95M	-8.86	-9999.00%	―	-10.32%	69.30%
SMX	47 Neutral	AU$7.20M	-1.34	-122.65%	―	―	28.93%
AER	44 Neutral	AU$5.78M	-8.60	-47.62%	―	29.51%	-3.61%
ID8	43 Neutral	AU$5.41M	-2.08	-217.63%	―	3.91%	46.67%
1TT	37 Underperform	AU$914.19K	-0.17	―	―	―	―
SIS	37 Underperform	AU$8.87M	―	―	―	-26.58%	―

8Common Ltd Corporate Events

8common Director Kah Wui Lim Increases Indirect Shareholding via On‑Market Purchases

8common Limited has disclosed that director Kah Wui Lim has increased his relevant interest in the company through a series of on‑market share purchases executed between 17 and 24 December 2025. Lim acquired a total of 1,535,667 fully paid ordinary shares for approximately $46,924, held indirectly via a Manulife insurance policy account, lifting his indirect holding from 3,759,266 to 5,294,933 shares, while his substantial direct shareholding and options position remain unchanged. The transactions, undertaken outside a closed trading period, underscore continued insider confidence in 8common’s prospects and marginally increase director alignment with shareholder interests without altering the company’s broader capital structure.

8common Limited Announces Successful AGM Resolutions

At the 2025 Annual General Meeting, 8common Limited announced that all resolutions were passed by a poll, including the adoption of the remuneration report, the re-election of Mr. Kok Fui Lau as Director, and the confirmation of a new auditor. This outcome reflects strong shareholder support and potentially reinforces the company’s strategic direction and governance, which could positively impact its operations and stakeholder confidence.

8common Limited Releases FY25 Investor Presentation

8common Limited has released an investor presentation for the fiscal year 2025, highlighting that the document is intended for informational purposes only and does not constitute an offer of securities. The presentation includes disclaimers about forward-looking statements and emphasizes that it should not be relied upon for investment decisions, underscoring the company’s commitment to transparency and regulatory compliance.

8common Limited Reports Positive Cashflow and Expands Market Presence in Q1 FY26

8common Limited reported a positive start to FY26 with an 8% increase in transaction and SaaS revenue, achieving a gross margin of 70% for the quarter. The company maintained its cash position and reduced operational costs by 38%, while expanding its partner network and renewing a significant contract with the NSW Department of Education. These developments indicate a stable financial position and potential growth in client engagement and market presence.

8common Limited Reissues AGM Notice Due to Typographical Error

8common Limited has reissued its Notice of Meeting and related documents for the 2025 Annual General Meeting due to a typographical error found after the initial lodgement. The corrected documents, including a letter to shareholders, the notice, and a proxy form, are being dispatched to shareholders. This announcement reflects the company’s commitment to maintaining transparency and accuracy in its communications, which is crucial for maintaining trust with its stakeholders.

8common Limited Announces 2025 Annual General Meeting Details

8common Limited has announced the dispatch of documents related to its 2025 Annual General Meeting, including a letter to shareholders, a notice of the meeting, and a proxy form. The meeting is scheduled for November 21, 2025, in Sydney, and shareholders can access the meeting materials online. This announcement is part of 8common’s ongoing efforts to engage with its shareholders and provide transparency in its operations, reflecting its commitment to maintaining strong corporate governance practices.