Highlights

  • Revenue eased 7.8% to A$1.54 million in the Sep-2026 quarter, while EBITDA remained positive at A$57,000.
  • Net operating cash inflow of A$91,000 absorbed roughly A$70,000 in extra Superannuation payments from the PayDay Super changeover.
  • The three-year ATO Expense8 contract, covering more than 20,000 users, is expected to commence in January 2027.
  • FY26 delivered a maiden full-year net profit of A$106,000 and repayment of all borrowings.

8common (ASX:8CO) generated positive Operating Cash Flow for the September 2026 quarter, even as Revenue dipped and a one-off superannuation adjustment added to costs. The expense management software company reported a net operating cash inflow of A$91,000 for the three months to 30 September 2026, while its largest new contract, a three-year Expense8 agreement with the Australian Taxation Office, is still awaiting its scheduled start in January 2027.

The quarter followed FY26, in which the company recorded its first full-year net profit.

Softer Quarter on Revenue and Earnings

Total revenue for the Sep-2026 quarter was A$1.54 million, down 7.8% from A$1.67 million a year earlier, with SaaS and transaction revenue slipping 4.2% to A$1.24 million. Cost of Goods Sold fell 10.7%, supporting an average SaaS gross Margin of 73%, but EBITDA declined to A$57,000 from A$145,000 and the net loss widened to A$131,000.

Platform users rose 2.2% year on year to more than 189,000, while average revenue per user declined 6.5% to A$26.14. Prepaid card Business CardHero contributed A$78,000 of revenue and remained cash-flow positive.

Cash Position and Chairman's Facility

Customer receipts were A$1.65 million. The operating inflow included about A$70,000 in additional superannuation outflows because the PayDay Super changeover produced two quarters of payments in one period. Cash edged up to A$121,000 at 30 September 2026 from A$114,000 at 30 June.

The company has no drawn debt. A A$1.5 million unsecured Facility from Executive Chairman Nic Lim, carrying 6% annual interest and expiring on 1 May 2027, remains undrawn, giving total available funding of A$1.62 million.

FY26 Delivered a Maiden Net Profit

For FY26 to 30 June 2026, revenue from continuing operations fell 12% to A$6.42 million, mainly because of lower implementation revenue, while SaaS and annual licence revenue held near A$5.05 million. EBITDA improved to about A$925,000, and net profit after tax was A$106,000 compared with a loss of A$794,000 a year earlier. Operating cash flow rose to A$720,000, and the company repaid A$453,000 of borrowings. Annualised Recurring Revenue was A$5.1 million at 30 June 2026.

Government Pipeline Sets Up FY27

Expense8 serves more than 194 state and federal government entities as well as enterprise customers including Woolworths and Amcor. The ATO agreement carries a total contract value of about A$1.9 million including GST over three years. Implementation work is pending finalisation, and no revenue has yet been recognised. During the quarter, the National Anti-Corruption Commission, ARPANSA and the National Indigenous Australians Agency signed one-year extensions, and Edith Cowan University extended for two years.

Management cites about 197,000 potential Expense8 users in its federal government pipeline and expects user volumes and recurring revenue to build through FY27, without numeric guidance. The Annual General Meeting is scheduled for 20 November 2026 in Sydney. Shares were priced at A$0.026 on 2 November 2026, down 10.35% on the day, with a Market Capitalisation of A$5.83 million.