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ReadyTech Holdings Ltd. (AU:RDY)
ASX:RDY
Australian Market
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ReadyTech Holdings Ltd. (RDY) AI Stock Analysis

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AU:RDY

ReadyTech Holdings Ltd.

(Sydney:RDY)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
AU$2.50
▲(13.64% 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
Revenue Growth
Consistent revenue growth indicates a strong market position and effective business model, providing a stable foundation for future expansion.
Gross Profit Margin
A robust gross profit margin highlights operational efficiency and pricing power, which are crucial for sustaining profitability in the long term.
Stable Balance Sheet
A balanced approach to leverage with a moderate debt-to-equity ratio supports financial stability and flexibility, aiding long-term strategic initiatives.
Negative Factors
Profitability Challenges
Declining profitability and negative net profit margin indicate operational challenges, which could hinder investment in growth and innovation.
Cash Flow Decline
Reduced cash generation efficiency limits the company's ability to reinvest in its operations and manage financial obligations, impacting long-term sustainability.
Negative Return on Equity
Negative return on equity suggests inefficiencies in generating returns from shareholders' equity, which could deter investment and affect future growth prospects.

ReadyTech Holdings Ltd. (RDY) vs. iShares MSCI Australia ETF (EWA)

ReadyTech Holdings Ltd. Business Overview & Revenue Model

Company DescriptionReadyTech Holdings Ltd. (RDY) is a leading provider of technology solutions and services, focusing primarily on the education and training sectors. The company specializes in delivering innovative digital platforms that enhance learning experiences, streamline administrative processes, and facilitate the management of educational institutions. With a diverse portfolio of products including learning management systems, student management software, and vocational training solutions, ReadyTech is committed to empowering educators and learners alike to achieve their goals through technology.
How the Company Makes MoneyReadyTech 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
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue121.84M121.84M113.80M103.31M78.28M50.03M
Gross Profit34.53M114.19M41.92M18.31M17.55M11.79M
EBITDA25.34M14.93M32.58M26.63M26.75M14.80M
Net Income-16.14M-16.14M5.46M4.97M8.79M2.15M
Balance Sheet
Total Assets250.38M250.38M261.43M259.28M185.97M169.59M
Cash, Cash Equivalents and Short-Term Investments19.70M19.70M21.87M20.62M9.20M11.99M
Total Debt60.48M60.48M47.06M52.11M37.34M33.57M
Total Liabilities108.88M108.88M110.22M131.03M87.80M94.49M
Stockholders Equity141.50M141.50M151.21M128.25M98.17M75.10M
Cash Flow
Free Cash Flow22.94M4.03M13.26M8.10M4.39M13.36M
Operating Cash Flow24.06M24.06M31.59M27.81M17.00M19.50M
Investing Cash Flow-38.54M-38.54M-23.67M-27.78M-21.29M-48.84M
Financing Cash Flow12.31M12.31M-6.67M11.39M1.49M32.12M

ReadyTech Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.20
Price Trends
50DMA
2.26
Negative
100DMA
2.30
Negative
200DMA
2.47
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
49.62
Neutral
STOCH
75.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RDY, the sentiment is Neutral. The current price of 2.2 is above the 20-day moving average (MA) of 2.19, below the 50-day MA of 2.26, and below the 200-day MA of 2.47, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.62 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:RDY.

ReadyTech Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
€607.68M102.7110.18%0.38%17.12%311.38%
$37.18B12.37-10.20%1.83%8.50%-7.62%
AU$271.84M-16.31-11.03%7.06%-389.48%
-0.62%-225.64%
AU$25.17M-3.83-31.01%-3.43%-40.65%
AU$138.91M-140.76%-41.24%75.68%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RDY
ReadyTech Holdings Ltd.
2.20
-0.80
-26.67%
AU:EOL
Energy One Limited
19.83
14.32
260.09%
AU:YOJ
Yojee Ltd.
0.40
0.31
344.44%
AU:RCL
ReadCloud Ltd.
0.08
>-0.01
-11.11%
AU:EVS
EnviroSuite Ltd
0.09
<0.01
12.50%
AU:AMX
Aerometrex Ltd.
0.26
-0.07
-21.21%

ReadyTech Holdings Ltd. Corporate Events

ReadyTech Responds to Cybersecurity Breach in VETtrak System
Oct 24, 2025

ReadyTech Holdings Ltd. has reported a cyber incident involving its VETtrak student management system, where a cybercriminal has published documents containing personal information. The company is actively responding by collaborating with government agencies, including the Australian Federal Police, and notifying relevant privacy commissioners. Investigations are ongoing to determine the full scope of the breach, and affected individuals will be informed of protective measures.

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.

ReadyTech Releases Typeset 2025 Annual Report
Oct 22, 2025

ReadyTech Holdings Limited has released a typeset version of its 2025 Annual Report, which includes a letter from the Chair and CEO, with no other changes from the previously lodged version. This release underscores the company’s commitment to transparency and communication with stakeholders, reinforcing its industry position as a key player in SaaS solutions for various sectors.

