Reckon HY26 NPAT Up 6%, Reckon One Revenue Up 23%

Reckon (ASX:RKN) reported HY26 group revenue of $31.9 million, down 3 per cent on the prior corresponding period and down 1 per cent on a constant currency basis. EBITDA was broadly stable at $14.2 million, up 1 per cent, and up 6 per cent after adjusting for currency movements and a government stimulus receipt recognised in HY25. NPAT increased 6 per cent to $4.5 million, and was up 18 per cent on the same adjusted basis. Group operating cash flow after capitalised development costs was $5.6 million, down from $6.2 million in HY25 due to increased tax payments during the half. Net debt fell to $1.5 million from $5.4 million at 31 December 2025, despite funding the final $1.25 million instalment for the Cashflow Manager acquisition, paid in January 2026. The company declared a fully franked dividend of 2.5 cents per share, payable on 31 August 2026, and said the Board anticipates continuing to pay one dividend annually following the half year.

Reckon One revenue increased 23 per cent on the prior period to $5.4 million from $4.4 million, with average revenue per subscription up 19 per cent. The company said Reckon One represents approximately 22 per cent of the Business Group's subscription revenue base. Business Group revenue was $25.4 million compared with $26.1 million in HY25, with total cloud-based subscription revenue up 2 per cent to $14.4 million and EBITDA stable at $14.0 million; the company said increased velocity in migrations to Reckon One produced an adverse deferred revenue movement of $0.6 million between HY25 and HY26. In the Legal Group, subscription revenue rose 4 per cent to $6.2 million and EBITDA rose 10 per cent to $1.5 million, with Billing Workflows subscription revenue up 97 per cent in constant currency and annual recurring revenue up 5 per cent in constant currency to $1.4 million. Billing Workflows sales to date comprise approximately 6,400 attorneys, of which 3,000 were installed by HY26, against a serviceable addressable market management estimates at 175,000 attorneys in the United States. The group invested $7.7 million in cloud-based product development across the two business units.