Knosys Ltd. (KNO) AI Stock Analysis

• Market Cap: AU$4.76M
• Dividend Yield: N/A
• Average Volume (3M): 234.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 2.15%
• EPS Growth: -900.00%
• Country: AU
• Employees: 40
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 216,138,700
• 10 Day Avg. Volume: 195,563
• 30 Day Avg. Volume: 234,370
• PEG Ratio: <0.01
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.71
• P/FCF Ratio: -6.06
• 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: 42 Neutral
• Price Target: AU$0.02 ▲(5.00% Upside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

Knosys Ltd. faces significant challenges in profitability and cash flow, which are the most critical factors affecting its stock score. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Conservative capital structure

Extremely low leverage provides durable financial flexibility: it reduces refinancing and solvency risk, preserves capacity to fund product development or go-to-market investment, and allows the business more time to correct operational issues without immediate creditor pressure.

Recurring SaaS revenue model

A subscription-based SaaS model creates predictable, repeatable revenue and customer retention dynamics. Over months this supports stable revenue baselines, potential for upsell/expansion, and levered operating margin improvement as fixed platform costs scale with additional customers.

Positive revenue growth trend

Consistent top-line growth, even modest, indicates product-market fit and ongoing customer adoption. Sustained revenue growth provides a foundation for operating leverage and margin recovery if the company improves cost structure or increases higher-margin services over the next several months.

Negative Factors

Ongoing unprofitability and low gross margin

Persistent negative net and EBIT margins and a low gross margin limit the firm's ability to fund growth from internal cash and to absorb higher sales or R&D spending. Without structural margin improvement (pricing, product mix or cost cuts), profitability risk will remain a long-term constraint.

Negative operating and free cash flows

Negative operating and free cash flows drain liquidity and force reliance on external financing or equity raises. Over a multi-month horizon this limits execution of strategic initiatives, increases dilution risk, and constrains the company’s ability to scale sales and product investments.

Negative return on equity

A negative ROE signals the business is not earning acceptable returns on invested capital, implying inefficiencies in operations or pricing. This structural weakness pressures management to improve operating performance or alter capital allocation to restore shareholder value over time.

Knosys Ltd. Business Overview & Revenue Model

Company Description

Knosys Limited, a software-as-a-service information technology company, develops and licenses computer software in Australia, the United States, New Zealand, Europe, Asia, and internationally. It offers Knowledge IQ, a knowledge management solution; GreenOrbit, an intranet solution that delivers a digital workplace, which combines traditional intranet functionality with collaboration, social networking, and intelligent information distribution; and Libero, a library management solution. The company was incorporated in 2015 and is headquartered in Melbourne, Australia.

How the Company Makes Money

Knosys Ltd. generates revenue primarily through software licensing and subscription services for its knowledge management platform. The company offers tiered pricing models based on the scale and features utilized by its clients, which allows for flexibility and scalability. Additionally, Knosys earns revenue from implementation services, training, and ongoing support for its software solutions. Significant partnerships with organizations in various industries bolster its market presence and contribute to revenue growth by expanding its customer base and enhancing product offerings. Furthermore, Knosys may explore additional revenue streams through strategic collaborations, integrations with third-party applications, and potential expansion into new markets.

Knosys Ltd. Financial Statement Overview

Summary

Knosys Ltd. is experiencing revenue growth but faces significant profitability and cash flow challenges. The balance sheet is stable with low leverage, but negative returns on equity highlight inefficiencies. The company needs to focus on improving profitability and cash flow management to enhance its financial health.

Income Statement

Knosys Ltd. has shown some revenue growth, with a 5.54% increase in the latest year. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin is relatively low at 14.15%, reflecting challenges in cost management or pricing power. Overall, the income statement reflects a company facing profitability challenges despite some revenue growth.

Balance Sheet

The balance sheet of Knosys Ltd. shows a low debt-to-equity ratio of 0.014, indicating minimal leverage and a conservative capital structure. However, the return on equity is negative, reflecting ongoing losses and inefficiencies in generating returns for shareholders. The equity ratio is healthy, suggesting a strong equity base relative to total assets. Overall, the balance sheet is stable but highlights challenges in profitability.

