Highlights

  • Reckon (ASX:RKN) shares were unchanged at AUD 0.46 on 13 August, after touching an intraday low of AUD 0.42.
  • Reckon One Revenue increased 23% in the latest half year, with average revenue per subscription rising 19%.
  • Billing Workflows subscription revenue increased 97% in constant currency, while Legal Group revenue rose 5%.
  • Group EBITDA remained at $14 million and NPAT increased 6% to $5 million, with net Debt reduced to $1.5 million.

Reckon Limited (ASX:RKN) shares were unchanged at AUD 0.46 as of 12:25 pm on 13 August 2026, with the stock having touched an intraday low of AUD 0.42. The share performance comes as investors assess the company's latest operating update, which outlined continued expansion in its cloud accounting platform and Billing Workflows operations.

Reckon One Remains a Key Growth Area

Reckon's latest half-year figures showed continued movement towards its cloud-based product strategy. Reckon One revenue increased 23% compared with the previous corresponding period, while average revenue per subscription rose 19%.

The Business Group's total subscription revenue was stable against the prior corresponding period. During the period, the group continued transitioning customers using legacy products to Reckon One, its proprietary cloud accounting platform.

The company also reported that the transition to the Reckon One codebase was progressing, with cloud-based product development remaining a significant area of expenditure. Reckon invested $7.7 million in cloud-based product development during the period across its business units.

Billing Workflows Records Higher Subscription Revenue

The Legal Group's Billing Workflows product recorded a 97% increase in subscription revenue on a constant-currency basis. Total Legal Group revenue increased 5% in constant currency compared with the previous corresponding period.

The figures provide an indication of the contribution from Reckon's cloud and workflow products within its Legal Group operations. The company also continued expanding its presence in the US legal market during the period.

Currency movements affected the reported group figures, making the constant-currency measures relevant to the comparison. On a reported basis, group revenue was $32 million, down 3% from the previous corresponding period, while the company stated that revenue was stable on a constant-currency basis.

Profit and Cash Flow Position

Group EBITDA remained at $14 million during the half year, while net profit after tax reached $5 million, representing a 6% increase from the previous corresponding period.

Operating cash flow after capitalised development costs was $5.6 million, compared with $6.2 million in the corresponding period. The company attributed the reduction to increased tax payments during the half year.

Reckon's Balance Sheet also showed a lower net debt position. Net debt stood at $1.5 million, compared with $5.4 million at 31 December 2025. The company completed the final $1.25 million payment for Cashflow Manager in January 2026.

Dividend and Capital Allocation

The company declared a fully franked Dividend of $0.025 per share alongside the half-year results. The dividend forms part of the company's capital allocation during a period in which it is continuing to direct expenditure towards cloud-based product development.

The combination of development expenditure, subscription revenue metrics and the movement in net debt provides several financial indicators for investors monitoring the company's transition towards recurring cloud-based products.

Conclusion

Reckon's latest financial data presents a business continuing to shift its product base towards cloud platforms while maintaining reported EBITDA and increasing NPAT. Reckon One recorded higher revenue and average revenue per subscription, while Billing Workflows posted substantial subscription revenue growth on a constant-currency basis. At the same time, reported group revenue declined 3%, Operating Cash Flow was lower year on year and the company continued to allocate $7.7 million towards cloud product development. With net debt reduced to $1.5 million and a fully Franked Dividend of $0.025 per share declared, the latest figures provide investors with an updated view of Reckon's operating performance and ongoing cloud transition.