8Common Ltd (8CO) AI Stock Analysis

• Market Cap: AU$4.48M
• Dividend Yield: N/A
• Average Volume (3M): 138.16K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.39
• Revenue Growth: -10.32%
• EPS Growth: 69.30%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• 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: 44 Neutral
• Price Target: AU$0.02 ▼(-36.67% Downside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is primarily constrained by higher financial risk (negative equity) and continued net losses despite improving margins and a return to positive cash flow. Technicals add pressure with a weak broader trend and negative MACD, while valuation provides limited support due to the negative P/E and no dividend data.

Positive Factors

Margin recovery

A sustained gross margin near 66% is a structural strength for a software-app business: it signals strong unit economics, product pricing or lower delivery costs. If maintained, these margins provide durable operating leverage to convert revenue gains into profit as scale returns.

Positive operating & free cash flow

Return to positive operating and free cash flow represents a meaningful shift in cash generation and working-capital discipline. Even modest, recurring cash inflows reduce financing dependence and, if sustained, enable reinvestment or gradual balance-sheet repair over several quarters.

Historically low debt

Modest absolute debt levels limit interest burden and leave capacity to manage operations while rebuilding equity. For a small software firm, low external leverage reduces refinancing risk and preserves strategic optionality during a multi-quarter recovery if cash flow remains positive.

Negative Factors

Negative shareholders' equity

Negative equity is a structural overhang that weakens financial flexibility and can constrain capital raising or trigger covenant and supplier concerns. Restoring positive retained capital requires sustained profitability or external capital, both of which take multiple quarters and raise execution risk.

Ongoing net losses

Despite margin improvement, persistent net losses mean the company still consumes equity and limits retained-earnings rebuild. Continued unprofitability restricts strategic investments and increases reliance on external funding until consistent operating profit is achieved.

Revenue volatility and decline

Falling and inconsistent revenue undermines the sustainability of improved margins and cash flow; it raises questions about market traction or retention. Durable recovery requires stable top-line growth to convert high gross margins into lasting net profitability and equity repair.

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

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8Common Ltd Financial Statement Overview

Summary

Operational recovery is evident with materially improved gross margin (~66% in 2025) and sharply narrowed losses, plus a return to positive operating and free cash flow. Offsetting this, revenue declined (-3.5% in 2025), earnings remain negative, and shareholders’ equity turned negative in 2025—raising financial risk and limiting flexibility.

Income Statement

Revenue has been volatile and most recently declined (-3.5% in 2025), but profitability has improved meaningfully versus prior years. Gross margin rebounded to a strong ~66% in 2025 (from ~43% in 2024 and negative in 2022–2023), and losses narrowed sharply (net margin improved to about -11% in 2025 from about -31% in 2024). The key weakness remains that earnings are still negative, with operating profit and net income still below breakeven despite the margin recovery.

Balance Sheet

The balance sheet weakened materially in 2025 as shareholders’ equity turned negative, which reduces financial flexibility and increases risk. Debt is modest in absolute terms (about 0.45m in 2025), but the negative equity base makes leverage look structurally unfavorable. Positively, the company historically operated with little to no debt (2020–2024), yet the current negative equity position is a clear overhang until profitability and retained capital rebuild.

Cash Flow

Cash generation improved substantially in 2025, with operating cash flow turning positive (~0.14m) and free cash flow also positive after several years of outflows (notably negative in 2024, 2023, and 2022). This is a constructive sign of improving cash discipline and working-capital dynamics. The main drawback is that cash-flow momentum has been inconsistent over time, and the 2025 cash inflow is relatively small versus the still-negative earnings base.

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

8Common Ltd Technical Analysis

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

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 above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, 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%
AER	48 Neutral	AU$6.10M	56.21	-34.60%	―	29.51%	-3.61%
8CO	44 Neutral	AU$4.48M	-12.03	64.42%	―	-10.32%	69.30%
SMX	43 Neutral	AU$8.00M	-0.94	-115.41%	―	―	28.93%
SIS	43 Neutral	AU$7.60M	-4.57	227.23%	―	-26.58%	―
ID8	43 Neutral	AU$6.22M	-0.55	-525.49%	―	3.91%	46.67%
1TT	37 Underperform	AU$1.43M	-0.06	-562.56%	―	―	―

8Common Ltd Corporate Events

8common Narrows Half-Year Loss Despite Revenue Decline

8common Ltd reported a 14% decline in revenue and other income to $3.23 million for the half-year to 31 December 2025, compared with the prior corresponding period. However, EBITDA improved from a loss of $318,420 to a positive $248,215, and the net loss after tax narrowed significantly from $698,975 to $171,404, reflecting better cost control or operational efficiencies.

Net tangible asset backing per share improved slightly but remained negative at minus 0.64 cents, compared with minus 0.93 cents a year earlier, underscoring that the balance sheet is still asset-light or carries intangible-heavy items. The board declared no dividend for the period, signalling a continued focus on conserving capital as the group works toward sustained profitability and balance sheet strengthening.

The most recent analyst rating on (AU:8CO) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on 8Common Ltd stock, see the AU:8CO Stock Forecast page.

8common Delivers Third Straight Quarter of Positive Cash Flow as Government Contracts Bolster Recurring Revenue

8common Limited reported a solid start to FY26, maintaining positive operating cash flow and achieving an unaudited first-half EBITDA of $242,000, underpinned by $1.28 million in quarterly SaaS and transaction revenue, up 4% on the prior corresponding period, and a 70% gross margin. While total quarterly revenue fell 13% to $1.56 million, the company reduced total costs by 20% year-on-year, helped by a 36% cut in administrative and corporate expenses, and kept its cash position steady at $100,000, supported by a $1.5 million loan facility with approximately $300,000 still drawn after a $91,000 repayment. Annualised recurring revenue is running at about $5.1 million, with stable ARPU of $27.75 across 185,000 users, and management highlighted that infrastructure upgrades and AI-powered tools have delivered a third consecutive quarter of positive cash flow and EBITDA. Operationally, 8common signed a $118,000 customer-funded enhancement contract for its CardHero product and secured a significant two-year renewal of its Expense8 contract with the NSW Department of Education, valued at an estimated $1.56 million plus options that could take the total to $3.54 million, reinforcing the company’s position in government-facing fintech solutions and supporting revenue visibility going into the second half.

The most recent analyst rating on (AU:8CO) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on 8Common Ltd stock, see the AU:8CO Stock Forecast page.

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

8common Limited has disclosed a change in director Kah Wui Lim’s interests in the company’s securities, reflecting additional on‑market share purchases. The filing shows Lim increased his indirect holding by acquiring a total of 1.58 million fully paid ordinary shares over two days at prices of $0.034–$0.035 per share, bringing his indirect stake to 6.88 million shares while his substantial direct holding and existing options remain unchanged, signalling continued director support for the company’s equity.

The most recent analyst rating on (AU:8CO) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on 8Common Ltd stock, see the AU:8CO Stock Forecast page.

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.