8common (ASX:8CO) Maintains Positive EBITDA and Operating Cash Flow in Q1 FY27

Aditi Sarkar

29 October 2026 05:50 PM AEDT

8common (ASX:8CO) Maintains Positive EBITDA and Operating Cash Flow in Q1 FY27

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Highlights

8common delivered positive EBITDA of $57,000 and net operating cash inflow of $91,000.
A contract worth $1.9 million including GST over three years was signed with the ATO for Expense8.
Platform users exceeded 189,000, up 2.2% year on year.
Contract extensions were secured with several government agencies and Edith Cowan University.

8common Limited (ASX:8CO) has released its quarterly report and Appendix 4C for the quarter ended 30 September 2026. The expense management software provider maintained positive EBITDA and operating cash flow, signed a contract with the Australian Taxation Office and secured several contract extensions.

Q1 FY27 Financial Performance

Total revenue for the quarter was $1.54 million, down 7.8% from $1.67 million a year earlier, while SaaS and transaction revenue was $1.24 million. The average SaaS gross margin was 73%. EBITDA was positive at $57,000, compared with $145,000 in Q1 FY26, and the company recorded a net loss of $131,000.

Cash receipts from customers were $1.65 million, resulting in a net operating cash inflow of $91,000. Cash stood at $121,000 at 30 September 2026. The company noted that the introduction of PayDay Super added about $70,000 in superannuation outflows during the quarter. An undrawn $1.5 million loan facility from Executive Chairman Nic Lim remains available until May 2027.

ATO Contract and Government Pipeline

8common signed a contract with the Australian Taxation Office for the software and platform component of Expense8. The contract is valued at $1.9 million including GST over three years and covers more than 20,000 users. No revenue has been recognised yet, and the implementation portion is still being finalised, with the project expected to begin in January 2027.

The company also secured one-year extensions with the National Anti-Corruption Commission, the Australian Radiation Protection and Nuclear Safety Agency and the National Indigenous Australians Agency, along with a two-year extension with Edith Cowan University. Its federal government pipeline covers about 197,000 potential Expense8 users.

Users, CardHero and Outlook

Platform users exceeded 189,000 at 30 September 2026, up 2.2% year on year, while average revenue per user was $26.14. The CardHero business contributed $78,000 in revenue, remained cash flow positive and saw renewed customer interest.

CEO Andrew Bond said, "We have continued to deliver positive EBITDA and operating cash flow," adding, "We are confident about the opportunities ahead for 8common." Management expects the government business to grow and recurring revenue to build over time.

Key Takeaways

8common remained EBITDA and operating cash flow positive in Q1 FY27.
The ATO contract adds a significant government customer for Expense8.
Contract extensions and a large federal pipeline support future growth.
The ATO project is expected to begin in January 2027.

FAQs

Q: What does 8common do?

A: 8common provides expense management software, including the Expense8 platform and CardHero.

Q: Was 8common profitable at the EBITDA level?

A: Yes, the company reported positive EBITDA of $57,000 for Q1 FY27.

Q: What contract was signed with the ATO?

A: 8common signed a $1.9 million contract including GST over three years for the Expense8 platform.

Q: How many users does the platform have?

A: Platform users exceeded 189,000 at 30 September 2026.

Q: When will the ATO project begin?

A: The ATO project is expected to commence in January 2027.

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