Butn Limited (BTN) AI Stock Analysis

• Market Cap: AU$19.13M
• Dividend Yield: N/A
• Average Volume (3M): 74.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 8.28%
• EPS Growth: 84.45%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): >-0.01
• Shares Outstanding: 382,577,580
• 10 Day Avg. Volume: 52,483
• 30 Day Avg. Volume: 74,580
• PEG Ratio: 0.14
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 96.68
• P/FCF Ratio: 33.41
• 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: 41 Neutral
• Price Target: AU$0.05 ▼(-37.50% Downside)
• Action: Upgraded Date: 02/13/26
• Date: Action: Upgraded 02/13/26

The score is held down primarily by weak financial performance (severe revenue decline, ongoing losses, very high leverage, and weak cash flow metrics). Technicals are also negative with price below key moving averages, partially offset by oversold readings. Valuation is difficult to support due to the negative P/E and lack of dividend yield data.

Positive Factors

EBITDA margin improvement

An improved EBITDA margin (17.41%) indicates the core invoice financing operations can generate healthier operating profitability when volumes and pricing are managed. Sustained mid-teens EBITDA supports reinvestment, coverage of fixed costs and a path to positive net profitability over multiple quarters.

B2B working-capital business model

Butn’s focus on invoice and trade finance to SMEs is a structural business: recurring fee and financing income tied to receivables creates repeatable revenue streams. The model benefits from persistent SME cash-flow needs and opportunities for cross-sell and scaling the platform over time.

Moderate free cash flow conversion

A 0.55 free cash flow to net income ratio shows the company converts a material portion of accounting losses/earnings into cash, indicating some ability to generate distributable cash. Over months, this conversion can support debt servicing and reduce reliance on external funding if stabilized.

Negative Factors

Very high leverage

A debt-to-equity ratio near 7.5 creates structural financial fragility: high interest and principal obligations limit flexibility to fund receivables, make investments, or absorb credit losses. In a working-capital lending model, excessive leverage raises refinancing and solvency risk over quarters.

Severe revenue decline and persistent losses

A near-100% revenue drop alongside ongoing negative net margins undermines the company’s scale economics and raises questions about customer volume or pricing. Restoring durable top-line momentum is essential; prolonged decline can permanently damage client relationships and future profitability.

Very weak operating cash flow quality

An OC-to-net income ratio of 0.018 means earnings barely convert to cash, forcing dependence on external financing to fund advances. For an invoice-financing lender, poor cash conversion is a structural constraint that raises liquidity risk and increases funding costs across multiple quarters.

Butn Limited Business Overview & Revenue Model

Company Description

Butn Limited provides transactional funding to small and medium enterprises in Australia. The company's products include Butn Pay, a solution that allows organizations to pay for goods and services, and choose the repayment terms; Butn Now, a solution for businesses to claim their commissions instantly; Butn X, a solution that helps customers to get paid as soon as the goods and services are delivered with advanced payments; Butn Terms, a solution that enables organizations to outsource their accounts receivable; and Butn Plus, a solution that enables businesses to avail secured business loans. It offers factoring, supply chain finance, and commission advancement services. The company was founded in 2015 and is headquartered in Caulfield North, Australia.

How the Company Makes Money

Butn Limited generates revenue primarily through fees and interest associated with its financing products. The company charges a percentage of the invoice amount as a fee for its invoice financing services, which provides immediate liquidity to SMEs by allowing them to access cash tied up in unpaid invoices. Additionally, Butn earns interest on the funds it provides to clients, further contributing to its revenue. Key revenue streams include transaction fees, service fees for providing financial services, and interest income from financing agreements. Butn also benefits from partnerships with businesses and financial institutions that facilitate access to a broader customer base, enhancing its market reach and revenue potential.

Butn Limited Financial Statement Overview

Summary

Financial health is weak: revenue growth fell sharply to -95.54%, profitability remains challenged with negative net margins, leverage is very high (debt-to-equity 7.49), and cash flow quality is poor (operating cash flow to net income 0.018) alongside negative free cash flow growth.

Income Statement

Butn Limited has experienced significant revenue decline, with a drastic drop in revenue growth rate to -95.54% in the latest period. The company has consistently reported negative net profit margins, indicating ongoing profitability challenges. While the EBITDA margin has improved to 17.41%, the overall profitability remains weak.

Balance Sheet

The company's balance sheet shows high leverage, with a debt-to-equity ratio of 7.49, indicating significant reliance on debt financing. The return on equity is negative, reflecting losses and poor returns for shareholders. The equity ratio is low, suggesting limited equity buffer against liabilities.

