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Recon Technology (RCON)
NASDAQ:RCON
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Recon Technology (RCON) AI Stock Analysis

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RCON

Recon Technology

(NASDAQ:RCON)

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Neutral 41 (OpenAI - 5.2)
Rating:41Neutral
Price Target:
$0.42
▼(-54.07% Downside)
Action:Reiterated
Date:06/25/26
The score is primarily held down by weak financial performance (large losses and negative operating/free cash flow) and a strongly bearish technical setup (price below all key moving averages with negative MACD). Low leverage provides some balance-sheet stability, but valuation is constrained by negative earnings and no indicated dividend support.
Positive Factors
Revenue Growth
Recon's recent 46.8% revenue acceleration signals resilient demand for its oilfield equipment and services. Sustained top-line growth gives the company scope to leverage fixed costs and recover margins over time if management pares inefficiencies and focuses on higher-margin product or service lines.
Negative Factors
Deep Unprofitability
Persistent steep losses and negative operating profitability indicate structural problems with cost control, pricing, or product mix. Such deep unprofitability erodes equity, limits reinvestment capacity, and forces reliance on external capital unless the company achieves meaningful margin improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Recon's recent 46.8% revenue acceleration signals resilient demand for its oilfield equipment and services. Sustained top-line growth gives the company scope to leverage fixed costs and recover margins over time if management pares inefficiencies and focuses on higher-margin product or service lines.
Read all positive factors

Recon Technology (RCON) vs. SPDR S&P 500 ETF (SPY)

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
Despite strong recent revenue growth (46.8%), the company remains deeply unprofitable with a -64.25% net margin and negative EBIT/EBITDA margins. The balance sheet shows low leverage (debt-to-equity 0.0737), but negative ROE and continued negative operating/free cash flow indicate ongoing operational and profitability stress.
Income Statement
35
Negative
Balance Sheet
55
Neutral
Cash Flow
40
Negative
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue109.26M66.29M68.85M67.11M83.78M47.94M
Gross Profit30.36M15.24M20.88M18.87M19.42M7.22M
EBITDA-40.00M-54.17M-47.52M-52.01M101.68M-57.66M
Net Income-27.82M-42.59M-49.87M-59.17M95.59M-22.83M
Balance Sheet
Total Assets543.00M525.62M552.39M531.82M490.24M566.52M
Cash, Cash Equivalents and Short-Term Investments75.08M102.47M198.08M288.31M316.97M344.00M
Total Debt37.73M34.44M40.14M35.56M31.60M42.63M
Total Liabilities91.93M71.65M61.46M92.67M77.36M279.00M
Stockholders Equity464.38M467.43M502.55M449.21M420.63M295.10M
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-28.57M33.71M2.98M-245.22M-328.68K-46.54M
Financing Cash Flow2.37M-3.27M45.02M56.38M-10.00M394.03M

Recon Technology Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.91
Price Trends
50DMA
0.60
Negative
100DMA
0.83
Negative
200DMA
1.18
Negative
Market Momentum
MACD
-0.06
Negative
RSI
36.05
Neutral
STOCH
40.56
Neutral
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 0.45, above the 50-day MA of 0.60, and below the 200-day MA of 1.18, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 36.05 is Neutral, neither overbought nor oversold. The STOCH value of 40.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RCON.

Recon Technology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$206.33M8.499.10%21.72%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
57
Neutral
$235.07M49.1426.73%64.11%
52
Neutral
$455.29K7.66-3.74%
50
Neutral
$78.01M-22.46-2.98%-3.52%-117.16%
49
Neutral
$48.98M-0.64105.06%-8.92%-7.64%
41
Neutral
$30.45M-0.96-6.84%67.30%-227.58%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RCON
Recon Technology
0.42
-2.15
-83.50%
DWSN
Dawson Geophysical Company
7.57
6.24
469.17%
SND
Smart Sand
4.80
2.96
160.16%
NINE
Nine Energy Service, Inc.
10.93
2.73
33.29%
KLXE
KLX Energy Services Holdings
2.46
0.75
43.86%
DTI
Drilling Tools International
2.22
-0.17
-7.11%

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...
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: Jun 25, 2026