Reckon Limited (ASX:RKN) Develops Cloud Accounting and AI Tools Following Half-Year Results

Aditi Sarkar

11 November 2026 04:33 PM AEDT

Reckon Limited (ASX:RKN) Develops Cloud Accounting and AI Tools Following Half-Year Results

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Highlights

• Reckon reported AUD 31.9 million in first-half 2026 Revenue and AUD 14.2 million in EBITDA.

• Half-year net profit after tax increased 6% to AUD 4.5 million, while organic profit rose faster.

• Reckon One revenue grew 23% to AUD 5.4 million as average subscription revenue also improved.

• The company outlined new AI-enabled onboarding and compliance tools for delivery during the second half of 2026.

Cloud subscriptions and legal workflow software remain central to Reckon Limited (ASX:RKN). Its latest half-year update paired higher Earnings with continued Investment in Reckon One and AI-enabled product features.

Trading Context

Reckon shares were up about 3.7% to around 42 cents on Wednesday 11 November 2026, around 2:40pm AEDT on Volume of about 116,000 shares. The company has not lodged a Business announcement since its half-year result in early August.

Software Operations

Reckon provides financial management software. The company indicated subscription revenue accounts for roughly 93% to 94% of segment revenue.

FY26 Results

Reckon released its half-year result, for the six months to 30 June 2026, on about 4 August 2026. The ASX announcements list shows the results documents were lodged as price sensitive on that date. of the presentation, revenue was AUD 31.9 million, down 3% (down 1% on an organic, constant-currency basis). EBITDA was AUD 14.2 million, up 1% reported and 6% organic, and net profit after tax was AUD 4.5 million, up 6% reported and 18% organic. The organic figures strip out currency movements and a one-off stimulus receipt in the prior period. Operating Cash Flow before development was AUD 13.3 million, development spend was AUD 7.7 million, and net Debt was AUD 1.5 million, down from AUD 5.4 million at 31 December 2025, with a AUD 25 million bank Facility available. The board declared a fully franked Interim Dividend of 2.5 cents per share, to be paid in August 2026.

Cloud and AI Product Development

The company indicated Reckon One, the company’s cloud accounting product, grew revenue 23% to AUD 5.4 million, helped by a 19% improvement in average revenue per subscription. The Small Business segment reported an EBITDA Margin of 55%, or 34% after development costs on an adjusted basis. On artificial intelligence, management said it had seen roughly 30% efficiency gains in product development, and that its DataQ AI tool, launched in FY25, is now live in the Legal business. The presentation also outlined an AI-powered onboarding assistant and in-product alerts on compliance obligations such as Payday Super and Single Touch Payroll for the second half. These are company-stated plans, and none is a guarantee of revenue.

Sector Setting

Small business accounting is a crowded market in Australia, with larger rivals and frequent regulatory change, which both creates Demand for compliance features and requires continued product investment. Reckon is a small company with a Market Value of about AUD 46 million on ASX data, and its shares have traded between 38 cents and 61 cents over the past 52 weeks.

Execution Considerations

Reported revenue fell in the half, and profit growth relied partly on currency and on adjustments. Development spending is significant relative to earnings. The thin volumes today, about 116,000 shares, mean a small amount of trading can shift the price.

Upcoming Milestones

Reckon has said it expects to deliver AI features in the second half of calendar 2026,. The next scheduled result would be its full-year result for the year to 31 December 2026, though no date was confirmed in the information reviewed here.

FAQs

Q: How much revenue did Reckon generate in the first half?

A: AUD 31.9 million.

Q: What was its half-year EBITDA?

A: AUD 14.2 million.

Q: How much did Reckon One revenue grow?

A: 23% to AUD 5.4 million.

Q: What interim dividend was declared?

A: 2.5 cents per share, fully franked.

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