ReadyTech Holdings Ltd. (RDY) AI Stock Analysis

• Market Cap: AU$273.08M
• Dividend Yield: N/A
• Average Volume (3M): 123.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: 7.06%
• EPS Growth: -389.48%
• Country: AU
• Employees: 365
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.08
• Shares Outstanding: 123,564,110
• 10 Day Avg. Volume: 281,357
• 30 Day Avg. Volume: 123,536
• PEG Ratio: 0.05
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 2.29
• P/FCF Ratio: 69.17
• 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: AU$2.60
• Price Target Upside: 5.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: AU$2.50 ▲(1.63% Upside)

ReadyTech Holdings Ltd. faces significant challenges in profitability and cash flow, impacting its financial performance score. Technical indicators suggest bearish momentum, while valuation metrics highlight unprofitability and lack of dividends. These factors collectively result in a moderate overall stock score.

Positive Factors

Recurring SaaS & Services Revenue

A subscription-plus-services model creates durable, predictable revenue streams and high customer retention potential. Recurring fees plus implementation and support services enable upsells, multi-year contracts and better lifetime value, supporting steady cash flow and long-term planning.

Very High Gross Margin

A ~94% gross margin is characteristic of scalable software businesses and provides material operating leverage. If maintained, it allows investment in R&D, go-to-market and customer success while converting incremental revenue to margin, supporting durable profitability improvements over time.

Moderate Leverage on Balance Sheet

A debt-to-equity of 0.43 indicates conservative use of leverage, giving the company flexibility to fund organic growth, product development or targeted acquisitions without excessive solvency risk. This capital structure supports durable strategic options over several quarters.

Negative Factors

Negative Net Profit Margin

Sustained negative net margins mean the business is not converting revenue into profit, limiting retained earnings and reinvestment capacity. Without structural cost reductions or price increases, persistent losses can impair ability to fund growth and weaken long-term shareholder returns.

Severe Free Cash Flow Decline

A sharp FCF decline and weak OCF-to-net-income conversion signal poor cash generation. This constrains reinvestment in product and sales, increases reliance on external financing, and poses a durable headwind to scaling operations until cash conversion improves materially.

Negative Return on Equity

Negative ROE indicates the company is destroying shareholder capital rather than creating it, reflecting operational inefficiencies or unprofitable investments. Over months this can hinder capital raising and investor confidence, limiting strategic flexibility and growth execution.

ReadyTech Holdings Ltd. Business Overview & Revenue Model

Company Description

ReadyTech Holdings Limited provides SaaS technology for education and work pathways, workforce solutions, and government and justice markets in Australia. It operates in three segments: Education, Workforce Solutions, and Government and Justice. The Education segment offers cloud-based student and learning management systems for education and training providers to manage the student lifecycle, including student enrolment and course completion. This segment also provides platforms to help state governments to manage vocational education and training programs; software platforms for the pathways and back-to-work sector to manage apprentices and job seekers; and a competency assessment and skills profiling tools to track on-the-job training through a qualification. The Workforce Solutions segment offers payroll software, outsourced payroll services, and human resource management software solutions to mid-sized company to assist with payroll and management of their employees. This segment also provides human resource (HR) administration services, such as employee records, workplace health and safety, and organizational structure, as well as talent management services. The Government and Justice segment offers government and justice case management software as a service solutions to local and state governments, and justice departments; and provides asset management, property, licensing and compliance, finance, HR and payroll, and customer management products. ReadyTech Holdings Limited was founded in 1998 and is headquartered in Pyrmont, Australia.

How the Company Makes Money

ReadyTech generates revenue primarily through the sale of its software solutions and services to educational institutions and training providers. The company's revenue model is based on subscription fees for its software platforms, which provide ongoing access to its technology and support services. Key revenue streams include licensing fees from its learning management systems and student management software, as well as implementation and training services that accompany these platforms. Additionally, ReadyTech may benefit from strategic partnerships with educational organizations and technology providers that enhance its offerings and expand its market reach, contributing to its overall earnings.

ReadyTech Holdings Ltd. Financial Statement Overview

Summary

ReadyTech Holdings Ltd. demonstrates strong revenue growth and a robust gross profit margin, but faces challenges in profitability and cash flow generation. The balance sheet remains stable with moderate leverage, but the negative return on equity and declining cash flow metrics highlight areas for improvement.

Income Statement

ReadyTech Holdings Ltd. has shown consistent revenue growth over the years, with a recent growth rate of 3.78% in 2025. However, the company experienced a significant decline in profitability, as indicated by a negative net profit margin of -13.25% in 2025, compared to a positive margin in previous years. The gross profit margin remains strong at 93.73%, but the EBIT and EBITDA margins have decreased, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.43, indicating a balanced approach to leverage. However, the return on equity has turned negative at -11.41% in 2025, suggesting inefficiencies in generating returns from shareholders' equity. The equity ratio remains stable, reflecting a solid capital structure.

