Reckon Limited (RKN) AI Stock Analysis

• Market Cap: AU$54.94M
• Dividend Yield: 4.39%
• Average Volume (3M): 74.36K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.31
• Revenue Growth: 9.30%
• EPS Growth: 11.68%
• Country: AU
• Employees: 180
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 113,294,830
• 10 Day Avg. Volume: 87,029
• 30 Day Avg. Volume: 74,356
• PEG Ratio: 0.13
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 2.73
• 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$1.05
• Price Target Upside: 84.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.07
• Revenue Forecast (FY): AU$64.57M

• Rating: 72 Outperform
• Price Target: AU$0.52 ▼(-9.47% Downside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by solid financial performance (improving growth and margins plus strong cash generation) and supportive valuation (low P/E and high dividend yield). These positives are partially offset by weak technical signals, with the stock trading below key moving averages and negative MACD.

Positive Factors

Recurring SaaS subscription model

A subscription-first business model provides durable, predictable revenue and higher customer lifetime value versus transaction sales. For Reckon this underpins recurring cash inflows, supports margin leverage as customers scale, and enables cross-sell of practice management modules over multiple years.

Negative Factors

Upward drift in leverage

An increasing debt-to-equity ratio reduces financial flexibility and raises refinancing and interest-rate exposure over the medium term. If earnings weaken, the higher leverage could constrain investment, dividends or M&A and amplify downside, making capital management more challenging.

Reckon Limited Business Overview & Revenue Model

Company Description

Reckon Limited provides software solutions in Australia, the United States, and internationally. The company operates through three divisions: Business Group; Practice Management Group, Accountants; and Practice Management Group, Legal. It offers ...

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Reckon Limited provides software solutions in Australia, the United States, and internationally. The company operates through three divisions: Business Group; Practice Management Group, Accountants; and Practice Management Group, Legal. It offers ...

How the Company Makes Money

Reckon primarily generates revenue by selling access to its software platforms on a recurring subscription basis. Key revenue streams typically include (1) ongoing SaaS subscription fees from small business customers using its accounting and payro...

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Reckon primarily generates revenue by selling access to its software platforms on a recurring subscription basis. Key revenue streams typically include (1) ongoing SaaS subscription fees from small business customers using its accounting and payro...

Reckon Limited Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	62.42M	54.04M	53.41M	51.23M	71.06M
Gross Profit	17.85M	11.90M	13.50M	13.50M	63.05M
EBITDA	26.11M	20.19M	19.70M	17.77M	29.02M
Net Income	7.37M	4.42M	5.57M	7.31M	9.82M
Balance Sheet
Total Assets	56.26M	46.40M	41.21M	39.94M	71.87M
Cash, Cash Equivalents and Short-Term Investments	894.00K	986.00K	975.00K	1.23M	1.39M
Total Debt	11.65M	6.96M	5.20M	6.49M	21.14M
Total Liabilities	30.72M	23.78M	21.58M	22.03M	40.05M
Stockholders Equity	25.67M	22.25M	19.57M	17.14M	30.53M
Cash Flow
Free Cash Flow	23.62M	17.53M	4.61M	7.47M	10.05M
Operating Cash Flow	23.80M	17.89M	19.13M	7.69M	10.79M
Investing Cash Flow	-22.44M	-14.82M	-15.29M	78.17M	12.90M
Financing Cash Flow	-1.39M	-3.08M	-4.11M	-85.93M	-23.46M

Reckon Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RKN, the sentiment is Negative. The current price of 0.57 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.53, and above the 200-day MA of 0.56, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 51.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RKN.

Reckon Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RKN	72 Outperform	AU$54.94M	5.58	28.62%	4.39%	9.30%	11.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AMX	48 Neutral	AU$21.85M	-3.90	-27.05%	―	-3.43%	-40.65%
XF1	43 Neutral	AU$19.81M	-13.76	46.05%	―	7.32%	67.11%
FLX	41 Neutral	AU$28.66M	-3.17	-151.85%	―	21.82%	6.83%
PRO	39 Underperform	AU$8.83M	-0.46	783.67%	―	-4.90%	-52.78%

Reckon Limited Corporate Events