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.

ReadyTech Reports Cyber Incident Affecting VETtrak Platform
Oct 17, 2025

ReadyTech Holdings Ltd. has reported a cyber incident involving its VETtrak student management system, leading to its temporary isolation. The company is working with external experts to assess the incident’s impact and has notified relevant cybersecurity authorities, 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.

ReadyTech Announces 2025 Annual General Meeting Details
Oct 16, 2025

ReadyTech Holdings Limited has announced the details for its 2025 Annual General Meeting, scheduled for November 18, 2025, in Sydney. The meeting will include discussions on the company’s performance over the past year and will seek shareholder approval on various resolutions. The board unanimously recommends voting in favor of all proposed resolutions, reflecting confidence in the company’s strategic direction and operational performance.

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.

ReadyTech Appoints New CFO to Strengthen Leadership
Oct 15, 2025

ReadyTech Holdings Limited has appointed Bryce Thompson as its new Chief Financial Officer and Joint Company Secretary, effective November 2025. Thompson, with over 20 years of experience in finance and investment banking, is expected to bring significant expertise in capital markets and strategic transactions to ReadyTech, enhancing its leadership team during a period of growth.

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.

ReadyTech Issues New Performance Rights to Employees
Oct 13, 2025

ReadyTech Holdings Ltd. announced the issuance of 115,075 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions, reflecting the company’s strategy to incentivize its workforce and align employee interests with long-term corporate goals.

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.

ReadyTech Announces Change in Company Secretary
Sep 3, 2025

ReadyTech Holdings Limited has announced a change in its company secretary position, with Melissa Jones resigning and William Hundy being appointed as her successor, effective 3 September 2025. This change is part of ReadyTech’s ongoing corporate governance efforts, and Mr. Hundy will be responsible for communications with the ASX, potentially impacting the company’s operational communications and stakeholder engagement.

The most recent analyst rating on (AU:RDY) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech Announces Director’s Interest Change
Sep 2, 2025

ReadyTech Holdings Limited announced a change in the director’s interest, specifically regarding Marc Washbourne’s performance rights. The company disclosed that 47,380 performance rights lapsed as part of the FY23 Long Term Incentive Award, reducing Washbourne’s direct holdings in performance rights.

The most recent analyst rating on (AU:RDY) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech Holdings Ltd. Releases Corporate Governance Statement
Aug 27, 2025

ReadyTech Holdings Ltd. has released its Corporate Governance Statement, highlighting the Board’s responsibilities and the framework for effective management and oversight. The statement outlines the Board’s role in representing shareholders, overseeing strategies, and ensuring compliance with legal and regulatory requirements. The Board has established two committees, the Audit and Risk Committee and the Nomination and Remuneration Committee, to assist in its functions. The governance practices are aligned with the ASX Corporate Governance Council’s Principles and Recommendations, reflecting the company’s commitment to transparency and accountability.

The most recent analyst rating on (AU:RDY) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech Holdings Ltd. Reports Strong FY25 Results, Reinforcing Market Position
Aug 27, 2025

ReadyTech Holdings Ltd. has announced its FY25 full-year results, highlighting its extensive reach and impact in processing significant volumes of payroll, council property rates, and justice cases. The company’s software supports over two million students, apprentices, and job seekers, and processes payroll for over one million employees annually. This announcement underscores ReadyTech’s strong position in the market and its commitment to providing mission-critical software solutions that address the specific needs of its diverse clientele.

The most recent analyst rating on (AU:RDY) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech Reports Strong FY25 Performance and Strategic Growth Initiatives
Aug 27, 2025

ReadyTech Holdings Ltd. reported a successful fiscal year 2025 with a 7.1% increase in total revenue, reaching $121.8 million, driven by strong performance in its flagship products. The company secured $15.4 million in new business wins, with significant contracts in education and workforce solutions, and a rebound in the government segment. ReadyTech is focusing on AI innovation and expanding its enterprise pipeline to capitalize on the growing demand for digital transformation, positioning itself for accelerated growth in the coming years.

The most recent analyst rating on (AU:RDY) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech Reports Revenue Growth but Faces Financial Loss
Aug 27, 2025

ReadyTech Holdings Limited reported a 7.1% increase in revenues to $121.8 million for the year ended June 30, 2025, but faced a significant loss of $16.1 million, a sharp decline from the previous year’s profit. The acquisition of CouncilWise Pty Ltd was completed, potentially expanding ReadyTech’s market capabilities, though no dividends were declared for the period.

The most recent analyst rating on (AU:RDY) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

ReadyTech to Announce FY25 Financial Results
Aug 5, 2025

ReadyTech Holdings Limited is set to announce its financial results for the fiscal year ending June 30, 2025, on August 27, 2025. The announcement will be accompanied by an investor and analyst briefing hosted by the company’s CEO and CFO. This event is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (AU:RDY) stock is a Hold with a A$3.15 price target. To see the full list of analyst forecasts on ReadyTech Holdings Ltd. stock, see the AU:RDY Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 04, 2025