Cash Flow

ReadyTech's cash flow performance has been mixed, with a significant decline in free cash flow growth by -77.99% in 2025. The operating cash flow to net income ratio is 0.51, indicating some challenges in converting income into cash. The free cash flow to net income ratio has also decreased, reflecting reduced cash generation efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	121.84M	121.84M	113.80M	103.31M	78.28M	50.03M
Gross Profit	34.53M	114.19M	41.92M	18.31M	17.55M	11.79M
EBITDA	25.34M	14.93M	32.31M	26.63M	26.75M	14.70M
Net Income	-16.14M	-16.14M	5.46M	4.97M	8.79M	2.15M
Balance Sheet
Total Assets	250.38M	250.38M	261.43M	259.28M	185.97M	169.59M
Cash, Cash Equivalents and Short-Term Investments	19.70M	19.70M	21.87M	20.62M	9.20M	11.99M
Total Debt	60.48M	60.48M	47.06M	52.11M	37.34M	33.57M
Total Liabilities	108.88M	108.88M	110.22M	131.03M	87.80M	94.49M
Stockholders Equity	141.50M	141.50M	151.21M	128.25M	98.17M	75.10M
Cash Flow
Free Cash Flow	22.94M	4.03M	13.26M	8.10M	4.39M	13.36M
Operating Cash Flow	24.06M	24.06M	31.59M	27.81M	17.00M	19.50M
Investing Cash Flow	-38.54M	-38.54M	-23.67M	-27.78M	-21.29M	-48.84M
Financing Cash Flow	12.31M	12.31M	-6.67M	11.39M	1.49M	32.12M

ReadyTech Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RDY, the sentiment is Negative. The current price of 2.46 is below the 20-day moving average (MA) of 2.51, above the 50-day MA of 2.44, and above the 200-day MA of 2.31, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.51 is Neutral, neither overbought nor oversold. The STOCH value of 6.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RDY.

ReadyTech Holdings 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%
EOL	60 Neutral	AU$488.30M	88.52	10.18%	0.43%	17.12%	311.38%
RDY	54 Neutral	AU$273.08M	-16.38	-11.03%	―	7.06%	-389.48%
AMX	48 Neutral	AU$25.17M	-3.83	-31.01%	―	-3.43%	-40.65%
YOJ	46 Neutral	AU$117.30M	-15.94	-140.76%	―	-41.24%	75.68%

ReadyTech Holdings Ltd. Corporate Events

ReadyTech Sets Date for 1H FY26 Results and Investor Briefing

ReadyTech Holdings Ltd has scheduled the release of its financial results for the six months ended 31 December 2025 on 26 February 2026, accompanied by an investor and analyst briefing hosted by its CEO and CFO. The timing and structured communication of these half-year results underscore the company’s efforts to maintain transparency with the market and engage closely with investors as it executes its growth strategy across its targeted public and workforce-facing SaaS verticals.

The most recent analyst rating on (AU:RDY) stock is a Buy with a A$2.60 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech Announces Change in Company Secretary

ReadyTech Holdings Limited announced a change in its company secretary position, with William Hundy resigning and Andrew Palfreyman from Confidant Partners taking over the role. This transition is effective as of December 16, 2025, and signifies a strategic move for ReadyTech in maintaining robust communication with the ASX, potentially impacting its operational efficiency and stakeholder relations.

The most recent analyst rating on (AU:RDY) stock is a Buy with a A$2.60 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech Holdings Announces Director’s Interest Change

ReadyTech Holdings Ltd. announced a change in the director’s interest, with Marc Washbourne acquiring 256,831 performance rights as approved by shareholders. This adjustment in director’s securities holdings reflects the company’s ongoing governance and shareholder engagement, potentially impacting stakeholder perceptions and the company’s strategic direction.

The most recent analyst rating on (AU:RDY) stock is a Buy with a A$2.60 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech Issues Performance Rights to Employees

ReadyTech Holdings Ltd. announced the issuance of 1,631,383 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize employees, potentially enhancing workforce motivation and aligning employee interests with company performance.

The most recent analyst rating on (AU:RDY) stock is a Buy with a A$2.60 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech Holdings Announces 2025 AGM Presentation

ReadyTech Holdings Limited announced the presentation and addresses for its 2025 Annual General Meeting. This event marks an important occasion for stakeholders to gain insights into the company’s strategic direction and operational updates, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:RDY) stock is a Buy with a A$2.60 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech Addresses Cybersecurity Breach in VETtrak System

ReadyTech Holdings Ltd. has reported a cyber incident involving its VETtrak student management system, where a cybercriminal published 13,866 files containing potentially sensitive information. The company is working with cybersecurity experts and affected customers to assess the impact and has taken legal steps to prevent further data dissemination. ReadyTech is collaborating with authorities and prioritizing the security and privacy of customer data.

The most recent analyst rating on (AU:RDY) stock is a Hold with a A$2.63 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.