Cash Flow

Butn Limited's cash flow position is concerning, with negative free cash flow growth and a low operating cash flow to net income ratio of 0.018. The free cash flow to net income ratio is moderate at 0.55, but overall cash flow management appears weak.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	12.48M	333.85K	13.49M	11.85M	5.42M	4.55M
Gross Profit	4.30M	-7.87M	13.49M	11.87M	5.60M	1.33M
EBITDA	6.31M	5.81M	-829.98K	1.72M	-3.64M	-2.13M
Net Income	-4.72M	-2.66M	-12.33M	-6.53M	-8.66M	-5.26M
Balance Sheet
Total Assets	103.31M	107.54M	91.27M	98.98M	77.82M	53.30M
Cash, Cash Equivalents and Short-Term Investments	31.93M	20.32M	13.36M	14.67M	15.78M	15.52M
Total Debt	85.80M	91.00M	79.73M	79.52M	56.35M	46.76M
Total Liabilities	89.72M	95.39M	83.16M	83.34M	59.80M	49.70M
Stockholders Equity	13.60M	12.14M	8.11M	15.64M	18.02M	3.60M
Cash Flow
Free Cash Flow	913.94K	966.21K	-3.16M	-1.83M	-7.09M	-4.58M
Operating Cash Flow	913.94K	1.74M	-2.36M	-673.74K	-3.85M	-2.43M
Investing Cash Flow	-2.61M	-14.79M	-2.64M	-26.09M	-29.48M	-3.04M
Financing Cash Flow	12.58M	15.85M	3.65M	25.61M	33.60M	11.06M

Butn Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 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:BTN, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.07, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 23.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BTN.

Butn Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EPY	65 Neutral	AU$41.45M	28.07	3.91%	4.27%	-6.67%	22.09%
HMY	58 Neutral	€88.45M	9.18	15.56%	―	7.92%	―
PNC	52 Neutral	AU$115.27M	7.61	12.72%	―	-0.51%	―
WZR	43 Neutral	AU$47.48M	-4.29	-19.44%	―	-2.35%	13.33%
MME	43 Neutral	AU$89.38M	-1.77	-42.59%	―	-9.56%	-392.31%
BTN	41 Neutral	AU$19.13M	-3.29	-26.29%	―	8.28%	84.45%

Butn Limited Corporate Events

Butn Options Lapse, Trimming Potential Equity Dilution

Butn Limited has notified the market that a total of 3,958,330 options with an exercise price of $0.50 have lapsed without being exercised, comprising 1,093,750 BTNAD options expiring on various dates and 2,864,580 BTNAH options expiring on 8 January 2026. The expiry of these options without conversion reduces the company’s pool of potential equity dilution but also indicates that the current share price did not make exercise economically attractive, a development existing shareholders may view as marginally positive for capital structure while implying limited immediate capital inflow from these instruments.

The most recent analyst rating on (AU:BTN) stock is a Sell with a A$0.09 price target. To see the full list of analyst forecasts on Butn Limited stock, see the AU:BTN Stock Forecast page.

Butn Limited Director Increases Stake in Strategic Move

Butn Limited announced a change in the director’s interest, with Rael Ross acquiring an additional 1,250,000 ordinary fully paid shares indirectly through Why K Pty Ltd, a trustee of the Rael Ross Family Trust. This acquisition, approved at the 20 November 2025 AGM, increases Ross’s total indirect holdings to 40,350,706 shares, reflecting a strategic move to strengthen his stake in the company. The increase in shareholding could potentially enhance Ross’s influence in corporate decisions and signal confidence in Butn Limited’s future prospects, potentially impacting investor perceptions and market positioning.

The most recent analyst rating on (AU:BTN) stock is a Sell with a A$0.09 price target. To see the full list of analyst forecasts on Butn Limited stock, see the AU:BTN Stock Forecast page.

Butn Limited Director Increases Stake with New Share Acquisition

Butn Limited has announced a change in the director’s interest, with Cameron Petricevic acquiring 625,000 ordinary fully paid shares, increasing his total indirect holding to 1,298,163 shares. This change, approved at the November 2025 AGM, reflects a strategic move to strengthen the director’s stake in the company, potentially impacting its governance and stakeholder confidence.

The most recent analyst rating on (AU:BTN) stock is a Sell with a A$0.09 price target. To see the full list of analyst forecasts on Butn Limited stock, see the AU:BTN Stock Forecast page.

Butn Limited Issues New Shares to Strengthen Financial Position

Butn Limited has announced the issuance of 1,875,000 fully paid ordinary shares, as approved by shareholders. This move is part of the company’s efforts to enhance its financial operations and maintain compliance with the Corporations Act 2001. The issuance of shares is expected to bolster Butn’s market position and provide additional resources to support its innovative funding solutions for SMEs.

The most recent analyst rating on (AU:BTN) stock is a Sell with a A$0.09 price target. To see the full list of analyst forecasts on Butn Limited stock, see the AU:BTN Stock Forecast page.

Butn Limited Announces Quotation of New Securities on ASX

Butn Limited has announced the quotation of 1,875,000 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code BTN, effective December 16, 2025. This move is part of a previously announced transaction and is expected to enhance the company’s liquidity and market presence, potentially benefiting stakeholders by increasing the accessibility of its shares.

The most recent analyst rating on (AU:BTN) stock is a Sell with a A$0.09 price target. To see the full list of analyst forecasts on Butn Limited stock, see the AU:BTN Stock Forecast page.