Reckon delivers $14M EBITDA and maintains consistent dividend in HY26 result
In its HY26 investor presentation covering the half year ended 30 June 2026, Reckon Limited (ASX: RKN) reported $32M in revenue, $14M EBITDA and $5M net profit after tax (NPAT). The result reflected NPAT growth of +6% over the prior corresponding period (+18% organic), despite reported revenue dipping -3% (-1% organic).
Management confirmed a 2.5 cents per share fully franked dividend to be paid in August 2026. The software-as-a-service (SaaS) company operates across two distinct segments: Small Business, offering accounting and payroll tools for SMEs, and Legal, providing billing and document workflows through its zebraworks brand. Net debt improved to $1.5M, down from $5.4M at 31 December 2025.
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HY26 financial performance at a glance
The group results, presented on both a reported and organic (constant currency) basis, showed underlying earnings momentum once currency movements and a prior-period one-off stimulus receipt were stripped out.
| Metric | HY26 ($M) | HY25 ($M) | Reported Growth | Organic Growth |
|---|---|---|---|---|
| Revenue | 31.9 | 33.0 | -3% | -1% |
| EBITDA | 14.2 | 14.1 | +1% | +6% |
| NPAT | 4.5 | 4.2 | +6% | +18% |
Balance sheet and cash highlights from the presentation included:
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Operating cashflow (before development) of $13.3M
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Development spend of $7.7M
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Net debt of $1.5M, with a $25M bank facility available
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Group development investment of $8M
The organic NPAT growth of 18% highlighted underlying earnings strength once currency effects and the prior-period stimulus receipt were removed, offering investors a clearer view of momentum beneath the headline decline in reported revenue.
AI as a core enabler across both businesses
Management framed artificial intelligence (AI) as an operational driver rather than a marketing theme, positioning it as central to how the company builds, serves and operates.
The presentation noted circa 30% efficiency gains in product development processes delivered to date, with those savings reinvested into the pace of innovation rather than headcount reduction. The company highlighted DataQ AI, launched in FY25 as its first AI-powered, client-facing tool, now live in the Legal Group. A strategic AWS collaboration was outlined to accelerate the AI roadmap, building on an existing cloud infrastructure relationship.
For H2 2026, management detailed a pipeline in development:
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An AI-powered onboarding assistant to help new and existing SME customers get up and running faster
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In-product notifications and bank automation enhancements to proactively surface compliance obligations such as Payday Super and Single Touch Payroll (STP)
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AI governance frameworks to ensure responsible deployment
Educational: What is SaaS billing workflow software and why it matters
Reckon operates across two markets that both rely on subscription-based software. In Small Business, the company provides cloud accounting, payroll and invoicing tools for SMEs, charging recurring subscription fees rather than one-off licences.
In Legal, the zebraworks platform automates document and billing workflows for law firms, helping them move from “invoices to cash” more quickly by reducing the manual steps that slow billing and collections.
Why do subscription models matter to investors? Recurring revenue delivers predictable cashflow and typically supports higher margins. In Reckon’s case, subscription revenue accounts for 93–94% of segment revenue, and the Small Business segment reported an EBITDA margin of 55%, illustrating the cash-generative nature of the model.
Small Business: Reckon One revenue grows 23%
The presentation positioned Reckon One as the growth engine within a stable, cash-generative segment. Reckon One revenue rose 23%, reaching $5.4M in HY26 from $4.4M in HY25, supported by an average revenue per subscription (ARPU) improvement of 19%.
The segment reported an EBITDA margin of 55%, or 34% on an adjusted basis after development costs. Management noted an accelerated transition to the Reckon One codebase, with new features added including PayDay Super, Inventory Management, Enhanced Reporting, a new journal experience and Employee Onboarding.
The subscription base across the segment was reported as:
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Reckon One / ReckonMobile: 42K
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ReckonAccounts Hosted: 21K
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Cashflow Manager: 19K
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ReckonAccounts (Desktop): 18K
The structural story for investors centres on Reckon One growth offsetting the gradual decline in legacy desktop products, gradually shifting the revenue mix toward cloud subscriptions.
Legal (zebraworks): Billing workflows accelerate in US and global markets
The Legal Group presentation emphasised an international growth runway and a blue-chip client base. Management noted the business works with 12 of the 20 largest law firms worldwide and 40% of the AmLaw 200 largest firms in the US.
Billing Workflows subscription revenue grew +97% on a constant currency basis, reaching $0.6M in HY26 from $0.3M in HY25. Legal Group EBITDA on a constant currency basis rose +111%, to $1.5M from $0.7M. The Serviceable Addressable Market for Billing Workflows expanded to 175k attorneys, up from a previous 77k, within a total of 1.4 million attorneys across the USA and Canada.
Attorneys sold grew to 6.4k in HY26 from 5.0k in 2025, with installed attorneys reaching 3.0k.
Client feedback — Taylor Day
“Zebraworks is a 100% upgrade to our existing financial management system.” — Leah H. Paul, MBA, Comptroller, Taylor Day
The presentation also referenced a case study of a 150-attorney firm that implemented Zebraworks BillQ, PayQ and DataQ, and 18 months later had reduced total lockup by 38% and increased collected realisation by 2.8%.
The investment case and what’s ahead
Management framed the forward focus around two distinct businesses executing on a plan to create valuation improvement and shareholder return. The presentation emphasised continued investment into scaling cloud products and AI across both the Small Business and Legal segments.
Key threads outlined by management, led by Chief Executive Officer Sam Allert, included a consistent dividend track record with a 2.5 cents annual dividend, and a clean, low-leverage balance sheet carrying $1.5M in net debt against a $25M bank facility.
The company positioned Reckon One growth and the expanding Legal Group billing workflows as the core structural drivers, with the strategic priority remaining the transition toward cloud subscriptions and the deployment of AI capabilities across the group. The presentation did not include forward earnings guidance or share price targets.
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