Recon Technology (RCON)
NASDAQ:RCON
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Recon Technology
(NASDAQ:RCON)
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Rating:42Neutral
Price Target:
$0.66
▼(-27.14% Downside)
Action:Reiterated
Date:05/15/26
The score is driven mainly by weak financial performance (persistent losses, negative ROE, and negative operating/free cash flow). Technicals are also unfavorable with the stock trading below key moving averages and a negative MACD, though oversold indicators slightly mitigate the downside. Valuation provides little support given a non-meaningful P/E and no dividend yield data.
Positive Factors
Revenue Growth
Sustained high top-line growth provides structural optionality for margin recovery and scale economies. Over a 2–6 month horizon, improving revenue trends support capacity utilization, pricing leverage, and the potential to absorb fixed costs, creating a credible path toward future profitability if cost control improves.
Negative Factors
Persistent Negative Profitability
Deep, recurring losses indicate structural profitability challenges: the company is not converting revenue into earnings, which undermines internal funding and investor confidence. Over several months this constrains reinvestment, limits ability to build reserves, and raises execution risk on margin recovery plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained high top-line growth provides structural optionality for margin recovery and scale economies. Over a 2–6 month horizon, improving revenue trends support capacity utilization, pricing leverage, and the potential to absorb fixed costs, creating a credible path toward future profitability if cost control improves.
Read all positive factors
Recon Technology (RCON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.40M
Dividend YieldN/A
Average Volume (3M)10.04K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth67.30%
EPS Growth-227.58%
CountryUS
Employees184
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-4.68
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 Cap2.01
Enterprise Value/Revenue1.29
Enterprise Value/Gross Profit5.60
Enterprise Value/Ebitda-1.58
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.57
Revenue Forecast (FY)$18.60M
Recon Technology Business Overview & Revenue Model
Company Description
Recon Technology, Ltd. provides hardware, software, and on-site services to companies in the petroleum mining and extraction industry in the People's Republic of China. The company offers equipment, tools, and other hardware related to oilfield pr...
How the Company Makes Money
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Recon Technology Financial Statement Overview
Summary
Income Statement
35
Negative
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 66.29M | 68.85M | 67.11M | 83.78M | 47.94M |
| Gross Profit | 15.24M | 20.88M | 18.87M | 19.42M | 7.22M |
| EBITDA | -54.17M | -47.52M | -52.01M | 101.68M | -57.66M |
| Net Income | -42.59M | -49.87M | -59.17M | 95.59M | -22.83M |
Balance Sheet | |||||
| Total Assets | 525.62M | 552.39M | 531.82M | 490.24M | 566.52M |
| Cash, Cash Equivalents and Short-Term Investments | 102.47M | 198.08M | 288.31M | 316.97M | 344.00M |
| Total Debt | 34.44M | 40.14M | 35.56M | 31.60M | 42.63M |
| Total Liabilities | 71.65M | 61.46M | 92.67M | 77.36M | 279.00M |
| Stockholders Equity | 467.43M | 502.55M | 449.21M | 420.63M | 295.10M |
Cash Flow | |||||
| Free Cash Flow | -43.71M | -44.25M | -52.63M | -26.94M | -34.57M |
| Operating Cash Flow | -33.77M | -43.75M | -51.69M | -26.25M | -34.05M |
| Investing Cash Flow | 33.71M | 2.98M | -245.22M | -328.68K | -46.54M |
| Financing Cash Flow | -3.27M | 45.02M | 56.38M | -10.00M | 394.03M |
Recon Technology Technical Analysis
Negative
0.91
Price Trends
0.83
Negative
1.09
Negative
1.43
Negative
Market Momentum
-0.09
Positive
26.61
Positive
11.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCON, the sentiment is Negative. The current price of 0.91 is above the 20-day moving average (MA) of 0.73, above the 50-day MA of 0.83, and below the 200-day MA of 1.43, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 26.61 is Positive, neither overbought nor oversold. The STOCH value of 11.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $116.45M | 25.55 | 26.73% | ― | 64.11% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $210.63M | 8.37 | 9.10% | ― | 21.72% | ― | |
51 Neutral | $98.74M | -26.87 | -2.98% | ― | -3.52% | -117.16% | |
47 Neutral | $455.29K | 7.11 | ― | ― | -3.74% | ― | |
44 Neutral | $55.16M | -0.73 | 105.06% | ― | -8.92% | -7.64% | |
42 Neutral | $42.40M | -1.14 | -6.84% | ― | 67.30% | -227.58% |
* Energy Sector Average
RCON
Recon Technology
0.59
-1.49
-71.54%
DWSN
Dawson Geophysical Company
3.89
2.56
192.48%
SND
Smart Sand
4.29
2.55
145.99%
NINE
Nine Energy Service, Inc.
10.24
2.04
24.88%
KLXE
KLX Energy Services Holdings
2.74
1.02
59.30%
DTI
Drilling Tools International
2.78
0.16
6.11%
Recon Technology Corporate Events
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 ...
Recon Technology Closes $18 Million PIPE, Expands Class A Share Base Sixfold
Apr 16, 2026
On April 10, 2026, Recon Technology entered into a securities purchase agreement with 12 non-U.S. investors for a private placement of 60 million Class A ordinary shares at $0.30 per share, raising $18 million in gross proceeds. The exempt PIPE tr...
Recon Technology Files Form 6-K With Unaudited Results for Six Months Ended December 31, 2025
Mar 13, 2026
Recon Technology, Ltd. reported unaudited financial results for the six months ended Dec. 31, 2025, via a Form 6-K filed with the U.S. Securities and Exchange Commission on March 13, 2026. The filing included interim condensed consolidated financi...
Recon Technology Shareholders Approve Major Capital Structure Changes at 2026 AGM
Feb 18, 2026
On February 13, 2026, Recon Technology, Ltd. held its annual general meeting in Beijing for the fiscal year ended June 30, 2025, where shareholders elected two Class I directors, Hu Zhongchen and Yonggang Duan, to terms running through the annual ...
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.