Highlights

  • Reckon reported half-year net profit of A$4.5 million, up 6%, on Revenue of A$31.9 million for H1 2026.
  • Reckon One revenue grew 23% to A$5.4 million as legacy customers continued moving onto the cloud platform.
  • Net Debt fell to A$1.5 million at 30 June 2026 after the final Cashflow Manager instalment was paid.
  • The board declared a fully Franked Dividend of 2.5 cents per share, paid on 31 August 2026.

Reckon Limited (ASX:RKN) is relying on two cloud growth engines to offset a slow decline in its older desktop software. In its results for the six months to 30 June 2026, released on 4 August 2026, the accounting and legal software provider held group Earnings broadly steady while its Reckon One platform and US legal billing products expanded.

Group revenue slipped 3% to A$31.9 million, or 1% in constant currency. EBITDA edged up 1% to A$14.2 million and net profit after tax rose 6% to A$4.5 million. Adjusted for currency and a government stimulus receipt in the prior period, EBITDA grew 6% and net profit 18%.

Reckon One Carries the Business Group

The Business Group, which serves small businesses across Australia and New Zealand with accounting and Payroll software, generated A$25.4 million of revenue, down from A$26.1 million, with subscriptions making up 93%. Cloud subscription revenue rose 2% to A$14.4 million, and all of that growth came from Reckon One.

Reckon One revenue climbed 23% to A$5.4 million and average revenue per subscription increased 19%. The platform now represents about 22% of subscription revenue as the migration of legacy customers progresses. Divisional EBITDA was stable at A$14.0 million, a 55% margin, or 34% after A$5.3 million of development costs. Recent additions to Reckon One include Payday Super, inventory management, enhanced reporting and employee onboarding.

Legal Billing Workflows Gain Ground in the US

The Legal Group, operating as Zebraworks, lifted subscription revenue 4% to A$6.2 million. Billing Workflows subscription revenue nearly doubled in constant currency, rising 97%, and the business sold licences covering about 6,400 attorneys, up from 4,800 a year earlier. Installed attorneys rose to 3,000 from 1,900.

Management now estimates the US serviceable market for its billing products at 175,000 attorneys, compared with 77,000 at FY25. The division counts 12 of the world's 20 largest law firms among its clients, and a new sales team began operating in earnest during the half.

Debt Falls as Cash Flow Funds Development

Operating cash flow after capitalised development was A$5.6 million, down from A$6.2 million, mainly because of higher tax payments. Reckon invested A$7.7 million in cloud product development across both divisions, yet still reduced net debt to A$1.5 million from A$5.4 million after paying the final A$1.25 million Cashflow Manager instalment in January 2026.

AI Roadmap and Second-Half Priorities

Reckon has not issued numerical earnings guidance. Its stated priorities include accelerating the move to the Reckon One codebase, growing legal billing workflows in the US and other markets, and expanding AI across both businesses. The company is collaborating with Amazon Web Services on in-product AI features and plans to introduce an AI-powered onboarding assistant for small business customers during the second half of 2026.

Chief Executive Sam Allert described AI as a revenue growth opportunity rather than a cost-cutting tool, and management reported development efficiency gains of about 30%. The board expects to keep paying one dividend annually following the half year. Shares were priced at A$0.405 on 2 November 2026, up 1.25% on the day, valuing the company at A$45.88 million.