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Recon Technology
(NASDAQ:RCON)
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Rating:41Neutral
Price Target:
$0.34
▼(-27.02% Downside)
Action:Reiterated
Date:07/22/26
The score is driven primarily by weak financial performance, with ongoing losses and negative operating/free cash flow despite recent revenue growth. Technicals also detract due to a clear downtrend (below key moving averages) and negative MACD, while valuation is constrained by negative earnings (negative P/E) and no available dividend yield.
Positive Factors
Strong Revenue Growth
Sustained high top-line growth indicates durable demand for Recon’s oilfield equipment and services, helping expand scale and customer footprints. If maintained, revenue expansion can enable operating leverage, support investment in product development, and strengthen competitive positioning over the medium term.
Negative Factors
Persistent Unprofitability
Deep and persistent negative margins indicate structural profitability challenges: costs, pricing, or mix issues that prevent converting revenue into profits. Over the medium term, sustained unprofitability impairs reinvestment capacity, shareholder returns, and ability to achieve positive ROE without operational improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained high top-line growth indicates durable demand for Recon’s oilfield equipment and services, helping expand scale and customer footprints. If maintained, revenue expansion can enable operating leverage, support investment in product development, and strengthen competitive positioning over the medium term.
Read all positive factors
Recon Technology (RCON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.44M
Dividend YieldN/A
Average Volume (3M)10.04K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth67.30%
EPS Growth-227.58%
CountryUS
Employees188
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-3.00
Shares Outstanding70,627,426
10 Day Avg. Volume15,371
30 Day Avg. Volume10,038
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.35
Price to Sales (P/S)2.48
P/FCF Ratio-3.76
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.58
Revenue Forecast (FY)$11.90M
Recon Technology Business Overview & Revenue Model
Company Description
Recon Technology, Ltd. (RCON) is a company that delivers a comprehensive suite of hardware, software, and field-based services to enterprises operating within China's petroleum exploration and production sector. The company's hardware portfolio en...
How the Company Makes Money
RCON makes money primarily by selling oilfield-related products and delivering oilfield services to petroleum companies. Revenue is generally generated through (1) product revenue from the manufacture and sale (and in some cases installation/commi...
Recon Technology Financial Statement Overview
Summary
Income Statement
35
Negative
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 109.26M | 66.29M | 68.85M | 67.11M | 83.78M | 47.94M |
| Gross Profit | 30.36M | 15.24M | 20.88M | 18.87M | 19.42M | 7.22M |
| EBITDA | -40.00M | -54.17M | -47.52M | -52.01M | 101.68M | -57.66M |
| Net Income | -27.82M | -42.59M | -49.87M | -59.17M | 95.59M | -22.83M |
Balance Sheet | ||||||
| Total Assets | 543.00M | 525.62M | 552.39M | 531.82M | 490.24M | 566.52M |
| Cash, Cash Equivalents and Short-Term Investments | 75.08M | 102.47M | 198.08M | 288.31M | 316.97M | 344.00M |
| Total Debt | 37.73M | 34.44M | 40.14M | 35.56M | 31.60M | 42.63M |
| Total Liabilities | 91.93M | 71.65M | 61.46M | 92.67M | 77.36M | 279.00M |
| Stockholders Equity | 464.38M | 467.43M | 502.55M | 449.21M | 420.63M | 295.10M |
Cash Flow | ||||||
| Free Cash Flow | -53.52M | -43.71M | -44.25M | -52.63M | -26.94M | -34.57M |
| Operating Cash Flow | -34.57M | -33.77M | -43.75M | -51.69M | -26.25M | -34.05M |
| Investing Cash Flow | -28.57M | 33.71M | 2.98M | -245.22M | -328.68K | -46.54M |
| Financing Cash Flow | 2.37M | -3.27M | 45.02M | 56.38M | -10.00M | 394.03M |
Recon Technology Technical Analysis
Neutral
0.47
Price Trends
0.49
Negative
0.70
Negative
1.06
Negative
Market Momentum
-0.02
Negative
49.64
Neutral
42.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCON, the sentiment is Neutral. The current price of 0.47 is above the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.49, and below the 200-day MA of 1.06, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.64 is Neutral, neither overbought nor oversold. The STOCH value of 42.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RCON.
Recon Technology Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $185.27M | 7.69 | 9.10% | ― | 21.72% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
52 Neutral | $144.71M | 29.81 | 26.73% | ― | 64.11% | ― | |
52 Neutral | $455.29K | 7.99 | ― | ― | -3.74% | ― | |
50 Neutral | $82.58M | -23.83 | -2.98% | ― | -3.52% | -117.16% | |
44 Neutral | $43.61M | -0.58 | 105.06% | ― | -8.92% | -7.64% | |
41 Neutral | $31.44M | -0.99 | -5.97% | ― | 67.30% | -227.58% |
* Energy Sector Average
RCON
Recon Technology
0.42
-2.72
-86.66%
DWSN
Dawson Geophysical Company
4.66
3.25
230.50%
SND
Smart Sand
4.32
2.50
136.97%
NINE
Nine Energy Service, Inc.
11.10
2.90
35.37%
KLXE
KLX Energy Services Holdings
2.16
0.49
29.34%
DTI
Drilling Tools International
2.40
0.30
14.29%
Recon Technology Corporate Events
Recon Technology Launches $100 Million ATM Equity Offering
Jul 31, 2026
On July 28, 2026, Recon Technology, Ltd. entered into an At-the-Market Issuance Sales Agreement with Pacific Century Securities, LLC, allowing the company to issue and sell up to $100 million of its Class A ordinary shares from time to time. The p...
Recon Technology Faces Nasdaq Bid-Price Deficiency After Shares Fall Below $1
May 6, 2026
On May 4, 2026, Recon Technology received a notice from Nasdaq that its shares had closed below the $1.00 minimum bid price for 30 consecutive business days, putting the company out of compliance with listing rules but not triggering an immediate ...
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.