ReadyTech Holdings Ltd. (AU:RDY)
ASX:RDY
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ReadyTech Holdings Ltd.
(Sydney:RDY)
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Rating:56Neutral
Price Target:
AU$1.50
▼(-39.02% Downside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by mixed fundamentals: strong gross margin and revenue growth are outweighed by a swing to losses, negative ROE, and weakened free cash flow. Technicals further दबि the score due to a pronounced downtrend (below all major DMAs and negative MACD). Valuation is constrained by negative earnings (negative P/E) and no stated dividend yield.
Positive Factors
Very high gross margin
A gross margin near 94% indicates durable SaaS economics with low incremental cost to serve additional customers. This level of margin supports scalable operating leverage: as recurring revenue grows, a larger proportion can fund R&D, customer success and long-term product development.
Negative Factors
Negative net margin & ROE
Negative net margin and ROE signal the company is currently destroying shareholder value despite high gross margins. Persistent operating losses weaken retained earnings, limit reinvestment capacity, and require either sustained margin recovery or external financing to support growth over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Very high gross margin
A gross margin near 94% indicates durable SaaS economics with low incremental cost to serve additional customers. This level of margin supports scalable operating leverage: as recurring revenue grows, a larger proportion can fund R&D, customer success and long-term product development.
Read all positive factors
ReadyTech Holdings Ltd. (RDY) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$144.57M
Dividend YieldN/A
Average Volume (3M)123.54K
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth7.06%
EPS Growth-389.48%
CountryAU
Employees365
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.09
Shares Outstanding123,564,110
10 Day Avg. Volume281,357
30 Day Avg. Volume123,536
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.97
Price to Sales (P/S)2.29
P/FCF Ratio69.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.89Price Target Upside17.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.02
Revenue Forecast (FY)AU$125.58M
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. T...
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 o...
ReadyTech Holdings Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 125.13M | 121.84M | 113.80M | 103.31M | 78.28M | 50.03M |
| Gross Profit | 21.55M | 114.19M | 41.92M | 18.31M | 17.55M | 11.79M |
| EBITDA | 34.54M | 14.93M | 32.31M | 26.63M | 26.75M | 14.70M |
| Net Income | 1.23M | -16.14M | 5.46M | 4.97M | 8.79M | 2.15M |
Balance Sheet | ||||||
| Total Assets | 246.30M | 250.38M | 261.43M | 259.28M | 185.97M | 169.59M |
| Cash, Cash Equivalents and Short-Term Investments | 12.35M | 19.70M | 21.87M | 20.62M | 9.20M | 11.99M |
| Total Debt | 62.48M | 60.48M | 47.06M | 52.11M | 37.34M | 33.57M |
| Total Liabilities | 107.53M | 108.88M | 110.22M | 131.03M | 87.80M | 94.49M |
| Stockholders Equity | 138.77M | 141.50M | 151.21M | 128.25M | 98.17M | 75.10M |
Cash Flow | ||||||
| Free Cash Flow | 18.85M | 4.03M | 13.26M | 8.10M | 4.39M | 13.36M |
| Operating Cash Flow | 18.94M | 24.06M | 31.59M | 27.81M | 17.00M | 19.50M |
| Investing Cash Flow | -28.16M | -38.54M | -23.67M | -27.78M | -21.29M | -48.84M |
| Financing Cash Flow | 10.26M | 12.31M | -6.67M | 11.39M | 1.49M | 32.12M |
ReadyTech Holdings Ltd. Technical Analysis
Negative
2.46
Price Trends
1.64
Negative
2.01
Negative
2.15
Negative
Market Momentum
-0.12
Negative
34.92
Neutral
40.84
Neutral
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 above the 20-day moving average (MA) of 1.20, above the 50-day MA of 1.64, and above the 200-day MA of 2.15, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 34.92 is Neutral, neither overbought nor oversold. The STOCH value of 40.84 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | AU$398.08M | 34.06 | 11.48% | 0.43% | 17.12% | 311.38% | |
56 Neutral | AU$144.57M | -55.98 | 0.87% | ― | 7.06% | -389.48% | |
48 Neutral | AU$23.27M | -3.90 | -27.05% | ― | -3.43% | -40.65% | |
43 Neutral | AU$88.86M | -12.17 | -105.39% | ― | -41.24% | 75.68% |
* Technology Sector Average
AU:RDY
ReadyTech Holdings Ltd.
1.14
-1.11
-49.33%
AU:EOL
Energy One Limited
12.67
2.39
23.29%
AU:YOJ
Yojee Ltd.
0.25
0.11
88.46%
AU:RCL
ReadCloud Ltd.
0.07
-0.02
-23.16%
AU:AMX
Aerometrex Ltd.
0.25
0.04
19.51%
ReadyTech Holdings Ltd. Corporate Events
ReadyTech underscores scale and AI compliance in 1H FY26 update
Feb 25, 2026
ReadyTech has highlighted the scale and critical nature of its software platforms in its 1H FY26 update, emphasising their role across education, workforce management, and public sector operations. The company underscored its broad market penetrat...
ReadyTech flags contract wins, AI push as it lifts first-half revenue
Feb 25, 2026
ReadyTech reported first-half FY26 revenue of $61.6 million, up 5.6% year on year, with subscription revenue rising to $51.8 million and recurring income comprising 84% of total sales. Growth was led by enterprise flagship products, notably Ready ...
ReadyTech Sets Date for 1H FY26 Results and Investor Briefing
Jan 12, 2026
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 communica...
ReadyTech Announces Change in Company Secretary
Dec 16, 2025
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...
ReadyTech Holdings Announces Director’s Interest Change
Dec 16, 2025
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’...
ReadyTech Issues Performance Rights to Employees
Dec 16, 2025
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, potentia...
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.