Reckon delivers strong first half financial results with revenue up 16% to $33 million

ASX-listed Reckon Limited have delivered impressive growth across revenue, EBITDA and NPAT, with Group revenue of $33 million, up 16% on the previous corresponding period (PcP).

EBITDA was also up, climbing 21% on PcP to $14 million, and NPAT of $4 million, up 35% up on PcP.

Reckon CEO, Sam Allert (pictured) said, “We are very pleased with our first half results, as we continue with our plan to generate stable cash flows from our well-established Business Group, providing us the flexibility to invest in high growth opportunities such as nQ Zebraworks, our US and UK focused Legal Group, as well as the continued investment in our Reckon One cloud-based products. Our strong balance sheet provided the means to acquire Cashflow Manager at the commencement of HY25, a welcome addition to our financial performance and adding approximately 20,000 new SME clients.

“Within the Business Group, the sales for Reckon One was a significant achievement with the increase in revenue per user in our proprietary cloud-based products providing substantially all organic revenue growth in the Business Group. Users of Reckon One and our mobile-based cloud products represent approximately 20% of our subscription revenue base within the Business Group and we have only scratched the surface on the opportunity to transition our legacy product users to Reckon One. We know that our migration of all clients from our legacy products to our Reckon One product will have challenges, but the performance of Reckon One is very encouraging for what will be a multi-year process and reinforces the value that the company’s accounting and payroll solutions deliver for our customers and all SMEs.

“At the end of 2024, together with other shareholders of nQ Zebraworks, we agreed to contribute to a US$4.5 million funding of the Legal Group, trading as nQ Zebraworks, for it to pursue growth in its Billing Workflows products. HY25 saw growth in subscription revenue, particularly in the primary focus area of the Billing Workflows products, and the Legal Group finished the half year with a solid backlog and pipeline for the second half of 2025. The Legal Group continues to present considerable upside opportunity for Reckon, given the size of the addressable market in the US and UK and the quality of our customers.

“We have continued our track record of rewarding shareholders with healthy dividends, and we maintain our intention is to pay one dividend annually at a healthy yield based on the current share price.”