Cash Flow

The cash flow statement indicates significant challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow issues. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is slightly better than net income, but overall cash flow management remains a concern.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	10.70M	9.63M	9.95M	8.92M	4.59M
Gross Profit	1.51M	1.09M	-377.87K	-813.60K	284.74K
EBITDA	-758.35K	1.18M	-2.13M	-2.10M	-340.08K
Net Income	-1.55M	195.19K	-2.20M	-3.05M	-543.84K
Balance Sheet
Total Assets	13.02M	14.26M	13.84M	15.40M	14.40M
Cash, Cash Equivalents and Short-Term Investments	2.82M	4.19M	2.02M	3.10M	6.53M
Total Debt	81.07K	194.38K	89.96K	94.70K	220.84K
Total Liabilities	7.11M	6.85M	6.75M	6.48M	4.38M
Stockholders Equity	5.91M	7.42M	7.09M	8.93M	10.02M
Cash Flow
Free Cash Flow	-1.25M	2.30M	-908.79K	-279.79K	547.97K
Operating Cash Flow	-1.22M	2.30M	-784.13K	-220.30K	580.11K
Investing Cash Flow	-29.88K	-7.49K	-155.35K	-3.36M	890.51K
Financing Cash Flow	-113.31K	-126.92K	-139.10K	139.12K	2.73M

Knosys Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 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:KNO, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.08 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:KNO.

Knosys 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%
WHK	43 Neutral	AU$6.44M	-4.35	―	―	13.07%	68.60%
KNO	42 Neutral	AU$4.76M	-1.73	-23.31%	―	2.15%	-900.00%

Knosys Ltd. Corporate Events

Knosys Director Phillip Carter Increases Indirect Shareholding via Off-Market Trade

Knosys Ltd. has disclosed a change in director Phillip Carter’s indirect interests, with Carter’s associated entity Granta Capital Pty Ltd acquiring 1.4 million fully paid ordinary shares via an off-market trade. The transaction, valued at $28,000, leaves Carter holding 2 million options exercisable at $0.16 along with the newly acquired shares, modestly increasing his economic exposure to the company and aligning his interests more closely with shareholders, though it does not alter the firm’s capital structure.

The notice confirms that there were no disposals or forfeitures of securities and no changes to any contracts involving the director’s interests. While operational implications are minimal, the increased shareholding may be viewed by investors as a signal of confidence from a board member in Knosys’s future prospects and governance stability.

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

Knosys Lifts Cash Receipts, Reshapes Cost Base and Signs Oak Engage Deal Ahead of Libero X Push

Knosys reported Q2 FY26 cash receipts of $1.7 million, up 6.6% year on year, and first-half FY26 cash receipts of $5.2 million, up 38% on the prior corresponding period, underpinned by an annual recurring revenue run rate of $9.5 million and strong client retention. Despite a Q2 net operating cash outflow of $1.45 million, the company has restructured to achieve a structurally lower fixed cost base from 2026, lifted its cash balance from $1.9 million at 31 December 2025 to $3.1 million by late January 2026, and maintains a positive outlook for the second half as it continues to invest in Libero 6 enhancements, the AI-powered Libero X program and sales and marketing ahead of a planned global push in FY27. A new agency agreement with UK-based Oak Engage will allow GreenOrbit customers in Australia and the US to migrate to Oak’s intranet and employee experience platform as a technology upgrade without Knosys incurring development costs, with Knosys’ GreenOrbit unit earning remuneration based on migrated customers’ recurring revenue, enabling the company to redeploy development resources toward its core library and knowledge management strategies while preserving intranet options for its existing client base.

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

Knosys Links Greenorbit Customers to Oak Engage as It Refocuses on Core Platforms

Knosys’ intranet subsidiary Greenorbit has signed a two-year agency agreement with UK-based Oak Engage to introduce Oak’s intranet and employee experience platform to Greenorbit’s existing customer base, which currently contributes around 30% of Knosys’ annual recurring revenue. Under the deal, Greenorbit will act as agent and initial billing and collection intermediary for customers who elect to migrate from the Greenorbit intranet to Oak’s platform, earning remuneration based on a multiple of each customer’s existing recurring revenue, while customers who do not migrate will remain on their current Greenorbit solution; the move allows Knosys to redirect development focus and capital toward its next-generation Libero library management system and its core knowledge management offering, while still providing intranet customers with access to more advanced technology without Knosys bearing the development burden.

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

Knosys Grants 2 Million Share Options to Director Phillip Carter

Knosys Limited has reported a change in director Phillip Carter’s interest in the company’s securities, confirming that he has been granted 2,000,000 options to acquire ordinary shares via his indirect holding entity, Granta Capital Pty Ltd. The options, issued for no cash consideration following shareholder approval at the company’s 26 November 2025 AGM, carry an exercise price of $0.16, expire four years after issue and are subject to vesting conditions, underscoring the use of equity-based incentives to align director interests with shareholder value over the medium term.

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

Knosys Grants 5 Million Director Options Under Shareholder-Approved Plan

Knosys Limited has issued 5 million unquoted options to its directors under terms previously approved by shareholders at the company’s annual general meeting held on 26 November 2025. The options, which were formally issued on 22 December 2025, form part of the company’s director remuneration and incentive arrangements, and signal an ongoing alignment of board interests with those of shareholders by linking director rewards to future company performance, although they will also modestly increase potential equity dilution for existing investors if exercised.

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